Slowdown in loan growth takes securitisation to all-time high of Rs 1 lakh crore
As bank credit growth perform at single-digit, banks and firms are tapping the securitisation market so much so that transactions through this has risen by 47% in FY17.
Key Highlights:
- Securitisation transaction stood at Rs 102,500 crore in FY17
- Pass-through certificates and mortgage-backed securities best performer
- Bank's outstanding credit growth reached at Rs 78.81 lakh crore in FY17
Securitisation transactions in India touched a lifetime high of Rs 1,02,500 crore in fiscal 2016 – 17 (FY17), rising 47% as against last year.
Securitisation is a portal where a company clubs its different financial assets/debts to form a consolidated financial instrument which is issued to investors.
Krishnan Sitaraman, Senior Director, Crisil Rating, said, “Tax clarity gave a big fillip to the securitisation market. The shift back to PTCs augurs well for healthy development of the market due to protection for investors against potential pool delinquencies through credit enhancement coupled with regular monitoring and greater transparency in pool performance.”
Bank credit growth will inch up this year but will still remain weak
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