The value of securitisation transactions¹ topped Rs 65,000 crore in January-March 2026, hoisting last fiscal’s aggregate to an all-time high of Rs 2.55 lakh crore (see Chart 1 in annexure). That translates to 20% on-year growth in the fourth quarter and 9% annually.

The surge was led by significant growth in originations by non-banking financial companies (NBFCs²), which clocked a 30% on-year increase in value. The step-up in originations by NBFCs more than compensated for muted originations by banks, which accounted for only 3% of the total value in fiscal 2026 as against 26% in the previous fiscal.

The overall securitisation market remains concentrated with the top originators accounting for majority share, although there has been some broad-based activity of late. The total number of originators increased to over 190 in fiscal 2026 from 175 in fiscal 2025 and the share of the top 20 originators dipped to 65% from 71%.

Says Aparna Kirubakaran, Director, Crisil Ratings, “Increased NBFC activity reinforces the attractiveness of securitisation as a strong alternative fund-raising tool, especially for mid-sized players. Robust performance of cherry-picked pools and structural credit enhancements in pass-through certificates (PTCs) continue to support investor confidence in this market. Among NBFCs, while originations by vehicle financiers remained strong, gold-loan backed securitisation emerged as the second-largest asset class, surpassing mortgages, last fiscal.”

Historically, vehicle and mortgage loans have been the top two asset classes. However, in fiscal 2026, gold loan-backed securitisation witnessed robust growth, mirroring a surge in demand for the underlying asset class and accounted for 15% of the overall transactions.

Vehicle loan securitisation cornered the largest market share in fiscal 2026, at 40%. While the share declined from 47% in the previous fiscal (see Chart 2 in annexure), this is largely attributed to subdued participation by a major private bank, which also resulted in the share of mortgage-backed securitisation dropping to 14% from 22%.

Business loans and personal loans together showed a slight uptick in market share to 17% in fiscal 2026 from 16% in fiscal 2025. Microfinance inched up to 12% from 11%.

In terms of the mode of activity, the share of direct assignments (DAs) reduced to ~40% this fiscal from ~46% (see Chart 3 in annexure).

Says Payal Anand, Associate Director, Crisil Ratings, “PTC originations have achieved all-time high volumes, accounting for ~60% of total market. PTCs are clearly gaining favour across asset classes, especially in the unsecured space. Investors in unsecured loan transactions, like microfinance, are preferring PTC route, due to the support provided by external enhancement, following the asset quality challenges that emerged in the previous fiscal. PTCs accounted for 69% of microfinance securitisation transactions last fiscal, compared with 30% in fiscal 2025. DAs, on the other hand, continue to be the preferred route for mortgages and gold loans.”

On the investor front, private and public sector banks continue to lead, though there has been increased participation by mutual funds and foreign banks. Insurers and pension funds have also invested in select transactions.

NBFCs will likely continue to drive the issuance momentum in fiscal 2027, as securitisation provides them with a valuable tool for resource mobilisation and investor diversification, enabling efficient fundraising.

¹ Refers to structured finance transactions, including pass-through certificates and direct assignment transactions.
² NBFCs include housing finance companies (HFCs) but exclude government-owned NBFCs.
^# Retail volumes exclude Rs 21000 crore corporate loan PTC issuance in second quarter of fiscal 2026