Best Banking Stocks in India (2023)

Last Updated on Sep 26, 2023 by Anjali Chourasiya

Best public banking stocks in India

Note: The data is from 26th September 2023. To get this list of public banks in India on the Tickertape Stock Screener, apply the below-mentioned filter.

• Sector > Financials > Public Banks
• 5Y CAGR: Set the lower limit to zero (positive)
• Net Profit Margin: Set the lower limit to zero (positive) – Sort from highest to lowest
• Total Deposits (Cr): Set to High

Details of top 3 public bank stocks in India

Bank of Baroda Ltd

Founded in 1908, Bank of Baroda provides various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, NRI services and treasury services. Here’s a sneak peek into the financial information of Bank of Baroda Ltd.

• Over the last 5 yrs, the revenue growth has averaged 16.97%, vs the industry average of 10.83%. During the same period, the net income has been 141.31%, vs the industry average of 292.96%. Whereas in terms of the current ratio, the stock has been ~2% above its industry average.
• If we look at the future projections, the stock has lower expectations of return, revenue, and earnings growth.
• As per the Tickertape Scorecard, the stock is average in terms of performance, valuation, and growth score. However, the profitability of the stock is on the good side, 7 out of 10. There are no red flags in the stock, and it’s underpriced and is not in the overbought zone.

Analyse the stock on various other parameters here.

State Bank of India Ltd

Incorporated in 1955, State Bank of India is a public sector bank providing a range of products and services to personal and commercial enterprises, large corporates, public bodies and institutional customers. Let’s have a look at the stock’s financial information. 

• While the stock’s profitability score is a promising 7 out of 10 as per the Tickertape Scorecard, it has been behind its industry average regarding revenue growth, net income, current ratio, and financial growth.
• If we sneak peek into the ‘Forecasts’ section of the stock, it says it has lower expectations of return, revenue, and earnings growth. 
• There are no red flags in the stock, and it is underpriced and is not in the overbought zone.

Analyse the stock on different parameters and compare it with its peers here.

Indian Bank

Founded in 1907, Indian Bank offers deposits, loans and services. The bank’s segments include treasury, corporate/wholesale banking, retail banking and other banking operations. Here’s a sneak peek into the financial information of Indian Bank.

• Over the last 5 yrs, the stock has had a higher revenue growth than its industry average. However, during the same period, the net income of the stock has averaged 77.45%, vs the industry average of 292.96%, and it also lags behind in the current ratio.
• As per the Tickertape Scorecard, the stock is average regarding performance, valuation, growth, and profitability. In terms of future projections, the stock has lower return expectations.
• There are no red flags in the stock, and it is underpriced and is not in the overbought zone.

Analyse the stock on different parameters and find its analyst buy rating here.

Best private banking stocks in India

Note: The data is from 26th September 2023. To get this list of private banks in India on the Tickertape Stock Screener, apply the below-mentioned filter.

• Sector > Financials > Private Banks
• 5Y CAGR: Set the lower limit to zero (positive)
• Net Profit Margin: Set the lower limit to zero (positive) – Sort from highest to lowest
• Total Deposits (Cr): Set to High

Details of top private bank stocks in India

HDFC Bank Ltd

Founded in 1994, HDFC Bank Limited offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. Here’s a sneak peek into the financial information of HDFC Bank Ltd.

• Over the last 5 yrs, the stock has had a higher revenue growth than its industry average. However, during the same period, the net income of the stock has averaged 19.98%, vs the industry average of 28.23%, and it also lags behind in the current ratio.
• Regarding future projections, the stock has higher expectations in terms of returns. However, the expected revenue and earnings growth are less for the next year. 
• As per the Tickertape Scorecard, the stock is overvalued and lags behind in financial growth. The stock shows average performance but good profitability (7 out of 10).
• There are no red flags in the stock, and it is overpriced but is not in the overbought zone.

Compare the stock with its peers here.

