Securitisation Surge: FY25's Record-High Volumes

Securitisation volumes in FY25 reached a record Rs 2.35 lakh crore, driven by deals from private sector banks and NBFCs. Despite a dip in the fourth quarter, increased involvement from vehicle financiers and mortgage lenders offset decreases in microfinance and gold loan segments.

Securitisation volumes soared 24% in FY25, culminating in an unprecedented Rs 2.35 lakh crore, according to a report by Crisil unveiled on Monday. The upswing was propelled by substantial deals facilitated by private sector banks and non-bank financial companies.

Largest private bank, HDFC Bank, notably ramped up its activities, significantly contributing to the surge as it adjusted its credit-deposit ratio post its merger with HDFC. The number of securitisation issuers rose to 175 from last year's 165.

The report highlighted that vehicle loans dominated the asset classes, constituting 47% of the volume. Meanwhile, banks expanded their securitisation market share to 26%, responding to credit-deposit challenges. The trend is expected to persist as credit growth is anticipated to rise in fiscal 2026.

(With inputs from agencies.)