Best Banking Stocks in India in 2024

The Indian banking system is the backbone of the Indian economy. It plays a major role in financial transactions, credit allocation, and economic development. The banking sector includes both public and private banks, foreign banks, regional rural banks, and cooperative banks. In this blog, we will analyze the best banking stocks in India.

 

The Indian banking industry which was dominated by public banks saw the rise of private banks post liberalization. The Indian banking industry today has become a behemoth is the driving force of the Indian economy. The Indian banking family is 12 public banks, 21 private sector banks, 44 foreign banks and 12 Small Finance banks long which is regulated by the apex bank of India- Reserve Bank of India (RBI).

 

 

Overview of the Indian Banking Industry

To get a hang of the enormity of the Indian banking sector, let’s look at some of the data of the Indian banking sector. As of FY 2023, the value of total assets in the Indian public and private banks was USD 1686.70 and USD 1016.39 respectively and the interest income of the public and private sector banks was USD 102.4 and USD 70 billion respectively. 

The ever growing Indian middle-class and rapid technological advancements in the banking industry has contributed immensely towards increasing the productivity and efficiency of Indian banks.  Also, the surge in the growth of Indian banks is fueled by the strong economic growth and rising disposable income of the Indian consumer.

 

 

Best Banking Stocks in India in 2024

After considering the above factors, we would present the best banking stocks to buy in India for long term in 2024. Here are the stocks: But before investing in these stocks you must know important ratio in stock market. 

 

1). HDFC Bank

In the banking industry, HDFC is India's no 1 bank. Established in 1994 by HT Parekh, HDFC is the largest bank share in India in terms of Market capitalization and is headquartered in Mumbai. HDFC covers a widespread geographical landscape of India and other countries with its 8,738 branches and 18,130 ATMs. 

HDFC Bank boasts of being the second-largest private-sector lenders by assets and market capitalization. The primary service of the bank is to provide financial services such as deposit, loans and insurance along with personal banking, corporate banking and asset management. On March 31, 2024, the bank's consolidated total assets stood at ₹36.17 lakh crore.

 

HDFC, ICICI and SBI Bank are among the top 10 companies in India by market capitalization.

 

 

2). ICICI Bank

ICICI Bank is another topmost private sector bank with consolidated total asset of INR 23.6 lakh crore. The bank was formed in 1994 and now it has its presence even in Bahrain, Dubai, Singapore apart from all the states of India. 

It offers diverse banking products and financial services to corporates, retail customers and small businesses through its different group companies. ICICI Bank boasts of 6,371 branches and 17,037 ATMs all across India.

 

 

3). State Bank of India (SBI)

 

State Bank of India (SBI) is one of the most renowned banks of India. The bank was founded in 1955 and is a leading public sector bank with its presence around the globe. SBI has it headquarter in Mumbai and boasts of a vast network of over 22,000 branches across India, along with a significant presence in 31 countries internationally. 

Being one of India's topmost banks SBI offer a comprehensive suite of products and services ranging from everyday savings accounts and fixed deposits to loans for individuals and businesses.

SBI is the largest PSU bank stocks in India and one of the world's largest by assets.

 

 

4). Kotak Mahindra Bank

Kotak is India's leading financial services bank led by Uday Kotak. The bank covers a widespread geographical area with its 1,948 branches and 3,291 ATMs and provides a plethora of banking and financial services to corporate, small-scale businesses and retail customers. 
The bank has nailed the digital game, and it has played an integral role in the growth of the bank. Till now it has adopted a prudent and targeted approaching focusing on high-rated customers, but it has continued to grow aggressively in every domain in the last few years.

 

 

5). IndusInd Bank

IndusInd Bank is another big private bank in the Indian banking industry. It is a retail and commercial bank which cater to all segments of the Indian market including individuals, small-scale companies, corporates and high net-worth investors. With it headquarter in Mumbai, the bank provides diverse products and services including deposits, lending, credit cards, insurance and many more. 
The bank also merged with Bharat Financial inclusion in 2019 to expand its reach in the rural part of India too. It has managed to contain and reduce.

 

 

Important Points to consider before Investing in the Indian Banking Sector

Before investing in the banking sector stocks there are certain things you should understand and take into consideration before investing in them. These points are:

-    Economic Health of the Nation

The state of the economic health of any nation has a sizeable impact on the banking industry of that country. Therefore, it becomes crucial for investors to assess economic factors such as GDP, inflation and interest rates and disposable income of people before investing in banking stocks.

-    Financial performance of Companies

Before investing ensure that you perform thorough research about the bank financials and ensure that it has lower NPAs, strong asset quality and consistent growth over years.

-     Competition Analysis

Another important consideration before choosing a banking stock is the proper competition analysis of the bank. As an investor you have to consider the market share of the bank, its product offerings, its brand value and other factors like its advantages over its competition.

-    Law of the Land

Before investing in a particular banking stock understand the legal framework under which the bank functions which includes the policies set by the RBI and other concerned bodies.

 

 

FAQ

Ques 1. What are the top 10 banking stocks in India?

Ans. Here is the list of the top 10 banking stocks in India along with their stock prices and market caps.

Sl No.	Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. cr)
1	HDFC Bank	1,637.00	1,791.90	1,363.45	1,247,941.78
2	ICICI Bank	1,210.05	1,256.00	898.85	852,331.66
3	SBI	782.6	912.1	543.15	698,440.17
4	Axis Bank	1,159.15	1,339.55	951.55	358,449.68
5	Kotak Mahindra	1,763.90	1,926.00	1,544.15	350,684.49
6	Bank of Baroda	235.8	298.45	187.95	121,940.72
7	PNB	109.95	142.9	65.51	121,066.12
8	IndusInd Bank	1,412.30	1,694.35	1,328.75	110,007.09
9	IOB	58.06	83.8	31.66	109,747.41
10	IDBI Bank	88.39	107.98	59.62	95,040.48

 

 

Ques 2. List of bank nifty weightage stocks in India?

Ans. Nifty bank index is made up Maximum of top 12 banking stocks listed in National Stock Exchange and here is the list of bank nifty weightage stocks in India, as of August 30, 2024 update.

Sl No.	Company Name	Weightage in %
1	HDFC Bank	28.06
2	ICICI Bank	24.44
3	Kotak Mahindra	10.21
4	SBI	9.89
5	Axis Bank	9.44
6	IndusInd Bank	5.47
7	Bank of Baroda	2.70
8	Federal Bank Ltd.	2.68
9	AU Small Finance Bank Ltd.	2.22
10	Punjab National Bank	2.01

 

Ques 3. Which is the largest bank share in India?

Ans. HDFC is the largest bank share in India and Market capitalization of HDFC bank in ₹ 12,47,941.80 crores.

 

Ques 4. Which is the 3 largest banks in India?

Ans. Here is the list of 3 largest banks in India

Sl No.	Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. cr)
1	HDFC Bank	1,637.00	1,791.90	1,363.45	1,247,941.78
2	ICICI Bank	1,210.05	1,256.00	898.85	852,331.66
3	SBI	782.6	912.1	543.15	698,440.17