India’s securitisation market scaled a new peak in fiscal 2026, with total transaction value reaching an all-time high of ₹2.55 lakh crore. Transactions worth over ₹65,000 crore were recorded in the January–March quarter alone, translating into a 20% year-on-year growth in Q4 and 9% growth for the full fiscal.
This expansion was largely driven by non-banking financial companies (NBFCs), whose originations surged by 30% year-on-year. Their strong performance more than compensated for the relatively weak contribution from banks, whose share in total securitisation value dropped sharply to 3% in FY26, compared with 26% in FY25.
While the market continues to be dominated by leading players, there are early signs of broader participation. The number of originators increased to over 190 in FY26, up from 175 in the previous fiscal, while the share of the top 20 originators declined to 65% from 71%, indicating gradual diversification.
According to Aparna Kirubakaran, Director at CRISIL Ratings, securitisation is increasingly emerging as a reliable alternative funding avenue, particularly for mid-sized NBFCs. Strong performance of carefully selected asset pools and structured credit enhancements in pass-through certificates (PTCs) have continued to strengthen investor confidence. Among asset classes, vehicle loan securitisation remained dominant, while gold loan-backed securitisation gained significant traction, overtaking mortgages to become the second-largest segment.
Traditionally led by vehicle and mortgage loans, the asset mix saw a shift in FY26. Gold loan-backed securitisation accounted for 15% of total transactions, reflecting rising demand in the segment. Vehicle loans continued to hold the largest share at 40%, though lower than 47% in FY25, primarily due to reduced participation from a major private bank. Consequently, the share of mortgage-backed securitisation declined to 14% from 22%.
Other segments also showed moderate growth. The combined share of business and personal loans increased slightly to 17%, while microfinance edged up to 12%.
In terms of structure, pass-through certificates (PTCs) gained prominence, accounting for nearly 60% of total issuances, a record high. Meanwhile, the share of direct assignments (DAs) declined to around 40%, from approximately 46% in the previous fiscal.
Payal Anand, Associate Director at CRISIL Ratings, noted that PTCs are witnessing growing preference across asset classes, particularly in unsecured lending. Investors, especially in microfinance transactions, are increasingly opting for PTC structures due to enhanced credit protection mechanisms. Notably, PTCs accounted for 69% of microfinance securitisation in FY26, a sharp increase from 30% in FY25. However, DAs continue to remain the preferred route for mortgages and gold loan portfolios.
On the investor side, banks—both private and public sector—continued to dominate, although participation from mutual funds, foreign banks, insurers, and pension funds has increased selectively.
Looking ahead, NBFCs are expected to remain the primary drivers of securitisation activity in FY27, as the instrument continues to offer an efficient route for capital raising, liquidity management, and investor diversification.
