Citi India's $1 Billion Asset-Backed Securities Push: A Game-Changer for Indian Lending

Citigroup Inc.'s India unit is set to make waves in the country's nascent securitization market, planning to triple its asset-backed securities portfolio to over $1 billion by March 2026. This strategic move comes as Indian lenders seek liquidity amid sluggish deposit growth. The bank will focus on retail loan-linked securities, with vehicle loans being the largest asset class. This expansion aligns with India's growing securitization market, which saw an 80% increase in volume to ₹680 billion in Q3. Citi's initiative is expected to boost market liquidity and encourage more players to enter this evolving financial landscape.

 

Sources: Moneycontrol, Bloomberg, Business Standard