The banking, financial services, and insurance (BFSI) sector witnessed a significant increase in deals in CY 25, with a threefold rise compared to the previous year. According to a report by Equirus Capital, there were 30 deals in 2025, up from 10 deals in 2024, amounting to Rs 42,939 crore in mergers, acquisitions, and strategic transactions involving banks and non-bank financial companies.
In addition to these deals, other segments within the BFSI sector also saw transactions amounting to Rs 43,014 crore. The report highlighted the outperformance of non-banking financial companies (NBFCs) over public sector banks and both large and small private banks in terms of share price movement over the past year.
Among the public sector banks, Indian Bank, Canara Bank, and Bank of India emerged as the top performers with price indices of 151, 144, and 136 respectively. Meanwhile, L&T Finance led the rally among NBFCs, nearly doubling its share price to 204. The report also noted that IDBI Bank, IDFC First Bank, and Yes Bank were the strongest performers among large private banks, while RBL Bank, South Indian Bank, and DCB Bank outperformed among small private banks.
Leading fund houses have expressed optimism towards banks and NBFCs, expecting improvements in net interest margins for banks in FY27. Private banks are anticipated to witness a recovery in asset quality, driving mid-teens earnings growth in FY27 following a sluggish FY26, as per a recent report.
The report further pointed out that NBFCs are experiencing robust earnings growth due to strong credit demand and improved margins resulting from declining interest rates. Public sector banks have expanded their share in personal, home, and auto loans, while private banks have strengthened their presence in consumer durables, credit cards, and two-wheelers.
