Manushree Saggar, Senior Vice President & Group Head, Structured Finance, ICRA Limited

“In line with ICRA’s estimates, securitisation volumes reached Rs. 2.5 trillion in FY2026, driven by sustained participation from retail NBFCs, while contribution from banks remained largely muted. Though the overall securitisation volume growth was small at 4% in FY2026, securitisation volumes of retail non-banks rose by a robust 26%. ICRA expects NBFCs to remain growth drivers, going forward as well.

As for asset classes, loan securitisation by microfinance lenders witnessed a good recovery in FY2026 while the share of other key asset classes, including commercial vehicles and mortgage loans, remained range-bound vis‑à‑vis FY2025. Even though the operating environment remains cautious, NBFCs are expected to continue with the growth momentum in FY2027 and securitisation would remain an important tool for meeting incremental funding requirements. In this backdrop, ICRA expects retail securitisation volumes to grow by 15-20% in FY2027.”