There are more than 5000 companies listed in the Indian Stock market out of which more than 1600 companies are listed at NSE. So, selecting the stocks for investing is never an easy task for investors.
Banking stocks are always the good investments because people never going to stop borrowing funds for purchasing vehicles, houses, or for living their dreams. So, as much as people borrow money the banks will earn. Yeah, the stock price may affect sometimes due to the fluctuations in the interest rates but it's a fact that banking stocks are a good investment from the long-term perspective. So in this article, we are going to discuss the "Top 10 best banking stocks to buy in India in 2021".
Top 8 Banking stocks to buy in India in 2021!
1. HDFC Bank
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HDFC Bank is the largest bank and the third-largest company in India in terms of market capitalization which is Rs. 7,90,212 crores and it comes at the first place in our list of best banking stocks in India. It provides products and services including wholesale banking, retail banking, auto loans, personal loans, mortgages, consumer loans, and credit cards.
HDFC Bank is currently trading at a price of Rs.1497.30. The bank's stock has generated a return of 75.66% in last one year.
Promoters have 25.89% stakes in the company and 39.39% of the holdings are held by the foreign investors.
The stock is considered a low-risk stock as it has volatility of 1.67x as per nifty. So, the stock will give stability to your portfolio and also can generate good returns for you.
If we talk about the Jan-March 2021 quarter results, the bank has reported a jump of 18% year on a yearly basis in net profit.
2. ICICI Bank
pic credit; India.com
ICICI Bank comes at second place in the list of best banking stocks in India with a market capitalization of Rs. 4,44,563.06 crores. It provides products like online money transfer, tracking services, current accounts, saving accounts, recurring deposits, time deposits, mortgages, personal loans, auto loans, and credit cards.
ICICI Bank's stock is currently trading at a price of Rs.642.45 and it has compounded its shareholder's money at a CAGR of 119.49% in the last one year.
Mutual funds have 26.07% stakes in the company, Domestic institutional investors have 41.09% stakes in the company and 47.80% of the holdings are held by the Foreign investors. Promoters don't have any stakes in the bank.
The stock is 2.15x volatile as per nifty so it has been classified as a moderate-risk stock but this is the stock you must have in your portfolio if you want to invest some in the banking industry.
When we have a look at its Jan-March quarter results, then the figures come out are too amazing. The Bank has reported a jump of 260.5% growth in standalone profit on a year-on-year basis.
3. Kotak Mahindra Bank
pic credit; Hindustantimes.com
Kotak Mahindra Bank comes in 3rd place in our list of Best banking stocks to buy in 2021 with a market capitalization of Rs.3,48,434.43 crores and it is the fourth-largest bank in terms of market capitalization. It provides products and services like saving accounts, current accounts, credit cards and debit cards, personal loans.
Kotak Mahindra Bank's stock is currently trading at a price of Rs.1757.65 and it has generated returns at a CAGR of 52.42% in the previous one year.
Promoters of the company have 26.02% stakes in the company and 13.32% of the holdings are held by the foreign investors.
The stock has a volatility of 1.81x as per nifty so it has been considered as a low-risk stock. You can keep this stock in to your portfolio if are the long-term player.
When it comes to the results of the Jan-March quarter of 2021, the bank has reported a jump of 33% in the net profit on a year-on-year basis.
4. Axis Bank
pic credit; catchnews.com
Axis Bank comes in 4th place in our list of best banking stocks in 2021 with a market capitalization of Rs.2,23,985.82 crores. Axis Bank is a private sector bank headquartered in Mumbai, Maharashtra. The Bank offers a large list of products and services including current accounts, saving accounts, credit cards, debit cards, and personal loans.
13.58% stakes of the company are held by the promoters of the company and 22.67% of the holdings are held by foreign investors.
The stock is considered a moderate-risk stock as it has volatility of 2.22x as per nifty. If you can include this stock in your portfolio then the stock can be a wealth builder for you in the long term.
Axis Bank's stock is currently trading at a price of Rs.730.90 and it compounded its shareholder's money at a rate of 114.15% in the last one year.
