Securitisation volumes surge 60% to Rs 55,000 cr in Q1: Crisil Report

Robust loan collections and high credit growth at non-bank lenders led to 60 per cent jump in securitization volumes to Rs 55,000 crore in June quarter, a report said on Monday.
This is the highest ever in the first quarter of a fiscal, rating agency Crisil said, attributing the growth to high demand from banks and non-bank finance companies (NBFCs) resorting to securitization as a funding route.
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.
During the first quarter, the number of transactions went up to over 250 from 160 in the year-ago period, it said, adding that private and public sector banks continued to be the dominant investors, followed by foreign banks.
There were 80 originators and 50 investors which were active during the quarter, the agency said.
Securitisation is allowing banks to do two things: keep driving their credit