India’s securitisation issuance at all-time high of `2.35 trn in FY25

Highlights

Mumbai: India’s total securitisation issuance reached a record high of Rs2.35 trillion ($27 bn) in fiscal 2025, with about 22 per cent allocated to...

Mumbai: India’s total securitisation issuance reached a record high of Rs2.35 trillion ($27 bn) in fiscal 2025, with about 22 per cent allocated to residential mortgage-backed securities (RMBS), a report has said. The bulk of the RMBS issuance has been through bilateral assignments, according to the data compiled by S&P Global Ratings. Pass-through certificate structures form a significantly smaller segment of the RMBS market compared to their share in India’s overall securitisation market.

“In our view, the first RMBS transaction announced by RMBS Development Co. Ltd. (RDCL) could improve investor confidence and pave the way for further issuance based on pass-through certificates (over bilateral assignments), in line with typical structures in global securitisation markets,” the report said.

It further emphasised that India could draw more domestic and offshore investors into its mortgage securitisation market as the country has emerged as one of the fastest-growing global economies. It has favourable demographics, rapid urbanisation, and strong policy support to meet its growing housing demand.

“This has propelled housing market growth. New residential mortgage origination volumes rose about 40 per cent between fiscal years 2020 and 2025 (years ended March 31),” the report said.