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.

→ India's financial services sector is projected to nearly double profits by FY30, led by NBFCs growing at 16% annually.
→ Investment corpus in India's insurance sector may rise to US$1 trillion by 2025.
→ India's gross savings stood near 30.74% of GDP in 2024.
→ 2025 was a record IPO year, with Rs1.95 lakh crore raised across 365 listings.
→ India's mutual fund industry AUM crossed a record Rs82,02,956 crore (US$932.6bn) in February 2025.
→ Knight Frank projects India's UHNWI population will rise 58.4% by 2028.

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

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Finance Report

Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes