Abhishek Dafria, Senior Vice President and Group Head of Structured Finance Ratings at ICRA, highlighted the robust performance of Small Finance Banks (SFBs). Dafria noted that SFBs are experiencing substantial growth in their gross advances, with an estimated rate of around 24-25%. This trend is expected to persist in the near future, driven by the strong credit appetite prevalent in the country. The statement underscores the positive outlook for Small Finance Banks and their significant contribution to the expanding credit landscape.
In FY2024, Small Finance Banks (SFBs) are anticipated to significantly elevate funds through securitisation, surpassing Rs 10,000 crore compared to the previous fiscal’s Rs 6,400 crore. ICRA reports that this projection encompasses both pass-through certificate issuance and direct assignments. Notably, the third quarter of FY2024 marked a milestone with record-high securitisation volumes reaching approximately Rs 4,200 crore. As a result, SFBs are poised to achieve a substantial market share, with expectations of reaching 6%, a notable surge from sub-2% levels observed before FY2022. This data underscores the growing influence of SFBs in the securitisation market and their increasing role in fundraising activities.
Abhishek Dafria, Senior Vice President and Group Head – Structured Finance Ratings at ICRA, said, “The securitisation market has traditionally been dominated by non-banking financial companies and housing finance companies acting as originators and thus the emergence of SFBs has helped in expanding the market.
