Q1 securitisation volume dips 20% to Rs 45,000 cr

MUMBAI: Despite increased participation by banks, the overall securitisation volume has declined by 20 per cent on-year to Rs 45,000 crore in the June quarter of the current fiscal, primarily because of the exit of the industry leader HDFC after its reverse merger with its subsidiary HDFC Bank from July 2023.

Excluding housing finance companies, securitisation volume remained largely flat on an annualised basis, but non-banks and the HFCs continue to utilise securitisation as a funding tool to raise liquidity as well as to diversify their funding avenues and grow their investor base, according to an analysis by Icra Ratings.

The agency projects securitisation volume to pick up in the subsequent quarters and cross the Rs 2 trillion mark by March.