Securitisation volumes jump 60% in Q1FY24: Crisil
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Rating agency Crisil in its latest report has said robust loan collections and high credit growth at non-bank lenders led to a 60 per cent jump in securitisation volumes to Rs 55,000 crore in the April-June quarter of FY2023-24 (Q1FY24).
This is the highest ever in the first quarter of a fiscal year, rating agency said, attributing the growth to high demand from banks and non-banking finance companies (NBFCs) resorting to securitisation as a funding route.
It said during the first quarter, the number of transactions went up to over 250 from 160 in the year-ago period. It added that private and public sector banks continued to be the dominant investors, followed by foreign banks. Besides, it stated there were 80 originators and 50 investors active during the quarter.
Securitisation refers to an activity where a financier or lender transfers future receivables on a loan or a bunch of loans to other financiers, which helps with immediate liquidity requirements.
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