Securitisation volumes in the first nine months of the financial year 2025-26 increased by 5% to Rs 1.87 lakh crore from Rs 1.78 lakh crore in the previous year, as per a Crisil Ratings report. Non-banking financial companies (NBFCs) drove this growth, with limited contributions from banks. The third quarter saw volumes at Rs 63,000 crore, similar to the previous fiscal year.
While banks played a significant role in securitisation volumes last year, their involvement was minimal this fiscal year. On the other hand, NBFCs recorded a robust 35% year-on-year growth in originations in the third quarter, fueled by gold and vehicle loan pools. NBFCs accounted for 97% of retail volumes this quarter, a notable increase from 71% in the same period last year.
The number of originators in the market expanded from 150 to 200 in the first nine months of this fiscal year, primarily comprising NBFCs. Aparna Kirubakaran, Director at Crisil Ratings, attributed the surge in NBFC originations to high volumes in gold and vehicle loan securitisations. The market also benefited from banks investing in securitisations to meet their priority sector loan (PSL) targets.
Gold loan securitisation witnessed a significant rise, constituting 12% of the market volume compared to 1% last year. However, a dominant originator largely influenced the market. Vehicle loans’ share decreased slightly to 43%, but NBFC-originated vehicle pools saw a 14% growth over nine months, driven by both existing and new players transacting in large volumes.
