India's Securitisation Market May Hit Rs 2.7 Lakh Crore in FY27: ICRA
ICRA expects India's loan securitisation market to grow to about Rs 2.7 lakh crore in FY27, a trend that widens funding options for large retail and vehicle financiers such as Shriram Finance.
What ICRA's securitisation forecast covers
Rating agency ICRA expects the pool of loans sold through securitisation, where a lender packages a batch of loans and sells them to banks or other investors to raise fresh money, to grow to around Rs 2.7 lakh crore in FY27. Securitisation is one of the main ways large non-bank lenders fund new loans once they have used up their own capital and deposits, alongside straight bank borrowing and bond issuance.
Why a growing securitisation market matters for NBFC stocks
When the securitisation market expands, it usually means more banks and investors are willing to buy pools of retail and vehicle loans, which gives large non-bank lenders another channel to raise money, often at a lower cost than a straight bank loan. That matters most for financiers with big, seasoned loan books that are attractive to buyers, since it can support faster loan growth without needing an equal rise in the lender's own capital base.
Which stocks, and why
Shriram Finance is the clearest name to watch here. It is one of India's largest vehicle and MSME financiers and has long relied on securitisation and loan-pool sales as a core funding tool alongside deposits and bond issuance. A deeper, larger securitisation market gives it more buyers to sell loan pools to and more room to keep growing its book without straining its own balance sheet. The link is about funding access and cost rather than a change to any single quarter's results, so it plays out gradually rather than all at once.
What to watch
The clearest confirmation would show up in Shriram Finance's own funding-cost disclosures and securitisation volumes in coming quarters, alongside Reserve Bank of India data on outstanding securitised assets. Readers should also watch overall bank credit growth and bank appetite for buying retail loan pools, since a slowdown in bank balance-sheet growth would narrow this funding channel even if ICRA's market-size estimate for FY27 holds.
Sources
Frequently asked questions
What is loan securitisation?
It is when a lender packages a batch of loans it has already made and sells that pool to banks or other investors to raise fresh money to fund new lending.
Why does a bigger securitisation market help Shriram Finance?
Shriram Finance uses securitisation as a major funding channel for its vehicle and MSME loans, so more buyers for loan pools can mean cheaper and more plentiful funding for future growth.
Does this ICRA forecast affect Shriram Finance's results immediately?
Not immediately. It points to a gradual funding-cost benefit that would show up over several quarters rather than a one-time earnings change.
Informational only, not investment advice. Sentiment reflects news exposure, not a buy/sell recommendation or price forecast. Do your own research and consult a licensed professional.
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