Citi India Boosts Liquidity Strategy with $1 Billion Asset-Backed Securities Purchase

Citigroup Inc.'s India unit is set to purchase a record $1 billion in asset-backed securities by the end of the fiscal year, tripling its current portfolio. This move comes as domestic lenders seek liquidity amid sluggish deposit growth. Citi India expects the country's total securitization volume to reach $30 billion in the fiscal year ending March 31, 2026. The bank plans to focus on asset-backed securities linked to retail loans, including vehicle loans, personal loans, and small business loans. This expansion into the securitization market reflects the growing trend among Indian lenders to improve their credit deposit ratios and explore new liquidity avenues.

 

Source: Bloomberg News