Did India's BFSI Deal Activity Really Triple in 2025?
Synopsis
India's BFSI sector has experienced remarkable growth, with deal activities tripling in 2025. A detailed report by Equirus Capital highlights significant mergers and acquisitions in banking and financial services, showcasing strong performance from non-banking financial companies and public sector banks. Discover how this growth impacts the economy and the future of financial dealings in India.
Key Takeaways
Deal activity in BFSI tripled in 2025.
30 significant deals reported.
Strong performance from NBFCs and public sector banks.
Personal loan disbursements increased significantly.
Investment firms remain bullish on the sector.
New Delhi, Dec 24 (NationPress) A recent report reveals that the volume of transactions within the banking, financial services, and insurance (BFSI) sector surged to three times its previous level in the calendar year 2025. The analysis from Equirus Capital indicates that there were 30 deals in total, a substantial increase from just 10 deals in 2024. This uptick involved mergers, acquisitions, and strategic agreements valued at Rs 42,939 crore from banks and non-bank financial companies.
Furthermore, other segments within the BFSI sector recorded transactions amounting to Rs 43,014 crore.
The report sheds light on the performance of non-banking financial companies (NBFCs), which have outperformed both public sector banks and major private banks in terms of share price over the past year.
In terms of performance on a set price index of 100, Indian Bank, Canara Bank, and Bank of India were leaders among public sector banks, scoring 151, 144, and 136, respectively.
L&T Finance led the charge among NBFCs, nearly doubling its value to 204. Within the large private banking sector, IDBI Bank, IDFC First Bank, and Yes Bank showed the strongest share price movements. Notable small private banks that exceeded expectations included RBL Bank, South Indian Bank, and DCB Bank.
Leading investment firms have recently indicated a bullish stance on both banks and NBFCs, noting that net interest margins for banks are expected to improve in FY27. The asset quality for private banks is projected to recover, potentially driving mid-teens earnings growth in FY27, following a sluggish FY26.
NBFCs are experiencing robust earnings growth, fueled by strong demand for credit and improving margins due to declining interest rates, according to the report.
Public sector banks have gained traction in personal, home, and auto loan sectors, while private banks have made significant gains in consumer durables, credit cards, and two-wheelers. Personal loan disbursements increased by about 23% and 35% year-on-year in the first half and second quarter of FY26, respectively, with PSBs’ disbursements soaring 77%, thereby raising their market share by value to 36% in Q2FY26.
Point of View
I observe that the tripling of deal activity in India's BFSI sector signals a vibrant and evolving market. This growth not only reflects confidence in the financial landscape but also indicates a shift in consumer behavior and investment strategies. While we celebrate these developments, we must remain vigilant about the long-term implications for both investors and the general public.
NationPress
4 Jul 2026
Frequently Asked Questions
What does BFSI stand for?
BFSI stands for Banking, Financial Services, and Insurance, representing a crucial sector in the economy.
Why did deal activity increase in 2025?
The increase in deal activity is attributed to a recovering market, improved asset quality, and strong credit demand.
Which companies performed well in the BFSI sector?
L&T Finance, Indian Bank, Canara Bank, and IDBI Bank are among the top performers in share price movements.
What are the future expectations for the BFSI sector?
Experts predict improved net interest margins and robust earnings growth in the coming fiscal years.
How did personal loan disbursements change?
Personal loan disbursements grew approximately 23% and 35% year-on-year in H1FY26 and Q2FY26 respectively.
