{"id":6211,"date":"2020-07-15T01:44:51","date_gmt":"2020-07-15T01:44:51","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=6211"},"modified":"2020-07-15T01:44:51","modified_gmt":"2020-07-15T01:44:51","slug":"securitisation-volume-contracts-85-in-q1fy21-remains-vital-tool-for-nbfcs-to-mobilise-liquidity","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=6211","title":{"rendered":"Securitisation volume contracts 85% in Q1FY21; Remains vital tool for NBFCs to mobilise liquidity"},"content":{"rendered":"<p><\/p>\n<div style=\"text-align: justify;\">\n\tIn the first quarter of this financial year FY21, CRISIL in its research note says that securitisation volume plunged 85% to Rs6,200cr. This was hit by slow collections following the lockdown and the loan moratorium offered by lenders in the aftermath of the Covid-19 pandemic. Notably, the contraction comes after 15 months of frenetic activity that was majorly driven by NBFCs, CRISIL adds.<\/p>\n<p>Of the overall securitised volumes, CRISIL&#8217;s data suggests that the Asset-backed securities (ABS) remained the dominant segment comprising 74% of the total.<\/p>\n<p>Also, the rating agency points out that Mortgage-backed securities (MBS) constituted the balance volume. Subsequently, the Direct assignment (DA) route, being the most preferred for the securitisation of MBS deals, accounted for nearly two-thirds of all deals.<\/p>\n<p>However, CRISIL states, in stark contrast with the overall market performance, transactions backed by gold-loan receivables bucked the trend. The number of gold loan originators, too, has risen from two in first three months of fiscal 2020 to five so far this fiscal.<\/p>\n<p>Krishnan Sitaraman, Senior Director, CRISIL Ratings, \u201cDeferment of transactions is along expected lines. Limited disbursements in the first quarter reduced the immediate liquidity needs of some larger, well-capitalised NBFCs. On the demand side, a vast majority of investors are waiting for clarity on economic activity and borrower cash flows and the consequent impact on collections stability.\u201d<\/p>\n<p>According to CRISIL, only marquee players were able to draw some interest, especially from private investors such as insurers and new private banks. Mutual funds have largely stayed away.<\/p>\n<p>Going forward, Rohit Inamdar, Senior Director, CRISIL Ratings, \u201cThere is no doubt that securitisation will remain an important tool for NBFCs to mobilise liquidity. With the phased opening-up of the economy, we expect the current quarter to see more transactions than the first quarter. The overall pace of recovery in transactions will be a function of improvement in economic activity and collection efficiency trends in the retail segment over the next few months.\u201d<\/p>\n<\/div>\n<p><script>\n\/\/disclaimer popup hide\/show<\/p>\n<p>    $('#popup_mobile_reg').keypress(function (e) {\n        var mobileNumber = $(\"#popup_mobile_reg\").val();\n        var regex = new RegExp(\"^[0-9]+$\");\n        var str = String.fromCharCode(!e.charCode ? e.which : e.charCode);\n        if (regex.test(str)) {\n            if (mobileNumber.length <= 9) {\n                return true;\n            }\n        }\n        e.preventDefault();\n        return false;\n    });\n    $(document).ready(function () {\n        $(\".disclaimer_btn\").click(function () {\n            createCookie(\"disclaimer\", \"yes\", '365');\n        });\n        if (getCookie(\"disclaimer\") == 'yes') {\n            $('.cookies_div').css(\"display\", \"none\");\n            $('.cookie-bar').css(\"display\", \"none\");\n        } else {\n            $('.cookies_div').css(\"display\", \"block\");\n            $('.cookie-bar').css(\"display\", \"block\");\n        }\n        $(\"#checkbox-cb-id\").click(function () {\n            $(\"#main\").css('margin-top', '72px');\n        });\n    });\n    function createCookie(cookieName, cookieValue, daysToExpire)\n    {\n        var date = new Date();\n        date.setTime(date.getTime() + (daysToExpire * 24 * 60 * 60 * 1000));\n        document.cookie = cookieName + \"=\" + cookieValue + \"; expires=\" + date.toGMTString() + \"; secure;\";\n    }\n    function getCookie(name) {\n        var nameEQ = name + \"=\";\n        var ca = document.cookie.split(';');\n        for (var i = 0; i < ca.length; i++) {\n            var c = ca[i];\n            while (c.charAt(0) == ' ')\n                c = c.substring(1, c.length);\n            if (c.indexOf(nameEQ) == 0)\n                return c.substring(nameEQ.length, c.length);\n        }\n        return null;\n    }\n\n\n\n    \/*$('.foot_ga a').click(function() {        \n     var label = $(this).html();\n     var action = $(this).parent().attr(\"data-id\");\n     pushGoogleAnalytics('footer', action, label, 'event '+label);\n     });*\/\n\n\n\n    !function (f, b, e, v, n, t, s) {\n        if (f.fbq)\n            return;\n        n = f.fbq = function () {\n            n.callMethod ?\n                    n.callMethod.apply(n, arguments) : n.queue.push(arguments)\n        };\n        if (!f._fbq)\n            f._fbq = n;\n        n.push = n;\n        n.loaded = !0;\n        n.version = '2.0';\n        n.queue = [];\n        t = b.createElement(e);\n        t.async = !0;\n        t.src = v;\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s)\n    }(window,\n            document, 'script', 'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n\n    fbq('init', '139439933088582');\n    fbq('track', \"PageView\");\n\n<\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.indiainfoline.com\/article\/news-top-story\/crisil-securitisation-volume-contracts-85-in-q1fy21-remains-vital-tool-for-nbfcs-to-mobilise-liquidity-120071400502_1.html\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the first quarter of this financial year FY21, CRISIL in its research note says that securitisation volume plunged 85% to Rs6,200cr. This was hit by slow collections following the lockdown and the loan moratorium offered by lenders in the aftermath of the Covid-19 pandemic. Notably, the contraction comes after [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1877,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-6211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/06\/1543482166-5093.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/6211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6211"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/6211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/1877"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}