New Delhi, April 6 -- Indias banking, financial services and insurance (BFSI) sector is expected to witness a gradual recovery after a difficult FY2026, according to a report by Motilal Oswal Financial Services (MOFSL).

The report described FY2026 as a challenging year, with macroeconomic volatility, margin pressures and subdued loan growth weighing on overall performance. However, it noted that select opportunities remained, with several stocks delivering strong returns despite broader sectoral stress.

Structural Growth Remains Intact

Despite near-term challenges, the sector continues to expand structurally. MOFSL highlighted that the BFSI market capitalisation rose to Rs 108 trillion in 2026 fr0m Rs 91 trillion in 2025, marking a gr...