Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
money
September 18, 2021

Volumes For Securitisation Increase As Efficiency In Collection Rises: Report

admin Economic Trends

Securitisation volumes have gone up after the first quarter of the fiscal and it is mainly due to the betterment of efficiency in Collection

India Ratings and Research on Friday said securitisation volumes have picked up post the second wave lull in the first quarter of the current fiscal, helped by the improvement in collections.

The agency, however, believes that the recovery from the impact of the second wave is not yet complete.It has witnessed a recovery in average current collection efficiency to 79 per cent in July 2021 from 67 per cent in May 2021 across 143 of its rated securitisation transactions.

“Securitisation volumes have picked up post the second wave lull in Q1 FY22 as investors witnessed the return to normalcy in collection metrics. As investors gain confidence, overall securitisation volumes in FY22 could be better than in FY21,” the agency said in a report. Securitisation is the process of pooling and repackaging of homogenous illiquid financial assets into marketable securities that can be sold to investors.

The report said resumption of economic activities post the second Covid wave improved sentiments and supported the loan performance in June-July 2021 Overdue loans in softer delinquency buckets started performing with the gradual lifting of pandemic-related restrictions and this trend was prominent in the secured asset classes. Given the low number of rated transactions in some of the asset classes (such as tractor loans), the average collection efficiency may not indicate the market level collection efficiency.

The recovery in collections of weak profile borrowers in unsecured loans remain low, possibly as the broader economic and business activities are yet to achieve normalcy. “Overall for the agency rated transactions, the average current collections efficiency had reduced by 16.2 percentage points in April-May 2021 but recovered by 11.6 percentage points in June-July 2021, signifying that the recovery from the impact of the second wave is not yet complete,” it said.

The agency expects intensive collection efforts and improvement in broader business activities in August 2021 along with the momentum in vaccination rate to continue to support the improvement in collections in August and September.

(PTI)

→

5 Per Cent GST To Be Levied On Deliveries By Swiggy And Zomato, No GST Aid To States Beyond 2022 31 Dec Fixed As Deadline For Exporters To Submit Their Tax Returns

Related Posts

start-up

Credit & Capital, Economic Trends

Cash-strapped Pak Secures Deal With IMF To Restore Stalled USD 6 Bn Aid

indian rupee

Credit & Capital, Economic Trends

Investors richer by over Rs 5.77 lakh cr as markets rally

20211208_135038

Credit & Capital, Economic Trends

Mutual Funds Can Resume Investing In International Stocks: Sebi

Movements

  • adobe danDan Durn Appointed As Adobe’s New Chief Financial Officer
  • Vineet Mahajan_Vineet Mahajan Appointed As New CFO Of Avanse Financial Services On Sept 27
  • bharat pet director financeVetsa Ramakrishna Gupta To Lead Bharat Petroleum As Director Finance
  • tender cuts cfoTenderCuts Names Satya Rakesh as New CFO
  • dailmer CFOManish Thakore Helms Daimler India Commercial Vehicles as CFO

Selected Stories

  • start-upCash-strapped Pak Secures Deal With IMF To Restore Stalled USD 6 Bn Aid

    Read more

  • sahil-vaidya-imageOMTV Appoints Sahil Kiran Vaidya As Head Of Business And Strategy

    Read more

  • indian rupeeInvestors richer by over Rs 5.77 lakh cr as markets rally

    Read more

  • 20211208_135038Mutual Funds Can Resume Investing In International Stocks: Sebi

    Read more

  • green energyIndia Needs $223 Bn To Meet 2030 Renewable Capacity Goals: Report

    Read more

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.