More Stories

Informist, Monday, Jun. 8, 2026

 

--S&P: Securitisation to be strong financing route for India NBFCs FY27 

--S&P:See NBFCs tapping securitisation due to high bank credit-deposit ratio 

--S&P:See India NBFCs tapping securitisation due to lower offshore borrowing 

--S&P: See India NBFCs tapping securitisation due to rising corp bond yields 

--S&P:Tight underwriting in India should cut credit stress in securitisation 

--S&P:More liquidity risk in securitisation if RBI opts to restructure loans 

 

MUMBAI – Securitisation is expected to remain a strong method of financing for Indian non-banking financial companies in 2026-27 (Apr-Mar), S&P Global Ratings said in a release Monday. High credit-to-deposit ratios of banks, a rise in corporate bond yields and lower external borrowing due to a fall in the rupee are likely to push these entities to securitisation, Vidhya Venkatachalam, credit analyst at the ratings agency, said in the note. 

 

Total securitisation hit a record INR 2.55 trillion in FY26, up 8.5% on year, the note said. This rise was primarily due to originations by shadow lenders in the same period.

 

In case of disruptions due to the West Asia war and a weak monsoon, the Reserve Bank of India could consider targeted restructuring of loans, which could subsequently increase the liquidity risk in securitisation, the note said. S&P expects such measures only as a response to "significant downside risks, with a wider economic impact." 

 

Originations and asset performance are largely stable, but may dampen in some asset classes if a prolonged conflict in West Asia spikes fuel prices, disrupts supply chains, and weakens purchasing power, the note said. However, robust standards in underwriting could limit credit risk in securitisation to an extent, it said. In early May, the ratings agency had cut its GDP growth forecast for India in FY27 to 6.6% from 7.1% due to headwinds from the West Asia war.

 

Small and unsecured consumer loans, micro loans against property, and commercial vehicles loans could be the first to see credit stress, the ratings agency said. Stress in secured loan products such as those in vehicle finance and affordable housing could follow gradually. If weak rainfall squeezes rural income, originations in tractors, farm equipment, two-wheelers, and consumer durables could soften, but the share of these asset classes in overall securitisation is low, the note said.

 

Consistent originations from large vehicle financiers aided high securitisations backed by vehicle finance, which was about 40% of total issuances in FY26. Issuances backed by gold loans rose to 15% of total securitisations in FY26 due to more originations, up from 2% the previous year, it said.  End

 

Reported by Cassandra Carvalho

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.