This lender Indiabulls Housing Finance is also looking to raise Rs 5,000 crore through the securitization route in the fourth quarter of the financial year, according to the senior company official.
Securitization is the good process of pooling as well as repackaging homogenous illiquid financial assets into marketable securities that can also be sold to all the investors. Our securitization pipeline is very strong. We should also be able to raise almost Rs 3,000 crore from this wholesale book as well as another Rs 2,000 crore from the retail in this quarter.
They already said securitization transactions worth Rs 2,000 crore have been done so far in this fourth quarter. The fourth quarter is whenever most of the securitization transactions get bunched up to. We had many of the transactions for last December that got carried forward to January.
The securitization constitutes 25 percent of all the non-bank financier’s overall borrowing and on average, this also raises around Rs 2,500 crore per quarter through this route. Overall, in 2020-2021, this has also raised a total of Rs 28,119 crore through equity, bank lines, bonds as well as loan sell-downs.
This securitization market is primarily intended to redistribute this type of credit risk away from the originators to a wide spectrum of all the investors who can simply bear the risk, thus aiding financial stability as well as providing some of the additional sources of the funding.
They already said that in the third quarter of 2020-2021, fresh disbursements stood at Rs 3,458 crore of which retail loan also disbursals constituted 75 percent. This company is also seeing very good traction in loan co-lending as well as expects active sourcing to begin the next quarter with the three other co-lending tie-ups which are also the final stages of integration.