Securitisation transactions doubled to Rs 31,500 crore on-year in the first quarter (Q1FY19) as deals backed by loan receivables that do not qualify for priority sector (non-PSL) rocketed following clarity on the applicability of Goods and Services Tax (GST).
Says Krishnan Sitaraman, Senior Director, CRISIL Ratings, “Till now, PSL receivables had ruled the securitisation market roost. But due to a rise in transactions involving non-PSL receivables, and increase in demand for priority sector lending certificates (PSLCs), non-PSL share increased to 64% on-year in first quarter of fiscal 2019 from 40%.”
Mortgages continued to be the driver of non-PSL securitisation. The GST Council’s clarification that securitised assets are not liable to pay tax spurred some large mortgage players to tap the securitisation market once again.
