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Best Bank Stocks to Buy – Compare Top 10 Bank Shares to Buy in India

Last Updated Date - Mar 21, 2023

During the global pandemic, Indian Bank shares sank to lifetime lows. The market was seeing a panic selling. For a long time, bets were supposed to be off until the best bank companies in India came to the rescue.

Once again, the prices of some of the best bank shares have been hiked. Still, if it has been a bit hard for you to trust, read on. In the article, we bring you top bank stocks to buy.

Overall research on these stocks indicates that these shares are all set to mark a new high in the upcoming days.

After running into the category of unlucky investors, if you want to enter a profitable zone, perhaps these stocks are made for you.

Know About Bank Sector In India

During 2020-2021, when inflation was ticking up in the nation, some top bank companies in India were generating big returns for investors.

And it’s no denying; they were evidencing that they are the best banking sector stocks to buy. After all, we can’t leave the former growth of banking shares in India.

At present, the Indian banking sector is picking up a consistent growth of 8.5% per year. Regulations by the Government and technology are to blame for sustaining a stable growth rate in the banking sector.

Beyond a doubt, if you also plan to invest in Bank shares, you have got the right vision. But to guide you for the best option, we have rounded up some best banking shares in the discussion below.

We shortlist every share carefully to ensure your investment decision is profitable in the end.Top 10 Bank Stocks to Buy in India - List of Best Bank Shares to Buy

Top 10 Bank Stocks to Buy in India – List of Best Bank Shares to Buy

Hunt for the private bank shares to buy is a new trend among investors. After all, the Indian banking sector’s performance isn’t just boosting economic growth but also adding more volume to investors’ portfolios.

It is very clear that the banking sectors are the backbone of India’s economy. That being said, why should you invest in at least one share that belongs to the financial service provider or banking sector.

The table gives you a quick glimpse of the best bank shares in India, living up to investors’ expectations. So that you don’t encounter confusion, we even discuss major things to consider when buying or trading a banking stock.

But before that, let’s discover more about these bank companies in brief.

HDFC Bank Ltd. – Best Public Bank Stocks in India

From Rating, a number of customers to banking facilities, by all means, HDFC has become a top-rated banking firm in the nation. Set up in 1994, the firm became one of the well-liked banking services providers of the century.

HDFC Bank Ltd. - Best Public Bank Stocks in India

Apart from that, the firm is also entitled to the best public bank stocks in India. As of April 2021, HDFC Bank Ltd is cognized as the 10th largest private sector bank in the nation.

They are particularly known for personal loans, business loans, and NRI banking facilities.

Moreover, the bank marks a significant contribution to the economic development of the nation employing more than 134,000 people in its team.

The Mumbai-based banking firm enjoys a consistent rise in revenue and net income year on year. Without a doubt, HDFC Bank Ltd is a reliable pick for the portfolio.

Products or Services

These are the major offering by HDFC Bank Ltd pushing to push the growth of the company in the share market –

  • Personal Loan, Home Loan, Business Loan
  • Money Transfer, International Transfers
  • Credit Cards, Debit Cards, and Net Banking
  • Bill Payments
  • Fixed Deposit, Recurring Deposits, Mutual Funds
  • Brokerage Services
  • NRI, SME, Wholesale, Agri, and Other Services

Why invest in HDFC Bank Ltd?

HDFC Bank Limited can never go wrong in any way when it comes to the top bank shares to buy.

From 2017 to 2021, the prices of HDFC Bank jumped by 95.81%. It gives a solid reason why you should think about investing in HDFC.

However, it is not just because the stock is generating impressive returns. But also because it proves economists and market analysts. During a global pandemic, predictions were that HDFC would fall, and it happened.

But the effect was not lasting. Soon the stock gets a sharp recovery, and the price of HDFC Ltd. rises by 106.52% after creating a low on April 3, 2020. Also, the profitability of the company was consistent.

HDFC Bank Stock predictions say that the stock prices will rise in the next few months.

ICICI Bank Ltd. – Best Public Bank Shares to Buy

ICICI Bank Ltd is unarguably the best public bank shares to buy. However, the bank is a no.1 for many customers for its top-rated services.

ICICI Bank Ltd. - Best Public Bank Shares to Buy

Since its inception, the financial service company has carved a notable place deep inside the heart of people. Started in 1994, ICICI bank has presently become one of the leading private sector banks in India.

With a giant network of 5,288 branches and 13,723 ATMs, it builds its reach to every customer in the nation. ICICI Bank even expands its footprints to global territory, making it a multinational banking firm as well.

