Mumbai: India’s securitisation market is expected to face hurdles for the next one-two quarters owing to disruptions caused by the covid-19 pandemic, rating agency Icra said in a statement.
In FY20, non-banking financial institutions (NBFCs) and housing finance companies (HFCs) raised around ₹1.97 trillion, similar to the securitisation volumes seen in FY19.
However, due to the ongoing nationwide lockdown that has severely impacted the income generation of a large number of borrowers, the NBFCs are likely to witness a spike in delinquencies across all asset classes, especially loans disbursed by micro finance institutions (MFIs), the rating agency said.