The combined securitization volume through both pass through certificate and direct assignment increased 2.3 times to Rs 17200 crore Q1’2021-22 from Rs 7500 crore in Q1 2020-21. But the share of pledged securities increased from 26 per cent to 59 per cent in the same period.
Whereas housing loan and Loan Against assets remained least impacted and were quick to recover to March 2021 levels, monthly collections in commercial vehicle (CV) loans, SME And microfinance loans also rebounded sharply from the lows seen in May 2021 to over 90% in July 2021. As a result, the incremental slippage in June and July 2021 has also eased, easing asset quality concerns in the Icra-rated pool. , the rating firm said.
ICRA said the collection efficiency of securitized pools generated by NBFCs and HFCs improved in July, owing to focused collection activities of lenders and backed by reduced movement restrictions or lockdowns following the less impact of the second wave of the COVID-19 pandemic.
“The monthly collection efficiencies of ICRA-rated securitized pools across asset classes have improved since June 2021, following the volatility of the second wave of the pandemic,” said Abhishek Dafria, Vice President and Head of Structured Finance Ratings, ICRA. “We do not expect an immediate decline in the collection capacity of retail pools.”
While the threat of another wave of COVID infections remains, ICRA expects that past experiences will better equip state and central governments as well as companies to handle such an eventuality so that economic activity is minimized. disruption can be ensured.
ICRA estimates the quantum of securitization to be around Rs. 1.2 – 1.3 Lakh Crore for FY’2022 which will be an increase of 40-50% from the volumes seen in FY’2021. For the first five months of the financial year, the volumes were around Rs. 28,000 crore which is almost double the quantity seen in the same period last year.