Abstract

With escalating aspirations of Indian consumers, nowadays credit growth is taking place at an unparalleled pace and all together the much slower pace of deposit mobilization is inadequate to keep the growth momentum going. In such state of affairs, banks and non-banking finance companies strapped for funds need to identify alternate sustainable funding sources to supplement existing. Securitization is an ultimate option for originators allowing them to sustain growth, leverage existing capital and manage risks. Investors benefit by accessing a constant supply of highly rated instruments tailored to their requirements and offering better yields. This paper is concerned with the securitization of standard assets under RBI Guidelines issued in Feb. 2006 & developing business for banking industry.

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