New Delhi: Corporate earnings in India now seem to depend more than ever on the good performance of the banking, financial services and insurance (BFSI) sector. The share of BFSI sector in total corporate profits during July-September 2024 increased to 38.5 per cent, the highest since 2012. Also, it is about 60 per cent higher than the sector’s historical contribution to total corporate income. During the last 10 years, the average share of this sector in the total corporate profits of the country has been about 23.6 percent.
Due to the closure of many non-financial economic activities during the Corona period, the contribution of BFSI sector in the total income increased significantly. The BFSI sector’s share in total corporate profit for the April to June 2020 quarter was 57.2 per cent.
In Q2FY25, consolidated net profit of the BFSI sector grew 15.3 per cent compared to the same period a year ago, while consolidated net profit of non-BFSI comp.es declined 4.2 per cent during the period. Consolidated net profit of 3,515 comp.es in the sample registered a growth of 2.4 per cent during the quarter.
Consolidated net profit of BFSI comp.es in Q2 FY2025 at Rs. Which was Rs 1.24 lakh crore in the second quarter of the last financial year. 1.08 lakh crore. But the consolidated net profit of non-BFSI comp.es in Q1FY25 is expected to be Rs. Decreased from Rs 2.1 lakh crore to Rs 2.1 lakh crore. 2.01 lakh crore.
Before Corona, the share of BFSI sector in the consolidated revenue of all listed comp.es was about 19 percent. Analysts say the rising share of the BFSI sector in corporate revenues and profits has been responsible for the consecutive double-digit growth.
