India’s securitisation framework is evolving to attract a wider investor base, such as, mutual funds, thereby deepening market participation and improving liquidity for NBFC-originated assets.
Securitisation volumes rose 8% to ₹1.24 trillion in H1 FY26, supported by steady NBFC activity and a few large transactions from non-financial sector entities. And PTC issuances reached a decadal high of 68%, driven by strong vehicle-loan pools and substantial transactions from non-financial sector entities, even as Direct Assignment (DA) volumes moderated. Banks remain the dominant buyers, though foreign banks and mutual funds have begun increasing their exposure.
Looking ahead, rising consumption and healthier NBFC originations, as growth picks up for the sector, are expected to sustain securitisation volumes. However, with credit–deposit ratios stabilising, bank originations may remain muted.
Potential headwinds include rising default rates in personal finance and microfinance, alongside a shift among lenders towards “secured” lending, where the sense of protection often exceeds the actual value or realisability of the collateral. As global trade disruptions continue to spread through supply chains, financial sector entities may encounter increasingly challenging conditions, which could also be reflected in the performance of future securitisations.
This webinar will examine the evolving securitisation landscape, recent volume trends, and the emerging risks that could shape performance in the coming quarters. It will also provide participants an opportunity to share views and exchange ideas.
Key Discussion Points
- Volume trends and sector-wise drivers
- Shift toward PTCs vs. moderating DA flows
- Credit quality, ratings, and investor confidence
- Emerging risks: rising defaults, macro headwinds
