New Delhi, October 12 (IANS). According to a report, India's securitization market reached a record level in the first half (H1) of the financial year 2026-27. The total securitization volume during this period stood at Rs 1.47 lakh crore, which is about 42 percent more than the same period of the last financial year.
The ICRA report said that there was a sharp surge in activity in the second quarter and the securitization volume reached Rs 86,000 crore in the second quarter of FY 2027.
This growth was primarily supported by rising demand in the gold loan segment, improvement in vehicle loan securitization and continued traction in the MSME and business loan portfolio.
According to ICRA, a major reason for the surge in securitization volumes has been the increasing reliance on this medium by non-banking financial companies (NBFCs) to meet their funding needs.
The report states that gold loans were the biggest driver of this growth. The volume of gold loan securitization in the first half of the financial year 2026-27 increased by almost one and a half times on an annual basis.
Sachin Joglekar, vice president and co-group head, Structured Finance Ratings, ICRA, said traditional segments like auto, MSME or business loans and mortgages also continued to grow at a steady pace, boosting overall volumes.
He said the strong performance in the first half supports ICRA's estimate that securitization volume could reach a new record level of Rs 2.6 lakh crore to Rs 2.7 lakh crore in the full financial year 2026-27.
Although the highest growth was in the gold loan category, vehicle loan securitization has also regained some of its lost share.
Vehicle loans accounted for about one-third of the total securitization volume in H1FY27, compared to about 25 percent in Q1FY27. According to the report, some lenders have re-entered this market, while some have increased their sales volumes in the second quarter.
After gold loans and vehicle loans, mortgage loans, small business loans and microloans were the other major asset categories, accounting for between 12 to 15 per cent of the total volume for the first half (H1) of FY 2026-27.
In terms of transaction structure, the share of both pass-through certificate (PTC) and direct assignment (DA) routes in the securitization market was almost equal. This trend remained the same as in the previous quarter.
According to the report, strong demand from sectors such as gold loans, vehicle loans and MSME financing, along with growing funding needs of NBFCs, may continue to drive the securitization market in the coming months.
–IANS
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