India's financial services sector recorded deals worth $7.3 billion in the July-September quarter of 2026, representing a 129% increase sequentially, according to a report by Grant Thornton Bharat. The sector saw 67 transactions during the quarter, marginally higher than the 65 recorded in the preceding quarter. However, the surge in deal value was largely driven by large-ticket transactions, including the initial public offerings (IPOs) of the National Stock Exchange of India (NSE) and SBI Funds Management, alongside Bank of America Corporation's $1.9 billion investment for a 50% stake in Jio Credit. The value-led acceleration was driven by major M&A activity and public-market issuances, with the quarter reflecting a market where investor interest remained strong but capital deployment was increasingly selective.
Public-market fundraising recovered sharply during the quarter, with seven IPOs raising $3.8 billion and two qualified institutional placements (QIPs) garnering $498 million. Combined fundraising of around $4.3 billion was more than 10 times the Q2 total. The NSE and SBI Funds Management IPOs raised approximately $2.4 billion and $1 billion respectively, accounting for most of the capital raised through public-market issuances. Excluding IPOs and QIPs, mergers and acquisitions and private equity and venture capital (PE/VC) investments together accounted for 58 transactions worth $3 billion. As per Grant Thornton Bharat, the quarter reflected a market in which investor interest remained strong but capital deployment was increasingly selective.
Global investors have significantly increased their commitment to India's financial services sector, with over $20 billion in deals completed since 2025. Major transactions include Fairfax Financial Holdings' proposed $5.6 billion acquisition of a 60.72% stake in IDBI Bank for ₹52,878 crore, MUFG's $4.4 billion investment for a 20% stake in Shriram Finance, SMBC's $1.6 billion investment in Yes Bank, and Emirates NBD's proposed $3 billion buy of a 60% stake in RBL Bank. According to Deloitte India, the IDBI Bank disinvestment represents one of the most significant structural reforms in India's banking sector, with implications for long-term foreign capital attraction. Manish Aggarwal from Deloitte India noted that the groundwork for this transaction helped lay the foundation for stronger investment momentum from countries such as Japan and regions such as the Middle East.
Private equity and venture capital activity slowed during the quarter, with 35 transactions worth $736 million. Deal volumes declined 8% quarter-on-quarter, while values fell 44%. Despite the slowdown, PE/VC accounted for 52% of total deal volumes in the financial services sector. Smaller transactions dominated disclosed activity, with deals below $50 million representing approximately 91% of disclosed PE/VC volumes. The largest investments included the National Investment and Infrastructure Fund's $182 million investment in NIIF Infrastructure Finance, along with investments of $100 million each in Slice and Navi Technologies.
Fintech remained the most active sub-sector by transaction volume, recording 30 deals worth $722 million. Financial services and asset management recorded 18 deals worth approximately $4 billion, led by the NSE and SBI Funds Management IPOs. Banking and non-banking financial companies (NBFCs) recorded 15 transactions worth $2.5 billion, with Bank of America's investment in Jio Credit driving the increase in deal value. Insurance and third-party administrators (TPAs) recorded four transactions worth $29 million, with deal values declining 93% sequentially in the absence of a large transaction. Together, fintech, banking and NBFCs accounted for approximately 67% of total transaction volumes. According to Grant Thornton Bharat, fintech, banking and NBFCs together accounted for approximately 67% of transaction volumes, underlining continued interest in technology-enabled financial platforms and lending businesses.
