India’s Banking, Financial Services and Insurance sector has expanded its market capitalisation over 50 times to ₹91 lakh crore in 2025 from ₹1.8 lakh crore in 2005, reflecting a compound annual growth rate of 22 per cent, according to a study released today by Bajaj Finserv AMC.
The sector’s market cap as a percentage of GDP has jumped from 6 per cent in 2005 to 27 per cent in 2025, driven by regulatory reforms, increased financialisation and demographic factors. The BFSI sector has consistently outperformed the broader Nifty 50 index during major market rallies over the past two decades.
The banking sector recorded a CAGR of 10.71 per cent in credit and 10.25 per cent in deposits over the past decade. Gross NPAs declined sharply from 5.8 per cent to 2.2 per cent between FY22 and FY25. Non-banking financial companies have emerged as significant players, with their net worth growing at approximately 15 per cent CAGR since FY10 and accounting for 18 per cent of total BFSI earnings in FY24.
The mutual fund industry’s assets under management has grown 45 times over two decades, reaching over ₹75 lakh crore. The AUM-to-GDP ratio hit an all-time high of 19.9 per cent in March 2025, up from 7 per cent in 2015. Banks now account for 57 per cent of BFSI’s market cap, down from 85 per cent in 2005, reflecting the growing importance of NBFCs, fintechs, asset management companies and insurers.
Published on November 4, 2025
