Securitisation Surge: NBFCs Lead the Charge in Debt Market

Debt securitisation volumes increased to Rs 49,000 crore in April-June 2025. NBFCs drove strong growth, contributing 92% of the market. While vehicle loans held a 41% share, mortgage-backed loans saw a decrease. The lifting of regulatory curbs boosted gold-loan securitisation, and PTCs rose to 58%.

Debt securitisation volumes have climbed to Rs 49,000 crore during the April-June 2025 period from Rs 45,000 crore in the same timeframe last year, as per a report released on Monday.

The total number of originators participating in these securitisations was approximately 90, according to Crisil Ratings. Notably, issuances by non-banking financial companies (NBFCs), particularly led by large players, experienced a substantial on-year growth of 24%, partially offsetting the diminished origination volume by banks.

NBFCs accounted for 92% of the market in Q1FY26, an increase from 74% in FY25. The lifting of regulatory restrictions on a major originator spurred gold-loan securitisation to surge to 11% from negligible levels the previous year, while vehicle loans remained steady at a 41% share.

(With inputs from agencies.)