FY16 MFI loan securitisation up 125% to `11,500 cr
This stood at Rs 5,075 crore in the fiscal 2014-15. “Growth happened as microfinance institutions opted for this funding route to churn capital faster and fuel growth,” rating agency Crisil said in a report on Wednesday.
The overall securitisation market may have grown by 60 per cent to an estimated Rs 70,000 crore in 2015-16, it added. For issuance demographics, PTCs continue to be the preferred route with 85 per cent of the volume in the last fiscal, whereas in the overall securitisation market, direct assignments rule the roost, accounting for two-thirds of new transaction volumes.
“A clutch of factors contributed to the volume more than doubling. Firstly, banks are increasingly using this route to achieve their priority sector lending targets. Secondly, negligible delinquencies and higher yields have made transactions attractive and helped expand the investor base,” Crisil senior director Krishnan Sitaraman said in the report.