Crisil sees good times for retail securitisation
Mumbai: The Credit Rating and Information Services of India (Crisil) said that the Indian retail securitisation market is booming. It said that over the last year, asset-backed securitisation (ABS) and also mortgage-backed securitisation (MBS) have picked up pace intensively. Furthermore, the rating agency expects the ABS market to grow at around 40 to 50 per cent over the next few years and MBS issuances to double in volumes within the next two years.

Crisil estimates that securitisation of retail loans has increased to Rs 5,460 crore in 2002-03 from Rs 4,300 crore in 2000-01, registering an annualised growth of 256 per cent.

Securitisation is increasingly becoming an important source of funding in the auto finance market, says Crisil. Securitisation as a proportion of disbursements for the top ten players in the auto finance market has increased to 13.3 per cent in 2002-03 from 2.7 per cent in 2000-01.
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Banks recover Rs 436 crore
New Delhi: Public sector banks have issued 32,043 notices under the Securitisation Act till May 2003 to recover an outstanding amount of Rs 11,447 crore. The recoveries by the state-run banks till May were Rs 436 crore from 8,676 cases.

Nine financial institutions served notices to 182 companies for outstanding dues of Rs 946 crore till February 2003. The recoveries by FIs till end February were Rs 25.2 crore.

Union Bank of India tops the list of 27 public sector banks recovering Rs 117.51 crore. The bank had issued 1,388 notices aggregating Rs 486.34 crore.

Industrial Development Bank of India (IDBI) had issued notices to 41 borrowers till March 31 to recover Rs 1,459 crore. ICICI Bank has sent around 50 notices to recover over Rs 2,500 crore.
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