India's securitisation market demonstrated resilience in the first quarter of FY27, with issuances reaching approximately ₹600 billion. According to reports from Business Standard, while volumes remained largely flat on a sequential basis, they showed strong year-on-year growth of more than 20%. This performance indicates that the market has successfully sustained the elevated issuance levels that characterized FY26, suggesting a shift toward more stable, long-term market dynamics.
The Reserve Bank of India has introduced new regulatory measures for bank asset disposal, mandating that immovable assets acquired against bad loans must be disposed within seven years through public auction conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act. As reported by Business Standard, RBI has also barred banks from selling such assets back to borrowers or related parties as defined under the Insolvency and Bankruptcy Code, 2016. If an SNFA is put to bank's own use, it will cease to be classified as an SNFA and will instead be recorded as a fixed asset or under another relevant accounting head.
The latest quarter's performance reinforces a significant structural shift in India's securitisation market. As reported by Business Standard, the strong first-quarter volumes suggest the market is moving beyond cyclical expansion towards a deeper and more resilient funding ecosystem. This transition represents a fundamental change in how the securitisation market operates, with growth becoming more sustainable and less dependent on temporary market conditions or economic cycles.
The sustained high issuance levels and structural improvements in the securitisation market point to a more mature funding environment. According to Business Standard, the performance in Q1FY27 reinforces the view that the securitisation market is transitioning from cyclical growth to a structurally stronger and deeper funding ecosystem. This development suggests that the market is developing the capacity to support long-term financing needs more effectively than in previous periods, supported by RBI's new regulatory framework ensuring proper asset disposal procedures.
