Citi India has more than doubled its asset-backed securities (ABS) portfolio to nearly $1 billion, accelerating growth in India’s evolving securitization market. This move supports liquidity for lenders and entices investors, marking a key milestone ahead of projected further expansion in 2026.
Citi India is rapidly expanding its asset-backed securities (ABS) portfolio, reaching close to $1 billion in the last two years, well ahead of its internal targets set in early 2025. The growth is driven by increased originations from non-bank lenders and strong investor appetite for diversified debt products, especially from banks and mutual funds.
ABS deals, locally known as pass-through certificates, cover a broad range of loans including consumer credit, mortgages, and lending to small and medium enterprises (SMEs). Citi’s strategy focuses on purchasing bundled loan pools to improve liquidity in a relatively nascent Indian securitization market.
K Balasubramanian, CEO and Banking Head of Citi India, notes this milestone as an all-time high and expects further portfolio growth in 2026, acknowledging challenges such as interest rate sensitivity and credit risks in consumer lending. India's securitization volumes are estimated to grow 10% year-on-year to ₹1.25 trillion ($14.1 billion) in H1 fiscal 2026, signaling substantial market potential.
Key Highlights:
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Citi India’s asset-backed securities book nears $1 billion, doubling in two years
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ABS growth fueled by non-bank lender originations and investor demand from banks, mutual funds
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Portfolio includes diverse secured loans: consumer loans, mortgages, SME credit
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Market still nascent; Citi aims to boost liquidity and investor confidence
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Challenges include fixed-rate investor preference, interest rate volatility, and credit quality risks
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Indian securitization market growing steadily, with 10% YoY volume rise expected in early fiscal 2026
Sources: Moneycontrol, Bloomberg, Business Standard