If you are thinking of investing in the stock market, then it can be beneficial for you to take a look at the banking sector. According to a report, some selected banking stocks can give multibagger stock returns of more than 26% in the next year. Let’s know which banking stocks can prove to be a profitable deal for you by investing in them.
HDFC Bank
The country’s largest private bank, HDFC Bank, has a market capitalization of ₹ 15,28,691 crore. 40 analysts have given it a ‘BUY’ rating and have predicted a return of up to 39% in the next year. Institutional investors hold a 56.1% stake in the bank. The bank has controlled its NPA (non-performing assets) well and has shown excellent performance in its quarterly results.
Bank of Baroda
The market capitalization of this government bank is ₹ 1,27,784 crore. 32 analysts have given Bank of Baroda a ‘buy’ rating and expect a return of 33%. Institutional investors hold a 19.8% stake in it. This bank is consistently performing well.
Federal Bank
The market capitalization of Federal Bank is ₹49,149 crore. 32 analysts have given it a ‘buy’ rating and expect a return of 33%. Institutional investors hold a large stake of 59.5% in this bank. This mid-cap bank is doing a great job in the field of retail loans.
City Union Bank
The market capitalization of City Union Bank is ₹15,739 crore. 22 analysts have given it a ‘buy’ rating and expect a return of 32%. Institutional investors hold a 49.9% stake in the bank. This mid-cap bank is very strong in terms of lending to small businesses.
Other major banks that can give tremendous returns
Apart from these banks, there are some other big names that can give good profits to investors.
ICICI Bank Shares
It has a market capitalization of ₹10,26,201 crore. Analysts have given ICICI Bank a ‘buy’ rating and expect returns of up to 29%. This private bank is far ahead in digital banking.
Kotak Mahindra Bank
It has a market capitalization of ₹4,03,690 crore. 37 analysts have given it a ‘buy’ rating, expecting a return of 28%.
State Bank of India (SBI)
It is the largest bank in terms of market capitalization. 37 analysts have given SBI shares a ‘buy’ rating and expect a return of 26%.
These banks have attracted investors’ attention based on their strong financial position and better performance, and in the coming times, these banking stocks can strengthen your portfolio.