ICICI Bank Ltd

Incorporated in 1994, ICICI Bank Limited provides a range of banking and financial services, including commercial & retail banking, project & corporate finance, insurance, venture capital and private equity, investment banking and broking. Let’s look at the financial information and the performance of the stock.

• Over the last 5 yrs, the revenue growth has averaged 9.59%, vs the industry average of 12.21%. In contrast, during the same period, the stock’s net income and current ratio have averaged more than its industry average.
• If we sneak peek into the ‘Forecasts’ section of the stock, it says it has lower expectations of return, revenue, and earnings growth. 
• As per the Tickertape Scorecard, the stock has an average performance score and a low growth score. The stock is overvalued than its market average but shows good signs of profitability and efficiency. 
• There are no red flags in the stock, and it is overpriced but is not in the overbought zone.

Analyse the stock on various other parameters here.

Axis Bank Ltd

Founded in 1993, Axis Bank Limited (the Bank) provides a suite of corporate and retail banking products. The bank’s segments include treasury, retail banking, corporate/wholesale banking and other banking business. Here’s a sneak peek into the financial information of Axis Bank Ltd.

• Over the last 5 yrs, the revenue growth has averaged 13.04%, vs the industry average of 12.21%. During the same period, the net income has been 260.66%, vs the industry average of 28.23%. Whereas in terms of the current ratio, the stock has been ~0.5% above its industry average.
• Regarding future projections, the stock has lower expectations of return and revenue growth. However, the expected earnings growth of 115.36% for next year is more than the last 3-yr CAGR earnings growth of 72.38%.
• As per the Tickertape Scorecard, the performance and growth score of the stock have been average. The stock is overvalued and has no red flags. 
• The stock shows a good sign of profitability and efficiency. Further, the stock is underpriced and is not in the overbought zone.

Find the stock’s analyst buy rating here.

Indian banking industry

Private sector

Financial institutions that are owned and controlled by private individuals or corporations rather than the government are called private-sector banks. These banks play a significant role in the Indian banking sector by providing various banking services. Private sector banks lead in terms of their customer service, product innovation, smooth digital banking experience, and efficiency than public banks. 

However, there are some disadvantages as well. For instance, you may have to pay a higher interest rate on loans and credit products than public sector banks. Further, private sector banks do not have government support; therefore, in times of financial crisis, they may have to face far more challenges than a public sector bank would have to. Hence,  thoroughly researching a private bank stock thoroughly before investing is worthwhile.

Public sector banks (PSU)

Public Sector Undertakings (PSUs) are companies where the government holds the majority of the stake. There are three types of PSU companies mentioned below.

Central Public-Sector Enterprises (CPSE) – These companies are where the central government holds a stake of more than 15%. CPSE is further classified into three types: Maharatna companies, Navratna companies, and Miniratna companies.

Public-Sector Banks (PSB) – Financial institutions in which the government or another public-sector bank holds more than 51% of the voting shares are called PSBs. Nifty PSU Bank represents the performance of PSBs.

State-Level Public Entities (SLPE) – Companies where the state government or another SLPE holds more than 51% stake are called state-level public entities.

How do you find the best banking stocks for your portfolio?

Stock selection criteria for the best financial stocks in India vary from investor to investor. Remember, it is crucial to conduct your own research before investing. For this purpose, #TickertapeHaiNa! With over 200 filters, custom filters, pre-built screens, custom universes, a linking watchlist, export data, and more features, Tickertape Stock Screener is your perfect companion for finding the next best stock for your portfolio. Using the tool is a great way to save time and focus on the stocks that are most relevant to you.

Further, the Scorecard on every asset page helps you dive deeper into the stock and analyse the stock based on quantitative factors such as profitability, performance, entry and exit points, valuation, and growth and provides a sneak peek into the potential red flags in the stock. 

Research, analyse, and invest quicker than before, because #TickertapeHaiNa! Become a Pro Member now!

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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