The financial services sector in the country recorded 79 transactions valued at $5.6 billion, including initial public offerings (IPO) and qualified institutional placement (QIP) activity, in the April-June period (Q2), a report said on Monday.
While overall deal volumes rose by 18 per cent and values saw a modest 5 per cent uptick over Q1 2025, the quarter reflected a measured investment approach amid ongoing global uncertainties and trade tensions, according to the Grant Thornton Bharat ‘Q2 Financial Services Dealtracker’ report.
According to the report, excluding public market activity, the sector reported 73 deals valued at $4.5 billion — up 12 per cent in volume but down 10 per cent in value quarter-on-quarter — driven by a sharp 92 per cent decline in domestic deal values in the quarter.
“Despite this, high-value activity remained strong, with six deals over $100 million collectively contributing $3.7 billion,” the report stated.
The sector accounted for 14 per cent of overall volumes and a commanding 33 per cent of total values this quarter, continuing to play a pivotal role in the deal landscape.
“Q2 continued the trend of high deal volumes driven by small-ticket transactions, punctuated by a few notable big-ticket moves, particularly in Indian banking,” said Vishal Agarwal, Partner, Private Equity Group and Deals Tax Advisory Leader, Grant Thornton Bharat.
As consolidation deepens across banks and small finance banks, and regulatory clarity improves, we anticipate more M&A and PE activity in this space. Fintech remains the top draw for investors, while wealth and asset management is emerging as a fast-growing asset class, Agarwal added.
Meanwhile, Mergers & Acquisitions (M&A) activity saw a slowdown in Q2 2025, with volumes declining 43 per cent and values falling 35 per cent compared to Q1.
The quarter recorded 16 deals worth $2.6 billion, with domestic transactions continuing to dominate volumes despite a 35 per cent dip from the previous quarter, the report highlighted.
Due in large part to Sumitomo Mitsui Banking Corporation’s $1.5 billion acquisition of a Yes Bank stake, inbound deals accounted for 88 per cent of total M&A value this quarter, the highest percentage since Q2 2024.
Private Equity (PE) surged in Q2 2025, recording 57 deals worth USD 1.9 billion—marking the highest quarterly volumes since Q2 2022 and the highest values since Q2 2023, the report said.
(IANS)
