India's banking, financial services, and insurance (BFSI) sector recorded 65 deals worth $3.2 billion in the second quarter of 2026, with overall deal value rising 58% quarter-on-quarter, even as transaction volumes remained largely unchanged, according to Grant Thornton Bharat's latest Financial Services Dealtracker report.

Key Highlights

• India's BFSI sector recorded $3.2 billion in deals in Q2 2026, up 58% quarter-on-quarter.
• Meta Platforms invested $900 million in CRED, the quarter's largest M&A transaction in the sector.

The BFSI segment represented 11% of the total deal volume in India during the quarter, and 8% of total deal value. The sector excluded public market transactions, recorded 62 M&A and PE/VC transactions valued at $2.8 billion, reflecting value-led recovery despite on-going macro-economic and geopolitical uncertainty, as a result of strategic acquisitions.

Vivek Iyer, Partner, Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat said, "The sector saw a measured recovery during the quarter, led by a handful of strategic transactions despite a cautious investment environment. Investors continued to prioritise scalable, platform-led and regulated businesses, while capital deployment remained selective. As macroeconomic conditions stabilise and capital markets deepen, India's financial services ecosystem remains well positioned to attract sustained strategic and financial investments over the long term.

M&A Activity Rebounds Sharply

M&A activity rebounded sharply in the April-June quarter, with 24 deals worth $1.5 billion. Deal volumes rose 50% sequentially, while transaction values increased nearly fivefold compared with the previous quarter. The recovery was led by a few marquee transactions, including Meta Platforms' $900 million investment in CRED and Prudential plc's $368 million acquisition of Bharti AXA Life Insurance, which together accounted for the bulk of disclosed M&A value during the quarter.

PE/VC Investments Stay Selective

The report highlighted that although investors continued to look for financial services platforms that are scalable, investment interest remained largely concentrated on smaller deals. The biggest PE deals include $419 million invested by Grasim Industries, Suryaja Investment and International Finance Corporation (IFC) in Aditya Birla Capital Ltd and $280 million raised by fintech lender KreditBee in its Series E round to become a unicorn.

Also Read: India's M&A and PE Deal Value Surges 127% to $36.3 Billion in Q2 2026 

Public Market Fundraising Stays Subdued

In total, there were 1 IPO and 2 QIPs that were done by the public market in Q2 2026, raising $97 million and $310 million respectively. Fundraising activity remained muted in capital markets despite the volatility in the market and uncertainty related to global economic conditions, whereas the proceeds of QIP increased considerably for the quarter, mainly due to Poonawalla Fincorp's capital raise of $269 million.