Covid-19 surge may hit securitisation in the near term, says Crisil

FY21 volumes below Rs 1 trn as against Rs 1.9 trn in FY20

Securitisation volumes may be hit in the near term due to rising Covid-19 cases and the resultant restrictions being imposed in a number of states, according to rating agency Crisil.

Many non-banking finance companies (NBFCs) may be compelled to refocus their energies on collections, and fresh disbursements could take a back seat.

The rating agency said containment measures, such as a temporary suspension of movement (local and regional) and business activities, could inhibit borrower cash flows. If these impact collection efficiencies, they may again deflate returning investor confidence and inhibit securitisation volumes in the near term.

The securitisation covering sale of pooled assets