NBFCs power 2026 securitisation boom; gold loans lead

Record start to the year, led by NBFCs

India’s securitisation market posted its strongest first-quarter performance, led overwhelmingly by non-banking financial companies (NBFCs), according to Crisil Ratings. Issuances in the April-June 2026 quarter rose 22% year-on-year to around ₹60,000 crore. Crisil said more than 98% of the volume came from NBFCs, marking a clear break from earlier peak periods when banks also contributed meaningfully. The mix of underlying assets also shifted in a way that highlights changing retail credit demand. Gold loans emerged as the largest securitised asset class during the quarter, overtaking vehicle loans. The quarter was marked by robust investor demand, alongside healthy retail credit growth, as cited in the report. The data points to securitisation remaining a significant funding channel for NBFCs.

What changed in the April-June 2026 asset mix

Crisil highlighted a notable shift as gold loans rose to the top of the securitisation mix for the quarter. Gold loans accounted for around 31% of total securitisation volume in April-June 2026. Vehicle loans, which had been the leading asset class in many past periods, moderated to about 26%. The moderation was linked to fewer issuances by a large originator, as noted by Crisil. The change is important because it shows that issuance patterns can swing sharply based on large originators’ funding plans. It also underlines how investors are willing to buy pools beyond the traditionally dominant segments. The quarter’s dominance by NBFC-originated transactions also indicates how securitisation supply is being shaped by non-bank lenders. And it sets the context for the broader FY2026 trend, where NBFCs expanded their role further.

FY2026 hits an all-time high in transaction value

Beyond the quarterly data, Crisil reported that the Indian securitisation market reached a record ₹2,55,000 crore in fiscal 2026. The agency said this milestone came as transaction values climbed to an all-time high for the year. The reported fiscal performance included a 9% increase in deal value for FY2026. A large part of this growth was tied to a year-on-year surge in NBFC originations of 30%, which offset weaker activity from the banking sector. The January-March quarter alone saw more than ₹65,000 crore in transactions, up 20% from the same period a year earlier. This late-year momentum showed that securitisation volumes remained resilient even as originator composition changed. It also reinforced securitisation’s role as a funding avenue when bank participation is limited.

Banks’ share shrinks sharply, NBFCs fill the gap

Crisil’s FY2026 data showed a steep reduction in bank-originated securitisation. Banks’ share of total originations fell to just 3% in fiscal 2026, down from 26% in the preceding year. This shift meant NBFCs effectively became the primary suppliers of securitised pools to investors. In another Crisil data set covering the first nine months of the fiscal, banks still recorded originations growth of 5% year-on-year to ₹1,87,000 crore compared with ₹1,78,000 crore in the same period last fiscal. But the quarter-level mix increasingly skewed away from banks, according to Crisil’s observations. In the third quarter, banks’ contribution was described as negligible, even though they had played a meaningful role in the corresponding quarter of the previous year. The gap was bridged by NBFCs ramping up issuance volumes. Overall, the numbers point to a decisive shift in who brings securitisation supply to the market.

Wider participation, but concentration still visible

Crisil noted that more than 190 originators participated in FY2026 securitisation activity. Despite this broader participation, market concentration remained, with top players continuing to account for a large share. The top players’ share dipped to 65% in FY2026, as reported by Crisil, indicating some diversification at the margin. In the first nine months of the fiscal, around 200 entities participated, up from roughly 150 in the corresponding period last year. The expansion in originator count was largely led by NBFCs, pointing to wider adoption of securitisation as a funding tool across the sector. In another quarterly snapshot, Crisil reported around 90 originators participating in the first quarter of FY2026. Separately, the top 20 NBFCs accounted for about 67% of volumes in that quarter. These data points together suggest the market is widening, but large NBFCs still set the pace.

How volumes and shares looked across recent quarters

Crisil’s quarterly updates also provide a view of how originator mix and volumes evolved through FY2026. In the third quarter alone, securitisation volumes stood at nearly ₹63,000 crore, broadly in line with the corresponding quarter of the previous fiscal. NBFC originations recorded year-on-year growth of about 35% in that third quarter, supported by issuance volumes in gold loans and vehicle loan pools. As a result, NBFCs accounted for nearly 97% of total retail securitisation volumes during the quarter, compared with about 71% in the same period last year. Over the first nine months of fiscal 2026, securitisation volumes rose to ₹1,87,000 crore, as cited in the Crisil report. Asset composition also shifted over this period, with vehicle loans still the largest share but easing to around 43% from 48% a year earlier. These figures show that both the size and composition of securitisation supply can change quarter to quarter.

Instrument mix: PTC continues to dominate

Crisil’s data for the first nine months of the fiscal showed pass-through certificate (PTC) transactions dominated, accounting for around 62% of overall volumes. A separate quarterly snapshot for Q1 FY26 also referenced an instrument mix of PTC at 58% and DA at 42%. These instrument splits matter because they shape how investors evaluate structures, credit enhancement, and cash-flow distribution. The persistence of PTC dominance indicates the market preference for structures that investors are comfortable with across cycles. It also suggests that originators are aligning issuance formats with investor demand to keep funding channels open. While the article data includes detailed asset-class splits in different snapshots, the consistent thread is that structure choices remain a key part of issuance strategy. The continuing prominence of PTCs is one of the clearer, stable signals in the data. And it provides context for why investor appetite has stayed firm as the originator mix changes.

Key data points at a glance

Why this matters for funding and investor appetite

The dominance of NBFCs in issuance suggests securitisation is increasingly central to non-bank funding strategies. Crisil also framed the trend as NBFCs enhancing securitisation’s appeal as an alternative funding source, including for mid-sized players, as highlighted by Aparna Kirubakaran, Director at Crisil Ratings. The sharp decline in banks’ share to 3% in FY2026 shows that market supply is not evenly distributed across lender types. For investors, the shift toward gold loans in April-June 2026 signals a change in what collateral pools are coming to market, at least in that quarter. For originators, the data on top players’ share dipping to 65% in FY2026 indicates some broadening, even if large NBFCs remain dominant. The increase in the number of originators to more than 190 in FY2026 also suggests securitisation is becoming a more common tool. The record FY2026 total of ₹2,55,000 crore places these quarterly mix shifts within a larger expansion in market scale. And the repeated references to robust investor demand help explain how higher volumes were absorbed.

Conclusion

Crisil Ratings’ updates point to a securitisation market where NBFCs have become the principal drivers of supply, and where collateral mix can shift quickly, as seen with gold loans leading April-June 2026 volumes. The record ₹2,55,000 crore in FY2026 and the more than ₹65,000 crore seen in the January-March quarter underscore the market’s growing scale. Banks’ reduced participation, with a 3% share in FY2026, highlights how the originator landscape has changed compared with the prior year. The rise in the number of originators to more than 190 suggests wider adoption even as large NBFCs retain significant share. Investors and issuers will continue to watch quarterly data for how asset mix, instrument mix, and participation evolve. Any further shifts in bank-originated volumes and large-originator issuance patterns will be key signposts in upcoming Crisil updates.