India’s asset‑backed securities market hit a record as global banks increase purchases. Foreign banks captured about 35% of total issuance in the year ended March, up from 28‑30% in previous years, says Crisil Ratings’ chief ratings officer. This shift highlights the growing confidence of international investors in India’s regulatory framework and credit quality.

Total A‑B debt sales reached 1.53 trillion rupees ($16 billion) in that period, translating into roughly $5.6 billion of purchases by overseas lenders. The surge reflects investors’ appetite for exposure to India’s fast‑growing economy and its expanding credit market. Such inflows bolster liquidity and strengthen the market’s resilience against volatility.

For Indian issuers, higher foreign participation signals deeper liquidity and may lower funding costs. For global banks, the uptick offers a steady stream of new assets and diversification. The trend underscores India’s growing importance as a sourcing ground for structured finance. This development positions India as a key destination for international structured‑finance flows.

Market analysts note that the rise in foreign demand could pressure domestic banks to enhance their own offering of A‑B securities. Competition may drive tighter spreads and push local issuers toward more sophisticated structuring. Regulators will watch how increased participation affects market liquidity and risk profiles in the coming fiscal periods, while maintaining market stability to ensure sustainable growth.