Banking Stocks in India to Invest In

Posted by : sachet | Tue Jan 28 2025

Banking Stocks in India to Invest In

Banks often provide liquidity to business enterprises and people like us. Investing in banking stocks could be a stepping stone to generating wealth in the coming years. Because of their high growth potential, investors can earn healthy returns. Banks in India are divided into three different categories: Public Sector Banks, Private Sector Banks, and Small Finance Banks. This piece will review the list of bank stocks in India and their PE (Price-to-Earnings) ratios. Keep scrolling to explore. 

Banking Sector in India: An Overview

India’s banking sector upholds the network of small and giant financial institutions to offer financial services such as deposits, lending, investing, and transaction facilitation. The RBI (Reserve Bank of India) acclaimed that the banking industry is well-regulated and embraced with innovative models. 

The net profit of India’s banking industry has surpassed INR 3,00,000 crores. Also, the government’s initiatives, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Unified Payment Interface (UPI), and Immediate Payment Services (IMPS), influenced the sector’s reach across the country. Now is the right time to explore the best banking sector stocks to buy.

Banking Stocks List

Stock NameLTP (in ₹)Market Capitalisation (in ₹ Cr.)52-Week High (in ₹)52-Week Low (in ₹)
HDFC Bank Ltd.1,736.0013,32,0001,794.001,363.55
ICICI Bank Ltd.1,244.008,81,0001,362.35914.75
SBI Ltd.802.407,15,000912.00555.15
PNB Ltd.100.601,16,000142.9075.60
Canara Bank Ltd.97.3488,740128.9077.80
Bank of Maharashtra Ltd.52.2740,29073.5042.85

*Data is updated as of 20th November 2024

Overview of Banking Stocks in India

  1. HDFC Bank Ltd. 

HDFC Bank Ltd. is an Indian financial services corporation founded in 1994 and is headquartered in Mumbai, Maharashtra. The bank operates with around 8,700 branches across the country and over 20,000 ATMs. The key services of this financial institution include retail banking, lending, credit cards, facilitation of transactions, and wholesale banking. Recently, in August 2024, HDFC Bank Ltd. announced its user-lever programmability on Digital Ruppe. It will help users to make a guaranteed payment on every transaction. 

The RBI (Reserve Bank of India) considered it a D-SIB (Domestic Systematically Important Bank), which means it is too big to fail. This accreditation of RBI made HDFC Bank Ltd. one of the top banking stocks in India to buy. The market capitalisation of this bank is INR 13,32,000 crores, and its PE (Price-to-Earnings) ratio is 19.15. 

  1. ICICI Bank Ltd. 

The company was founded in January 1955 and is headquartered in Mumbai, Maharashtra. ICICI Bank owns over 6,600 branches and 16,100 ATMs in India. Moreover, giant network influenced the bank’s presence in more than 10 nations, including Singapore, Hong Kong, China, the United States, and more. 

ICICI Bank’s iMobile Pay provides hundreds of services to more than 10 million active users in India. The successful launch and establishment of this interoperable application gathered the attention of various investors seeking higher returns from the top banking stocks in India. The market capitalisation of  INR 8,81,000 crores, and its PE (Price-to-Earnings) ratio is 18.78.  

  1. SBI Ltd. 

SBI (State Bank of India) Ltd. has a legacy of more than 200 years and has received accreditation for being the most trusted bank in India. It was founded in 1955 but came from its predecessor, the Imperial Bank of India. SBI is currently headquartered in Mumbai, Maharashtra, and holds around 23% of the market share. In 2024, this bank ranked 55th in Forbes Global 2000.  

SBI owns around 2,400 branches to operate and 11,300 camps for PMJDY. Not only in India, but this financial institution is also excelling in foreign nations such as Nepal, South Korea, the United States, and more. The market capitalisation of this bank stock in India is INR 7,15,000 crores, and its PE (Price-to-Earnings) ratio is 10.01. 

  1. PNB Ltd. 

PNB Ltd. is the 2nd largest public sector bank (PSB), founded in 1894 and headquartered in Dwarka, Delhi. With over 150 years of legacy in the industry, PNB has created a customer base of 180 million people. The bank owns over 12,200 branches and 13,000+ ATMs in India. Management’s impeccable banking strategy played an important role in influencing its global presence in nations like Dubai, Kabul, Hong Kong, Australia, and more. 

