4 Largecap Nifty Financial Services Stocks to Watch for Future Multibagger Potential: HDFC Bank, ICICI Bank, SBI and Bajaj Finance
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HDFC Bank Rs 694.05. ICICI Bank Rs 1,398.50. SBI Rs 970. Bajaj Finance Rs 942.10. Market caps from Rs 6.03 lakh crore to Rs 11.23 lakh crore. Data as of 22 Oct 2026.
Quick Answer
HDFC Bank, ICICI Bank, SBI and Bajaj Finance are the 4 picks in this Nifty Financial Services stocks watchlist, with market caps between Rs 6.03 lakh crore and Rs 11.23 lakh crore. HDFC Bank stands out for the largest market cap at Rs 11,22,628 crore, while ICICI Bank offers 5.95% revenue growth in FY26. PE ratios run from 9.82 to 29.21, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Nifty Financial Services stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HDFC Bank, ICICI Bank, SBI and Bajaj Finance meet that test, with market caps from Rs 6.03 lakh crore to Rs 11.23 lakh crore and HDFC Bank offering the largest market cap at Rs 11,22,628 crore. Each of these companies has membership of the Nifty Financial Services index, and net profit rose in FY26 and in the latest quarter.
This list covers companies with membership of the Nifty Financial Services index, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening Nifty Financial Services stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Nifty Financial Services Stocks and Why Do They Attract Multibagger Interest?
Nifty Financial Services stocks are shares of the banks and lenders that lead India’s financial services index. The four here cover two private banks, the largest public sector bank and a leading consumer finance company.
Lenders benefit when credit demand grows and asset quality holds. For Nifty Financial Services stocks, rising profit adds to the case. A sensible way to study Nifty Financial Services stocks is to look at profit growth, returns and valuation side by side. Below, each of Nifty Financial Services stocks gets its own breakdown of growth, returns and valuation. Treat Nifty Financial Services stocks as a research list, since share prices and rankings change with every earnings season.
Nifty Financial Services Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 22 October 2026. SBI has the lowest PE of the group at 9.82, while Bajaj Finance posts the highest return on equity at 16.68%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| HDFC Bank | 694.05 | 11,22,628 | 13.61 | 11.94 | 13.14% | 1.87 | 681.90 to 1,020.50 |
| ICICI Bank | 1,398.50 | 9,61,516 | 16.09 | 12.05 | 15.00% | 2.57 | 1,187.60 to 1,480.00 |
| State Bank of India | 970 | 8,80,754 | 9.82 | 12.05 | 14.29% | 1.50 | 877.05 to 1,234.70 |
| Bajaj Finance | 942.10 | 6,02,984 | 29.21 | 17.68 | 16.68% | 5.29 | 787.90 to 1,176.40 |
HDFC Bank: 20.04% Profit CAGR Since FY22
HDFC Bank is India’s largest private sector bank by assets and serves retail, business and corporate customers through a wide branch and digital network. It reported FY26 total income of Rs 4,95,462.81 crore, up 5.21% year on year, and net profit of Rs 79,219.46 crore, up 7.87%. Net profit has compounded at 20.04% a year since FY22, while total income has grown 31.11% a year.
In the September 2026 quarter, total income rose 9.11% to Rs 1,29,358.69 crore and net profit grew 5.76% to Rs 21,537.09 crore. Domestic institutions raised their holding from 36.26% in September 2025 to 43.63% in September 2026. The stock trades at a PE of 13.61 against an industry PE of 11.94, with a return on equity of 13.14%. The dividend yield is 2.13%.
ICICI Bank: 22.29% Profit CAGR Since FY22
ICICI Bank is one of the largest private sector banks in India, with a strong retail and digital franchise. It reported FY26 total income of Rs 3,12,118.36 crore, up 5.95% year on year, and net profit of Rs 57,673.39 crore, up 5.98%. Net profit has compounded at 22.29% a year since FY22, while total income has grown 18.64% a year.
The stock trades at a PE of 16.09 against an industry PE of 12.05, with a return on equity of 15.00%. In the June 2026 quarter, total income rose 6.86% to Rs 79,689.22 crore and net profit grew 12.62% to Rs 16,209.74 crore. The share price has gained 85.57% over five years. Foreign investors raised their holding from 45.56% in September 2025 to 50.44% in September 2026.
SBI: 23.72% Profit CAGR Since FY22
State Bank of India is the country’s largest lender, with a branch network that reaches every part of India. It reported FY26 total income of Rs 7,12,643.53 crore, up 7.43% year on year, and net profit of Rs 85,168.47 crore, up 7.78%. Net profit has compounded at 23.72% a year since FY22, while total income has grown 15.03% a year.
In the June 2026 quarter, total income rose 7.83% to Rs 1,80,061.86 crore and net profit grew 13.65% to Rs 24,579.04 crore. The share price has gained 92.86% over five years. Foreign investors raised their holding from 9.98% in July 2025 to 10.81% in June 2026. The stock trades at a PE of 9.82 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.82%.
Bajaj Finance: 28.78% Profit CAGR Since FY22
Bajaj Finance is a large NBFC offering consumer, SME, commercial and mortgage loans along with deposits and payment services. It reported FY26 total income of Rs 81,989.50 crore, up 19.09% year on year, and net profit of Rs 19,332.36 crore, up 15.21%. Net profit has compounded at 28.78% a year since FY22, while total income has grown 26.88% a year.
