May 29: India’s securitisation market is showing strong structural resilience in FY26, supported by steady credit demand, diversified investor participation, and improving asset quality across key lending segments, according to industry observations.
Market activity has remained robust as financial institutions continue to use securitisation as an important tool for liquidity management and balance sheet optimisation. The trend reflects growing confidence in structured finance instruments, particularly in retail asset classes such as housing loans, vehicle finance, and microfinance portfolios.
Industry participants note that investor appetite for securitised paper has remained healthy, driven by stable returns and improved credit enhancement structures. The participation of mutual funds, banks, and non-banking financial companies (NBFCs) has further strengthened market depth and liquidity.
Analysts highlight that the sector’s structural strength is being reinforced by better underwriting standards, improved collection efficiency, and stronger risk management practices among originators. These factors have contributed to lower delinquency rates and enhanced investor confidence in securitised assets.
The expansion of India’s credit ecosystem, along with continued formalisation of the economy, has also supported growth in securitisation volumes. As lenders increasingly seek diversified funding channels, securitisation is expected to remain a key instrument for credit flow in FY26.
Experts suggest that the market’s long-term outlook remains positive, although it remains sensitive to interest rate movements and macroeconomic conditions. Continued regulatory clarity and strong credit performance are expected to play a crucial role in sustaining momentum.
Overall, India’s securitisation market is entering FY26 on a stable footing, underpinned by structural improvements and a broadening investor base.