The best part of PNB Ltd. is its 24×7 WhatsApp banking services launched in 2022. The immense potential to serve customers encouraged most investors to invest in this one of the top banking stocks in India. The market capitalisation of this stock is INR 1,16,000 crores, and its PE (Price-to-Earnings) ratio is 7.67. 

  1. Canara Bank Ltd. 

Canara Bank Ltd. was founded in 1906 and is headquartered in Banglore. This bank owns and operates with 9,700+ branches and over 13,400 ATMs. The bank is involved in providing different financial services to its customers, including lending, facilitating transactions, depositing, retail banking, and business banking. Despite the robust domestic presence, Canara Bank Ltd. also operates in areas such as London, Dubai, and New York.

Over the past few decades, the bank’s revenue has shown 19.19% annual growth and it holds around 10.13% of the whole market share in the country. The market capitalisation of this stock is INR 88,740 crores, and its PE (Price-to-Earnings) ratio is 5.52. 

  1. Bank of Maharashtra Ltd. 

Bank of Maharashtra Ltd is a public sector bank founded in 1935 to serve businesses and individuals with their financial needs. It operates with around 30 million customers and 2200+ branches in India. Investors are showing their keen interest in this one of the top banking stocks in India as it has the capability of adopting the latest technology in a timely manner and catering to products and services. Some of the banking services from their portfolio include business banking, retail banking, money lending, and so on.

Recently, the bank announced a 44% rise in its net profitability, which encouraged most investors to invest. This bank’s high growth potential to deliver healthy returns is a key reason for investors’ retention. The market capitalisation of this stock is INR 40,290 crores, and its PE (Price-to-Earnings) ratio is 7.67. 

Top Banking Stocks With PE Ratio

Stock NamePE (Price-to-Earnings) Ratio
ICICI Bank Ltd.18.78
HDFC Bank Ltd.19.15
SBI Ltd.10.01
Bank of Maharashtra Ltd.7.55
PNB Ltd.7.67
Canara Bank Ltd.5.52

*Data is updated as of 20th November 2024

How to Invest?

It is good to invest in banking stocks in India. But for some beginners, it could be complex. Start investing now with this step-by-step guide.  

  • Reach out to a broker and open your demat account. 
  • Get all the documents verified to eliminate the hurdles in your investing practices. 
  • Add the required funds to your demat account. 
  • Research bank stocks or use stock advisory platforms like Univest to create a diversified portfolio. 
  • Select bank stocks and enter the quantities you wish to buy. 
  • Review your order and complete the transaction on the current market price of the stock. 

To Conclude

Top banking stocks in India seems to be an opportunity for investors looking to diversify their portfolios. With a net profit of over INR 3,00,000 crores, the industry has provided immense growth to investors in terms of capital appreciation and dividend payouts. The adoption of digital technology and UPI brought a drastic reform and could take the banking sector to a new high. Conduct your research to invest in the bank stocks, or you can also get assistance from the best stock advisories available in the market. 

FAQs

1. Is the banking sector resilient to economic downturns?

Ans. Yes, the banking sector stocks are resilient to long-term economic downturns. But, these can also be affected by economic conditions in a short time. Investors consider these shares as they have the potential to rise up faster than other sector’s stocks. Conduct your own research before investing in any stocks to earn stable returns. 

2. Who should invest in banking stocks?

Ans. Here are the types of investors for whom bank stocks could be a stepping stone. 

  • Dividend-Oriented: Banking stocks generally announce high dividend payouts for their investors. Investors seeking high dividend income can choose these stocks and earn regular income from their investments. 
  • Risk-Taker: Investors with moderate risk tolerance capabilities can surely consider bank stocks in India as they offer exposure to the financial sector with low risk in the long term.  
  • Long-Term Oriented: Bank stocks can offer higher returns of around 100% to 200%, but mainly in the long run. Investors seeking to hold stocks for more than 12 months can invest in such shares and generate higher returns. 

3. Which bank stocks are good to buy now?

Ans. Here are some of the top banking sector stocks that have the potential to generate higher returns in the coming years. 

4. Is investing in banking sector stocks worth it?

Ans. Bank stocks have become a popular investment option today. It offers impressive dividend payouts and attractive returns to the investors. Investors are considering investing in such stocks because of its high potential to grow in the upcoming years. 

icon

100% Safe & Secure Platform.

Univest encrypts all data and transactions to ensure a completely secure experience for our members.

