In Q1FY25, the market for retail asset securitization shrank by around 13% as compared to the same time last year. The abundance of liquidity offered by originators may be the main cause. The volume of retail asset securitization transactions has been influenced by a number of factors, including high credit growth, originators’ desire to diversify their funding sources, the ongoing rise in investor demand for retail Priority Sector Lending (PSL) assets, and confidence in the performance of rated transactions—which has been strengthened by the stability shown during the pandemic. Several universal banks entered the securitization market this quarter.
Retail_Asset_Securitisation_-_Volumes_at_Rs_48,000_crore_in_Q1FY25
