ICRA-rated securitised retail unsecured pools showed a marginal recovery in FY2027 so far, after a decline in FY2026. The drop was largely attributable to industry wide stress in the microfinance sector. Nevertheless, ICRA expects the collections to remain strong for secured asset classes. Moreover, the rating of securitised instruments is likely to remain stable, given adequate credit enhancements.

• ICRA expects unsecured loans to continue to witness further improvement in collections after recording a slight recovery in FY2027 so far. Encouragingly, ICRA-rated securitised pools for secured asset classes have continued to record a healthy performance during this year.
• Secured small and medium enterprise (SME) pools have outperformed unsecured ones in terms of collection efficiency and asset quality in FY2026 and 4M FY2027.