Liquidity-hit NBFCs drive securitisation volumes

Due to large-scale funding requirements, several non-banking financial entities opted to raise resources through retail portfolio sell-down to banks, said an Icra report

100-200 bps - rise in bond yields last month

Rs 18,000 cr – surge in securitisation volumes in October

Rs 66,300 cr – securitisation volumes in first half of this fiscal

Rs 83,800 cr – total volumes during entire fiscal 2018

Rs 78,000 cr – of commercial paper due to repayment last month

The advantage of securitisation transactions – especially in the current market scenario – is that the investors are not exposed to entity-level credit risk and are seen taking exposure to the underlying pool of retail borrowers to whom these entities have lent," 
— Vibhor Mittal, group head - structured finance, Icra