Securitisation volumes rise 5% to Rs 1.87 lakh crore in April–December FY26: Crisil

Securitisation volumes in India rose about 5% year-on-year to Rs 1.87 lakh crore in the first nine months of fiscal 2026, driven largely by strong originations from non-banking financial companies (NBFCs), even as bank-led issuances remained muted, Crisil Ratings said on Thursday.

Volumes during the third quarter stood at around Rs 63,000 crore, broadly in line with the corresponding period last year. While banks had made a meaningful contribution to securitisation volumes in the third quarter of FY25, their share was negligible this fiscal, with increased activity from NBFCs offsetting the decline.

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Originations by NBFCs recorded a sharp 35% growth year-on-year in the third quarter, supported by higher securitisations of gold and vehicle loan pools. As a result, NBFCs accounted for nearly 97% of overall retail securitisation volumes in the quarter, compared with about 71% in the same period last year.

The securitisation market also saw a broader participation base, with the number of originators rising to around 200 in the first nine months of FY26 from about 150 a year ago, largely comprising NBFCs.

Pass-through certificate (PTC) transactions continued to dominate the market, accounting for 62% of overall volumes during the nine-month period. Direct assignment (DA) transactions gained traction in the third quarter, led by increased sell-downs of gold and microfinance loan pools, as some originators moved away from co-lending amid higher operational complexities under new guidelines.

Among asset classes, gold loan securitisation rose sharply to 12% of total volumes from just 1% a year earlier, while vehicle loans accounted for 43%, marginally lower than last year. Mortgage-backed securitisation declined to about 17% due to subdued activity by a large private bank, while the microfinance segment maintained a steady 12% share despite sectoral stress.

Looking ahead, Crisil Ratings expects securitisation volumes in FY26 to remain steady, supported by continued fund-raising by NBFCs and a potential pick-up in bank-led originations as credit-deposit ratios inch higher.