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Sector

Financial Services sector explained

Banks, non-bank lenders (NBFCs), insurers, brokers, exchanges and fund houses. They lend money, protect against losses and help people save and invest.

For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Companies we cover

6 companies in Financial Services

  • Bajaj Finance

    BAJFINANCE

    Bajaj Finance gives personal, consumer, home and business loans to 12.9 crore customers in India, and earned ₹19,017 crore of profit in FY26.

    Data depth: StandardCovers Q2 FY27

  • HDFC Bank

    HDFCBANK

    HDFC Bank takes deposits and lends to households and businesses in India, earning ₹74,671 crore of bank-only profit in FY26.

    Data depth: RichCovers Q2 FY27

  • ICICI Bank

    ICICIBANK

    ICICI Bank takes deposits and lends to households and businesses in India, earning ₹50,147 crore of bank-only profit in FY26.

    Data depth: RichCovers Q2 FY27

  • Kotak Mahindra Bank

    KOTAKBANK

    Kotak Mahindra Bank takes deposits and lends to households and businesses in India, earning ₹14,008 crore of bank-only profit in FY26.

    Data depth: RichCovers Q2 FY27

  • LIC

    LICI

    LIC sells life insurance, savings and pension policies to people and employers across India, collecting ₹535,984 crore of premiums in FY26.

    Data depth: RichCovers Q1 FY27

  • SBI

    SBIN

    State Bank of India takes deposits from and lends to about 53 crore customers, earning ₹80,032 crore of bank-only profit in FY26.

    Data depth: RichCovers Q1 FY27

How companies in this sector earn

How do Financial Services companies make money?

  • Banks and NBFCs earn the gap between the interest they charge on loans and what they pay for funds.
  • Banks raise most of their money as deposits, while NBFCs borrow from banks and bond markets, which usually costs more.
  • Insurers collect premiums upfront and invest that money until claims have to be paid.
  • Brokers, exchanges, depositories and fund houses earn fees linked to trading activity or the money they manage.
  • For lenders, the biggest risk is loans that are not repaid. Money set aside to cover them is called a provision.

Who regulates it

Reserve Bank of India (RBI) · Securities and Exchange Board of India (SEBI) · Insurance Regulatory and Development Authority of India (IRDAI) · Pension Fund Regulatory and Development Authority (PFRDA) · Department of Financial Services, Ministry of Finance

What moves results across the sector

  • The RBI's repo rate, which feeds into what banks pay on deposits and charge on loans.
  • Loan growth compared with deposit growth across the banking system, published by the RBI.
  • Repayment trends in unsecured lending such as personal loans, credit cards and microfinance.

Words you'll meet

Key terms

NIM (net interest margin)
Interest earned minus interest paid, as a share of the lender's loans and investments.
Gross NPA
Loans where the borrower has stopped paying for over three months, as a share of all loans.
CASA ratio
The share of a bank's deposits held in current and savings accounts, which pay little or no interest.
Capital adequacy ratio (CRAR)
A lender's own capital as a share of its risk-weighted loans; regulators set a minimum.
Credit cost
New provisions for bad loans in a period, as a share of total loans.
AUM (assets under management)
The total money a fund house or wealth manager looks after for its clients.

Key facts

Financial Services in numbers

What share of bank loans were bad loans in March 2026?
Scheduled commercial banks' gross NPA ratio was 1.8% at the end of March 2026, according to the RBI's Financial Stability Report of June 2026. (Source: Reserve Bank of India)
How fast did bank lending grow in FY26?
Credit given by scheduled commercial banks grew 14.5% year on year in FY26 (2025-26), per the RBI's Financial Stability Report of June 2026. (Source: Reserve Bank of India)
How much capital did Indian banks hold in March 2026?
Scheduled commercial banks had a capital adequacy ratio (CRAR) of 17.7% and a core equity (CET1) ratio of 15.3% at the end of March 2026, per the RBI. (Source: Reserve Bank of India)

Sources

  1. Financial Stability Report, June 2026, Chapter II: Financial Institutions: Soundness and Resilience, Reserve Bank of India, 30 Jun 2026

Last updated 25 Oct 2026.

Disclaimer

For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a SEBI-registered investment adviser.

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