Securitisation volume to 8 years high: Crisil

MUMBAI: Securitisation transactions in India soared to eight years high to Rs 70,000 crore in 2015-16, a 60% jump over the previous year, said rating company Crisil.

Last in 2007-08, securitisation volume was at Rs 71,400 crore.

Direct assignments or direct sale of loans by originators, who are mostly non-banking finance companies, to banks continued their good run from last fiscal, even as transaction volume in pass-through certificates also increased.

“What spurred interest in DAs was the declining quality of corporate credit, which persuaded public sector banks (PSBs) to focus more on growing their retail book. So much so, CRISIL estimates around half of the overall volume was purchases made by PSBs,” Crisil said in its report. “Due to this, transaction volume in non-priority sector (non-PSL) assets also surged to an estimated 25% of total securitised assets.”