Fears of stricter lockdown amid the second wave of coronavirus infections may affect asset quality of retail loans, thereby impacting the fund-raising ability of housing finance and non-banking finance companies through the securitisation route, according to a report.
Securitisation is the process of pooling and repackaging homogenous illiquid financial assets into marketable securities that can be sold to investors.
Securitisation volume, which stood at Rs 85,000-90,000 crore during the financial year 2020-21, is expected to rise by 40-50 per cent year-on-year in the current fiscal (2021-22), Icra Ratings said in a report.
NBFCs and HFCs securitised volume stood at Rs 40,000 crore of their loans assets in the fourth quarter of fiscal 2020-21, similar to the corresponding quarter of FY2019-20, it added.