NBFCs drive securitisation issuances to record first-quarter high

NBFCs (non-banking financial companies) helped India’s securitisation market achieve its best-ever first quarter. The total amount increased by 22% compared to last year, reaching around ₹60,000 crore, according to Crisil Ratings.

Around 98% of this came from NBFCs, which is different from earlier times when banks also contributed a lot.

There was also a change in the types of loans:

• Gold lobusiness-standard.ans became the biggest share (31%), moving ahead of vehicle loans
• Vehicle loans dropped to 26%, mainly because one big lender issued fewer loans during this time

In simple terms, NBFCs led the growth, and gold loans became the top choice in the market.