Navya Trust May 2024 (Originator: Piramal Finance Limited) Rating reaffirmed at 'Crisil AAA (SO)'
Rating Action
*As after March-2026 payout #Indicates door to door tenure; actual tenure will depend on the level of prepayments in the pool, exercise of the clean-up call option and extension due to moratorium Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to annexure for Details of Instruments |
Detailed Rationale Crisil Ratings has reaffirmed its rating for Series A1 Pass-Through Certificate ('PTCs') issued by ‘Navya Trust May 2024’ at ‘Crisil AAA (SO)’. The transaction is backed by housing loan receivables originated Piramal Finance Limited (PFL; rated ‘Crisil AA+/Stable/Crisil A1+’).
The reaffirmation follows the build-up of credit cover available to PTCs holders on account of amortisation and healthy pool performance. The rating is based on the credit support available to the Series A1 PTCs, credit quality of underlying receivables, PFL’s origination and servicing capabilities, the payment mechanism, and soundness of the transaction’s legal structure. |
Payment structure The transaction has a ‘Par with EIS’ structure. Series A1 PTC holders are promised interest and principal payouts (promised to the extent of 95% of the monthly billed principal) on a monthly basis. Investor payouts for PTCs are supported by cash collateral and subordination of excess interest spread (EIS). PFL will continue to service loan contracts in the pool as the servicing agent. |
Adequacy of credit enhancement The Credit enhancement available in the transaction structure to support promised PTCs payouts is as below:
Based on Crisil Ratings assessment, the total credit enhancement available in the transaction (internal – in the form of EIS, principal overcollateral; and external – in the form of cash collateral) provide loss absorption against stressed shortfalls in the pool, commensurate with the ratings
On February 25, 2026, Crisil Ratings had reaffirmed ratings on Series A1 pass-through certificates (PTCs). The transaction was eligible for a credit collateral reset; however the investor consent (required under RBI regulations) was awaited.
PFL has received the investor’s consent for the reset of credit collateral. Following the reset, the revised total cash collateral stands at Rs. 1.81 crore (7.7% of future pool principal as of March’26). Given the pool performance and high amortisation of around 37.8%, even after the reset the credit cover available to the PTCs remains commensurate with the outstanding ratings of the instruments. |
Key Rating Drivers & Detailed Description Strengths:
Weakness:
[1]MCR = Monthly collections in the pool / Monthly billings |
Rating Sensitivity factors Upward factors
Downward Factors
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Liquidity: Strong for Series A1 PTCs Liquidity position is strong given that the credit enhancement (internal and external combined) in the structure is above 1.5 times the estimated base shortfalls on the residual pool cash flows. |
Quality of the asset pool and strength of cashflows The securitisation transaction is backed by a pool of receivables from housing loans originated by PFL. As of the pool cut-off date (31-May-2024), the pool loans had a weighted average seasoning of 17.4 months, a weighted average interest rate of 11.5%, a weighted average LTV ratio of 42.1%, a weighted average original tenure of 13.7 years, and an average original loan amount of Rs 11.0 lakh. The top 3 states (Uttar Pradesh, Tamil Nadu, and Maharashtra) contributed 76.4% of the initial pool principal. All the underlying pool loans were current on repayment as on the cut-off date.
Pool Performance Summary (as after March 2026 payouts)
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Rating assumptions Background:
Assumptions:
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About the company- Originator/Servicer profile Founded by Mr Ajay Piramal, Piramal Finance is an Upper Layer NBFC (non-banking financial company). The company had the housing finance company (HFC) licence earlier. On April 04, 2025, Piramal Finance received certificate of registration to commence the business of NBFC-ICC without accepting public deposits. Piramal Finance thereafter continued to operate as an NBFC. In the financial services business, the company focuses on providing retail loan products such as home loans, loans against property, used car loans, personal loans and small business loans. It also provides wholesale loans with focus on both real estate and non-real estate sectors.
For the first half of fiscal 2026, the company reported net profit of Rs 603 crore on total income of Rs 5,629 crore, against net profit of Rs 485 crore on total income of Rs 9,913 crore in fiscal 2025. |
Key Financial Indicators
*Annualised |
Quality and experience of servicer PFL; ‘Crisil AA+/Stable/Crisil A1+’ will continue to service loans assigned to this trust. PFL has originated several securitisation transactions in past. Servicing has been done, and reports have been shared across all these transactions in a timely manner |
Risks and concerns for investors and mitigating factor The total credit enhancement available in the transaction (internal - in the form of EIS; and external in the form of cash collateral) together can mitigate against shortfalls in collection from the pool even after stressing them commensurate with the rating assigned to the PTCs. Crisil Ratings has adequately factored key risks in the transaction including Credit & Market (as highlighted in rating assumptions section), Counterparty and Legal risks. Legal risks are assessed based on detailed analysis of transaction documentation. Risk factors from counterparties are mentioned in the table below: |
Counterparty Details
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A summary of key terms of servicer contract The key points on the role of the servicer covered as part of the transaction documents are as below:
The servicer shall receive servicing fees which shall be paid by the trustee in accordance with the Waterfall Mechanism as per the transaction documents.
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Provision for appointment of back-up servicer The Trustee (acting on the instructions of the investors) as per the terms of the Servicer Agreement and upon the occurrence of Servicer’s Event of default, shall retain the right to appoint an alternate service |
Performance of outstanding rated transactions Crisil Ratings has outstanding ratings on instruments issued under 4 securitisation transactions backed by PFL-originated mortgage loans. Crisil Ratings receives monthly performance reports pertaining to these transactions. CCR is in the range of 98.9%-99.6%. |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
#PTC Tenure vary on the basis of prepayments, interest rate movement in the pool and exercise of the clean-up call option |
| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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