has hit the income generation of a large number of borrowers. Non-banking financial companies (NBFCs) are likely to witness a spike in delinquencies across asset classes, especially loans disbursed by micro finance institutions (MFIs), which could result in challenges in sell-down of their portfolio. Once the lockdown
eases and the economy starts to recover, securitisation
would again emerge as an important source of funding for NBFCs and HFCs in the long run.
Abhishek Dafria, vice-president and sector head of structured finance at ICRA, said the securitisation
market in FY20 at Rs 2 trillion was almost the same as in FY19.