Copyright

2025 Univest. All rights reserved. | Designed with ❤️ in India
About Univest
About: Univest is a cutting-edge stock market platform designed to help traders and investors maximize their returns with expert-driven advisory services and seamless trading execution. Whether you're a seasoned trader or just starting, Univest simplifies your investment journey with actionable trade recommendations, AI-powered portfolio insights, and a fully integrated brokerage experience. With Univest, you gain access to proven stock market advisory, offering expert trade ideas for stocks, futures, options, and commodities. Our one-click trade execution feature eliminates slippage, ensuring instant execution through our advisory-first brokerage. Smart portfolio management allows you to identify underperforming stocks, optimize your investments, and receive real-time alerts. Additionally, Univest provides seamless investment opportunities beyond stocks, including mutual funds, bonds, fixed deposits, and insurance (coming soon). Join over 40 lakh active investors who trust Univest to make informed and profitable trading decisions. Start investing smarter today! 🚀  
Attention Investors : To ensure a smooth trading experience and prevent unauthorized transactions, investors must update their mobile number and email ID with their stockbroker or depository participant. As per regulatory requirements, investors are required to pay a stipulated amount as an upfront margin for trading in the Cash/FO segment. We encourage all investors to regularly check their securities in the Consolidated Account Statement (CAS) issued by depository to verify their holdings.Always verify alerts and transaction details received directly from the exchange or NSDL before proceeding with any trades. Please do not make payments through unverified email links, WhatsApp, or SMS. Always trade through a registered stockbroker and verify all details before making financial decisions.
 
Disclaimer: Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. For more disclaimer /disclosure, visit https://univest.in/stock-broker or Univest App.We collect and use your contact information for legitimate business purposes, including providing updates on our products and services. We do not sell or rent your contact information to third parties. By submitting your details, you authorize us to contact you via Call/SMS, even if you are registered under DND. This authorization remains valid for 12 months.For grievances, please contact us at hello@unibrokers.in .
 
Univest Stock Broking Disclosures
Univest Stock Broking Private Limited - SEBI Reg. No. INZ000317437 (Stock Broker), NSE TM Code: 90392, BSE TM Code: 6866, MCX TM Code: 57290 and ICCL- Self Clearing Member Code: 6866, SEBI Reg. No. IN-DP-779-2024 (Participant), NSDL DP ID: IN304748.
 Risk Disclosures on Derivatives
1. 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
2. On an average, loss makers registered net trading loss close to ₹ 50,000
3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
4. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Attention Investors: As per NSE circular dated July 6, 2022: https://nsearchives.nseindia.com/content/circulars/INSP52900.pdf, BSE circular dated July 6, 2022: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20220706-55, MCX circular dated July 11, 2022: https://www.mcxindia.com/docs/default-source/circulars/english/2022/july/circular-418-2022.pdf?sfvrsn=9401991_0, investors are cautioned to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. 
Investors are further cautioned to avoid practices like:
a. Sharing 
i) trading credentials – login id and passwords including OTPs.
ii) trading strategies,
iii) position details.
b. Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.
c. Writing/ selling options or trading in option strategies based on tips, without basic knowledge and understanding of the product and its risks.
d. Dealing in unsolicited tips through platforms like Whatsapp, Telegram, Instagram, YouTube, Facebook, SMS, calls, etc.
e. Trading / Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.
 Kindly read the Advisory Guidelines For Investors as prescribed by the Exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client’s assets: https://nsearchives.nseindia.com/content/circulars/INSP49434.pdf
Kindly, read the advisory as prescribed by the Exchange with reference to their circular: NSE/ISC/51035 dated January 14, 2022 regarding Updation of mandatory KYC fields by March 31, 2022: https://www.nseindia.com/resources/exchange-communication-circulars# 
Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from NSDL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (Broker, DP), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Univest Stock Broking Private Limited and offering such services, please send us an email at hello@unibrokers.in
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.
Update your email ID and mobile number with your stockbroker/depository participant and receive an OTP directly from the depository on your registered email ID and/or mobile number. Check your securities/mutual funds/bonds in the Consolidated Account Statement (CAS) issued by NSDL every month.
Attention Investors: SEBI has established an Online Dispute Resolution Portal (ODR Portal) for resolving disputes in the Indian Securities Market. This circular streamlines the existing dispute resolution mechanism, offering online conciliation and arbitration, benefiting investors and listed companies https://www.sebi.gov.in/legal/circulars/jul-2023/online-resolution-of-disputes-in-the- indian-securities-market_74794.html. ODR portal for Investors - https://smartodr.in/login.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances.
arrow down