The Bank has reported a rise of 11% in the net interest income in the Jan-march quarter of 2021, on a year-on-year basis.
5. State Bank of India
pic credit; livelaw.in
State Bank of India is the largest public-sector bank with a market capitalization of Rs.3,58,055.41 crores and it comes at 5th place in our list of best banking stocks for investing in 2021. The Bank also offers current accounts, saving accounts, credit cards, debit cards, net banking, etc.
State Bank of India's stock is currently trading at a price of Rs.401.20 and it has generated returns at a CAGR of 164.99% in the last one year. The bank is currently holding the highest market share of 45.11% (As per ticker).
Promoters of the company have 57.63% stakes in the company and 24.26% stakes are held by the foreign investors.
The stock is 2.25x volatile as per nifty so, it has been considered as a moderated risk stock but it is a solid stock to keep in to your portfolio.
When we have a look at its Jan-March quarter 2021 results, the bank has reported a rise of 81% in net profit on year-on-year basis.
6. IndusInd Bank
pic credit; justdial.com
Headquartered in Pune, IndusInd Bank is an Indian bank and it comes at 6th place in our best banking stocks to buy in 2021 list with a market capitalization of Rs.78,860.32 crores. The Bank offers commercial, transactional, and electronic banking products and services.
IndusInd Bank's stock is currently trading at a price of Rs.1016 and you will be amazed to see that it has generated returns at a CAGR of 192% in the last one year. Over the last five years the market share of the bank has been increased from 4.24% to 5.85%.
16.55% stakes are held by the promoters of the company out of which 6.02% are pledged and 50.91% of the holdings are held by foreign investors.
Because of its volatility of 2.86x as per nifty, the stock is considered a moderate-risk stock but the stock has a good potential to compound your wealth with good returns in the long term.
IndusInd Bank has reported a huge rise of 190% in net profit in the Jan-March quarter of 2021 on a year-on-year basis.
7. Bandhan Bank
pic credit; moneycontrol.com
Headquartered in Dalhousie, Kolkata, West Bengal, Bandhan Bank Limited is an Indian Banking and financial services company and it comes at 7th place in our list of best banking stocks in 2021 with a market capitalization of Rs.48,262 crores.
Bandhan Bank's stock currently trading at a price of Rs.299.65 and it has compounded its investor's money at a CAGR of 48.23% in the last one year. Over the last 5 years, the bank's market share has been increased from 0 to 2.03% as per ticker.
If we talk about the financials of the bank, Bandhan bank has reported a fall of 80% in net profit which is surely is not a good figure for the bank and investors as well.
39.99% stakes of the company are held by the promoters of the company and foreign investors have 34.91% stakes in the company.
The stock is considered as a moderate risk stock as it has volatility of 2.45x as per nifty.
8. Federal Bank
pic credit; dsim.in
Federal bank is a major Indian commercial bank headquartered in Aluva, Kochi and it comes at 8th place in our list of best banking stocks in 2021 with a market capitalization of Rs.16,998.23 crores.
Federal Bank's stock is currently trading at a price of Rs.85.15 and it has generated returns at a CAGR of 121.46% in the last one year. Yeah, the market share of the bank is decreased over the last five years from 2.9 to 2.5% but the stock has a good potential to compound our money.
If we talk about the financials of the bank, the bank has reported a 59% jump in net profit in the quarter of Jan-march 2021.
None of the holdings are in the promoter's pocket, 30.23% of stakes are held by the mutual funds and foreign investors have 24.51% stakes in the company.
The stock is classified as a moderate risk stock as it has volatility of 2.45x as per nifty. If you are ready to take risks to earn high returns then you can make a little investment in this stock also.
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Disclaimer
Above all the data (Stock prices, market capitalizations, market share, returns profile) are as of 23rd of May 2021, these may vary as the stock prices will be changed. The author is just sharing his opinion meanwhile he is not giving you any advice on buying these stocks. Before investing in stocks, we would suggest you to consult with your financial advisor or do a thorough research by yourself. So, let's end the article with these 8 best banking stocks in 2021. Happy Investing!! ✌✌
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