Sector Snapshot · Finance

India's Financial Services Sector Is Set to Double Profits

A fast-read primer on India's broader finance and NBFC sector — the backdrop against which we benchmark every company's cost structure in this category.

Rs 213.35 lakh cr
Projected AUM opportunity by FY29
16%
NBFC annual growth rate, driving profits
US$1 trillion
Insurance sector investment corpus target, 2025
30.74%
Gross savings as % of GDP, 2024
Rs 1.95 lakh cr
IPO fundraising across 365 IPOs, 2025

Assets and Capital Raising Are Both Accelerating

AUM is set to more than double this decade, alongside a record year for capital raising.

Total AUM Opportunity (US$ trillion)

FY24 → FY29 forecast

$1.1tn
FY24
$2.3tn
FY29F

IPO Fundraising (Rs lakh crore)

2025 actual vs. 2026 pipeline

Rs1.76L cr
2025
Rs4L+ cr
2026 Pipeline

What's Pushing the Sector Forward

NBFC-led growth, rising penetration, and policy support for credit access all reinforce each other.

Growing Demand
  • Financial services profits projected to nearly double by FY30
  • NBFCs growing at 16% annually are leading that growth
Rising Penetration
  • Credit, insurance and investment penetration all rising in rural areas
  • HNWI participation growing in wealth management
Policy Support
  • Budget 2026 aims to boost fintech and credit access
  • Unified Lending Interface launched to widen access to credit

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

Companies We Benchmark in This Sector

Listed Indian Finance companies in tDoBe's cost-benchmarking coverage.

Bajaj Finance
Bajaj Finserv
Shriram Finance
Jio Financial
Cholamandalam Investment & Finance
Tata Capital
Power Finance Corporation
Muthoot Finance
Bajaj Holdings
IRFC
Aditya Birla Capital
REC Ltd
L&T Finance Ltd
Bajaj Housing
SBI Cards
HDB Financial Services
M&M Financial Services
Sundaram Finance

The Cost Benchmark — What We Actually FoundtDoBe Think Report

The market facts above are public background. What follows is tDoBe's own work: every "Other Expenses" line from these companies' own financial records, read by hand and sorted into one clear set of categories — not a keyword search, not each company's own way of reporting it.

6.6%
tDoBe Average — Other Expenses as % of Total Income
16.8×
Gap between the highest and lowest company
12
Cost categories, sorted by meaning
1.1%
Biggest single category — Miscellaneous & Others
FY24/25
Latest available financial records

Where Companies Land — Total Other Expenses

Each mark is one company's total Other Expenses as % of Total Income. No company is named here.

6.6%
0%2%4%6%8%10%12%

tDoBe Average by Cost Category

Ranked from biggest to smallest.

Miscellaneous & Others
1.1%
Manpower Supply/Contract Labour
0.6%
Advertising & Sales Promotion
0.5%
Legal & Professional Fees
0.5%
Corporate Social Responsibility
0.4%
Total Other Expenses
6.6%
Where the Cost Really Sits

Miscellaneous & Others leads at roughly 1.1% of Total Income, with Manpower Supply/Contract Labour, Advertising & Sales Promotion and Legal & Professional Fees each close behind — a lean cost profile typical of lending-focused NBFCs.

Why the Range Is So Wide

This sector spans gold-loan lenders, consumer-finance NBFCs, infrastructure financiers and diversified lenders — different lending models with different cost bases — which drives most of the 16.8x spread.

Why the Comparison Uses Total Income

We use Total Income, the standard base for NBFC-style cost ratios, in place of ‘net revenue.’ We've also left out Bajaj Finserv Ltd and Bajaj Holdings & Investment Ltd, holding companies rather than operating lenders, and Jio Financial Services Ltd, too newly listed for a comparable full-year record — keeping the comparison to established, operating lenders.

See Where Your Own Company Stands

This is the free, sector-wide view. It tells you where Finance stands as a whole — not where your own company stands against it, category by category, in rupees.

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A below-average number is a reason to call too — the benchmark keeps improving as we go.

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Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes · Cost Benchmark findings compiled from companies' own financial records, FY2024/25.