As per ICRA’s assessment, securitisation volumes in Q1 FY2027 increased by ~19% YoY to Rs. 61,000 crore. This was almost entirely originated by the non banking entities and continuation of the trend witnessed since last fiscal, wherein banks as originators have seen a significant reduction in volumes, while non banking entities have reported a robust growth. 

NBFCs and HFCs posted a ~27% increase over Q1 FY2026. Notably, this growth was recorded despite absence of sell-down volumes by one of the largest NBFCs, reflecting higher selldown by other larger NBFCs and HFCs, coupled with increasing adoption of securitisation as a funding tool by smaller entities. 

ICRA expects securitisation volumes to remain robust at Rs. 2.6-2.7 lakh crore in FY2027, underpinned by the growing scale of NBFC and HFC operations, along with strengthening asset quality trends and improved credit behavior following various regulatory measures.

Source: ICRA Research