BFSI's share in India Inc's Q2 profits hits record high of 41.5%

The biggest gains came to banks, which reported a 35.8 per cent YoY growth rate in their combined net profit in Q2 FY23

The financial services sector, including banks, continues to prosper even as the rest of corporate India faces earnings headwinds from higher commodity prices and rising inflation.

The share of banks, financial services, insurance, and stock broking (or BFSI) in overall corporate profits reached a record high of 41.5 per cent during the July-September 2022 period (Q2 of FY23), nearly double its historical 10-year average share of 21.8 per cent. However, this is excluding the June quarter of 2020, when the share of BFSI jumped to nearly 60 per cent because many other sectors saw a sharp fall in profits or