The growth extends the trend seen in the previous financial year, when banks sharply reduced their securitisation activity while non-banking entities continued to increase issuances. NBFCs accounted for nearly the entire market during the quarter, with overall volumes originating from the segment growing 27 per cent over the corresponding period of FY26.
Another notable trend during the quarter was the surge in gold loan securitisation. Gold loans accounted for around 28 per cent of total securitised volumes, making them the largest asset class in the market. The share is the highest seen since 2020-21, immediately after the onset of the Covid-19 pandemic, with the momentum that emerged in the second half of FY26 continuing into the first quarter of the current fiscal.
“The first quarter of 2026-27 has witnessed healthy securitisation volumes, reflecting good demand and continued reliance of originators on securitisation as a liquidity and funding tool,” said Sachin Joglekar, Vice President and Co-Group Head, Structured Finance Ratings, ICRA.
“While gold loan securitisation emerged as a new dominant class, the microfinance sector reported some stability in operations with increasing disbursements and improved collection efficiencies, which in turn has brought back investor interest in this segment. ICRA projects the annual securitisation volumes to be in the range of Rs 2.6-2.7 lakh crore in 2026-27, with non-banking entities driving the growth from the level of Rs 2.5 lakh crore in 2025-26.”
Vehicle loans remained the second-largest asset class, accounting for about 25 per cent of securitised volumes during the quarter. Mortgage loans and microfinance each contributed around 13 per cent of the overall market.
ICRA also observed some moderation in securitisation volumes backed by MSME and business loans, reflecting investor caution amid headwinds in the segment.
In terms of transaction structure, direct assignments (DA) accounted for 53 per cent of total securitisation volumes during the quarter, exceeding pass-through certificates (PTCs), which made up the remaining 47 per cent. This marks a reversal from the trend seen over the previous two years. Gold loans and mortgage loans were largely securitised through the DA route, while vehicle and microfinance loans continued to be predominantly sold through PTCs.