Name few banking stocks for short term investment.
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As far as Bank Nifty is concerned there are four major banks that adds the maximum weightage.
1. HDFC Bank
2. Kotak Mahindra Bank
3. SBI
4. Axis Bank
If you are planning for long-term investment, the above four banks are good. But never put all your capital on one sector.
It is always best to diversify your capital to atleast 3 sectors.
9 Best Banks & Financial Companies to Invest in India
The following are the 9 top most finance sector companies/ banks to invest in India for 2024 as per the previous track record.
Best Banking Stocks to Buy in India
Investing in banking stocks can be a good idea, as banks play a major role in the Indian economy. Here are some best banking stocks to invest in India.
Note: The stocks suggested below are as per my research & analysis, please don’t make blind investments without your own research and analysis.
There are many websites to do fundamental & technical analysis to do proper research, consider visiting those sites before investing.
1. HDFC Bank:
HDFC Bank is renowned for its financials, efficient management, and wide range of services across the country.
It has shown consistent growth over the years and it is one of the heavy-weight banks in the indices. The following table gives a quick review of its financials.
2. State Bank of India (SBI):
SBI is one of the largest and oldest banks in India. It has a vast network and a strong brand presence of Indian origin.
If you want to invest for long term in the banking sector, then SBI is also a good choice after HDFC. The ROCE of SBI is slightly lower than HDFC Bank but it gives a good dividend yield.
Those who are looking for more dividends can opt for SBI rather than HDFC.
3. ICICI Bank:
ICICI Bank is known for its diverse product offerings and extensive network. The following table gives a quick review of its financials, market cap, and current market price.
The dividend payout in ICICI Bank is much less than SBI & HDFC banks but the ROE is as good as HDFC Bank.
You can also consider ICICI Bank for long-term investments.
4. Axis Bank Ltd:
Axis Bank is known for its growth-focused approach and it has become one of the top priorities when it comes to banking. With an attractive user interface & responsive mobile application, Axis Bank offers a hassle-free experience in banking.
Analyze its performance in retail and corporate banking in the below table. The dividend yield at Axis Bank is very low compared to the above-listed banks, Axis Bank is not a top priority for those who look for dividends.
Kotak Mahindra Bank:
Kotak Mahindra Bank has been expanding its market share and enhancing customer experience. Consider Kotak Bank when you want to diversify your portfolio in the banking sector.
With its poor dividend yield, Kotak Bank is not a top priority but definitely it is among the top 5 banks in India.
Note: Before investing, research each bank thoroughly, its fundamentals, loan book quality, technical analysis, and market trends.
Analyze the economic environment and policies affecting the banking sector. As we know any economic news in India affects the banking sector first.
Consider diversifying your portfolio by investing in a mix of banking and non-banking stocks to lower risk.
Example: Invest 50% of your capital in Non-Banking & 50% in Banking sectors.