Home / Finance / News / Finance companies sell Rs 25,000 cr loans in Q2FY22, up 65% year-on-year

Finance companies sell Rs 25,000 cr loans in Q2FY22, up 65% year-on-year

Activity rises as investors' fears over collections ebb

credit, lending, loans, support, fiscal stimulus, money

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Illustration: Ajay mohanty

2 min read Last Updated : Oct 12 2021 | 2:00 AM IST

Non-banking finance companies and housing finance firms (HFCs) sold loans worth Rs 25,000 crore through the securitisation and direct assignment (DA) in the second quarter (Q2FY22), up 65 per cent over the same period last year. Sequentially, volume of activity was 45 per cent over Rs 17,200 crore in June 2021 quarter (Q1FY22).

Reflecting receding investor concerns about collections, the share of DA moved back to the normal trend of two-third of volumes Q2FY22 from 50 per cent in quarter ended June 2022 (Q1FY22), according to rating agency Icra.

The split between through securitisation (pass-through certificates, or PTC) and DA

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