CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: India’s financial ecosystem is expanding in step with the country’s broader growth trajectory. Structural shifts in technology, demographics, regulation, and inclusion continue to reshape how Indians save, borrow, insure, and invest. These long-term drivers are creating opportunities for institutions across the Banking Financial Services and Insurance (BFSI) space.
Investors seeking exposure to this evolving segment may consider exploring suitable options such as the Bajaj Finserv Banking and Financial Services Fund, an open ended equity scheme investing in the Banking and Financial Services sector.
The New Fund Offer opens on Monday, November 10, 2025, and closes on Monday, November 24, 2025. The scheme reopens for subscription within five business days from the date of allotment.
India’s evolving financial landscape
India is projected to become the world’s third-largest economy by 2030, with an estimated GDP of USD 7.3 trillion. This expansion is underpinned by megatrends such as digitalisation, demographic growth, and increasing formalisation of the economy.
For India’s GDP to grow meaningfully, the financial system must keep pace. Estimates suggest that the banking industry will need to add USD 4 trillion in capital over the next two decades to support the expansion of financial assets and credit.
The BFSI sector plays a central role in this transformation through capital mobilisation, credit growth, and digital access. For instance, credit disbursement to priority sectors rose 85% from Rs. 23 lakh crores in 2019 to Rs. 42.7 lakh crore in 2024, while UPI transaction values grew nearly fivefold from Rs. 41 trillion in FY21 to Rs. 236 trillion in FY25.
Source: Motilal Oswal, Press Information Bureau, CareEdge, Reserve Bank of India, Financial Stability Board; World Bank, BCG analysis, Bloomberg, International Monetary Fund, CEBR
Shifts shaping the BFSI sector
The Bajaj Finserv Banking and Financial Services Fund is designed to identify companies positioned to benefit from India’s structural financial trends:
- Technology
India’s transition towards digital finance continues to accelerate. Non-cash transactions are projected to rise from 38% in FY23 to 62% in FY28, with Tier 2 and smaller cities expected to account for over 80% of an estimated USD 60 billion in digital lending disbursements by FY28.
- Economic
The number of Jan Dhan accounts has grown nearly 18× over the past decade, from 33 million in FY14 to 540 million in FY24, mobilising deposits of around Rs. 2.3 trillion. These accounts have improved access to savings and enabled direct benefit transfers.
- Demographic
India’s working-age population is set to rise over the next two decades, driving demand for credit, insurance, and investments. By 2030, around 75% of Indian households are expected to fall into middle- and high-income categories, expanding the addressable market for financial products.
- Social
Fintech firms are broadening credit access for individuals and small businesses, particularly those with limited credit history. Their growing presence in segments such as personal loans and MSME lending highlights the role of innovation in expanding financial reach.
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