The stock trades at a PE of 29.21 against an industry PE of 17.68, with a return on equity of 16.68%. In the June 2026 quarter, total income rose 18.63% to Rs 23,166.42 crore and net profit grew 27.60% to Rs 6,080.60 crore. Domestic institutions raised their holding from 14.47% in September 2025 to 17.05% in September 2026.
Nifty Financial Services Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these Nifty Financial Services stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Total Income (Rs Cr) | Net Profit (Rs Cr) | Income Growth (YoY) | 4-Year Income CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| HDFC Bank | 4,95,462.81 | 79,219.46 | 5.21% | 31.11% | 20.04% |
| ICICI Bank | 3,12,118.36 | 57,673.39 | 5.95% | 18.64% | 22.29% |
| SBI | 7,12,643.53 | 85,168.47 | 7.43% | 15.03% | 23.72% |
| Bajaj Finance | 81,989.50 | 19,332.36 | 19.09% | 26.88% | 28.78% |
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Institutional Holding in HDFC Bank, ICICI Bank, SBI and Bajaj Finance
Institutional holding shows who is backing these Nifty Financial Services stocks alongside the promoter. The table uses the latest reported quarter for each. ICICI Bank has the deepest institutional backing, with FII and DII together holding 92.22% as of September 2026. Domestic institutions increased their holding over the past year in HDFC Bank (from 36.26% to 43.63%) and Bajaj Finance (from 14.47% to 17.05%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HDFC Bank | Nil | 39.40% | 43.63% | 16.97% | September 2026 |
| ICICI Bank | Nil | 50.44% | 41.78% | 7.78% | September 2026 |
| SBI | 55.47% | 10.81% | 26.64% | 7.08% | June 2026 |
| Bajaj Finance | 54.67% | 19.79% | 17.05% | 8.49% | September 2026 |
Risks to Weigh in Nifty Financial Services Stocks
Being careful with Nifty Financial Services stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Bajaj Finance trades at a PE of 29.21 against an industry PE of 17.68, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Nifty Financial Services Stocks
Picking from Nifty Financial Services stocks comes down to four checks, applied in order.
- Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
- Compare each PE with the industry PE (11.94 to 17.68) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among Nifty Financial Services stocks, HDFC Bank stands out for the largest market cap at Rs 11,22,628 crore, ICICI Bank for 5.95% revenue growth in FY26, SBI for the biggest five-year price gain at 92.86% and Bajaj Finance for the highest return on equity at 16.68%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing Nifty Financial Services stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Nifty Financial Services Stocks to Watch
Which are the best Nifty Financial Services stocks to watch for multibagger potential?
Ans. HDFC Bank, ICICI Bank, SBI and Bajaj Finance are the 4 names this list highlights, with market caps of Rs 11,22,628 crore, Rs 9,61,516 crore, Rs 8,80,754 crore and Rs 6,02,984 crore respectively. HDFC Bank is notable for the largest market cap at Rs 11,22,628 crore. ICICI Bank stands out for 5.95% revenue growth in FY26. SBI offers the biggest five-year price gain at 92.86%. Bajaj Finance brings the highest return on equity at 16.68%. These are watchlist names for Nifty Financial Services stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Bajaj Finance a good stock for long-term investors?
Ans. Bajaj Finance has a return on equity of 16.68%, a PE of 29.21 against an industry PE of 17.68 and a market cap of Rs 6,02,984 crore. Net profit has compounded at 28.78% a year since FY22, and FY26 revenue rose 19.09% while June 2026 quarter net profit grew 27.60%. Long-term returns in Nifty Financial Services stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can SBI become a multibagger from here?
Ans. SBI has already gained 92.86% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in Nifty Financial Services stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 23.72% a year since FY22, and FY26 revenue rose 7.43%. At a PE of 9.82 against an industry PE of 12.05, valuation should be checked against that growth before investing.
What is the market cap of HDFC Bank, ICICI Bank, SBI and Bajaj Finance?
Ans. As of 22 October 2026, HDFC Bank has a market cap of Rs 11,22,628 crore, ICICI Bank has a market cap of Rs 9,61,516 crore, SBI has a market cap of Rs 8,80,754 crore and Bajaj Finance has a market cap of Rs 6,02,984 crore. All of them qualify as largecaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on Nifty Financial Services stocks.
What are the risks of investing in Nifty Financial Services stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Bajaj Finance trades at a PE of 29.21 against an industry PE of 17.68, so earnings growth needs to hold up.
Why is Bajaj Finance trading at a PE of 29.21?
Ans. Bajaj Finance’s PE of 29.21 compares with an industry PE of 17.68. The market is paying a premium for a return on equity of 16.68%, profit growth of 28.78% a year since FY22 and latest-quarter profit growth of 27.60%, which also means the stock is more sensitive if growth slows. Investors in Nifty Financial Services stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in HDFC Bank, ICICI Bank, SBI and Bajaj Finance?
Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 92.22% of ICICI Bank (50.44% and 41.78%), 37.45% of SBI (10.81% and 26.64%) and 36.84% of Bajaj Finance (19.79% and 17.05%). Rising institutional holding is a useful signal in Nifty Financial Services stocks, though it should be read with earnings trends rather than on its own.