But services of ICICI Bank Ltd. aren’t just limited to loan and transaction facilities. The bank offers much more to customers to stay popular on the chart, so investors also benefit from ICICI Bank by becoming its investors.

Products or Services

Below we break down a list of services offered by ICICI Bank Ltd.

  • General Banking Services
  • Cards Services
  • Home Loan, Personal Loan, Business Loan services
  • Fixed Deposit, Recurring Deposit, and Mutual Funds
  • Insurance Services
  • Brokerage Services and much more

Why invest in ICICI Bank Ltd?

This one of the most impressive bank stocks in India has generated about 165.79% return on investment over the past five years.

The financial service company is primarily known for its outstanding and reliable banking services. A similar relationship company builds with investors.

They trust ICICI bank; that’s why after experiencing a sharp downtime, the company jumps back to yield massive returns on investment.

From April 3, 2020, to January 14, 2022, ICICI Bank Ltd generated about 186.08% return on investment.

This highlights the trust of investors in ICICI Ltd. Moreover, the company even invests a big amount in the promotion to build a lasting impression among customers.

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SBI Ltd. – Public Bank Share Price

SBI Ltd also garners a notable spot among the top bank sector stocks. The Government held bank is one of the biggest financial companies in India. But that’s not enough.

SBI Ltd. - Public Bank Share Price

Set up on July 1, 1955, SBI Ltd today has become an India-born multinational public sector bank and 43rd largest bank globally.

Most notably, the bank is also the fifth-biggest employer accounting for 245,652 jobs in the nation.

The Government-owned bank has been operational since the British empire. Hence, you will be investing in one of India’s oldest banks by becoming an SBI Ltd investor.

Most notably, the Reserve Bank of India takes a 60% stake in SBI, highlighting the significance and reliability of the share in the market.

Products or Services

Catch a glimpse of products and services offered by the top public sector bank in India –

  • Personal Loan, Business Loan, Home Loan, and Other Loans
  • Digital Banking Facilities
  • Cards Services
  • General Banking Services
  • Insurance Services
  • Trading and Investment Services and much more

Why invest in SBI Ltd?

Let’s figure out the public bank share price that makes investors hooked on SBI Ltd. The stock is one of the most affordable as its price ranges between 200 – 400.

But recently, the company’s share jumped by 250%, after a steep fall in the mid of 2020. As of March 11, 2022, SBI Ltd’s share value is 470.85.

However, the financial service providing the company’s revenue and net income was the most profitable. The company marked a lifetime high in its revenue and net income figure recently by the end of the financial year 2021.

You can wait for the price to drop below 400 prices to find a BUY Opportunity as Expectancies are high from the stock.

Kotak Mahindra Bank Ltd. – Top Bank Companies in India

Let’s jump straight to our next best option in the list of top bank companies in India, Kotak Mahindra Bank Ltd.Kotak Mahindra Bank Ltd. - Top Bank Companies in India

The private bank is renowned for its outstanding services. Since 2003, Kotak Mahindra Bank has continued to evolve as a well-liked destination for customers.

The bank offers a myriad of financial services and banking facilities in both the corporate and retail sectors.

From personal finance to investment banking, Kotak Mahindra Bank Ltd works pretty well. Thus year on year, it continues to emerge as a powerful share for investors as well.

The financial firm has approx 73,000 employees with reported branches 1600+ across the nation.

Products or Services

Let’s watch the products and services offered by Kotak Mahindra Bank Ltd.

  • Bank account services and facilities
  • Cards facilities
  • Loan facilities
  • Insurance facilities
  • Trading and investment services
  • Business services and much more

Why invest in Kotak Mahindra Bank Ltd?

Without noticing the bank share price, it is hard to proceed. So let’s discuss. Kotak Mahindra Bank Ltd. currently moves between 1600 to 2000 price ranges.

This depicts an incredible opportunity for investors because it isn’t a bubble but a stable growth pattern that shares keep following after recovering from a sharp drop in 2020.

From 2017 to 2022, the share has generated a 107.62% return on investment. More operations and schemes launched by Kotak Mahindra Bank are underway. Altogether, you may set high expectations from the share.

The company has a strong balance sheet which attracts all types of Investors.

Axis Bank Ltd. – Top Private Bank Stocks in India

All the way from the list of top private bank stocks in India, Axis Bank Ltd establishes itself in a remarkable place. The banking company, formerly known as UTI bank, has its giant network established throughout the nation. Axis Bank Ltd. - Top Private Bank Stocks in India

The Online Banking Facilities of Axis Bank is renowned among the top-notch. Beyond a doubt, the company has been doing a brilliant job in the consumer market for a long time.

But the company’s excellence is also not far from the financial market. Set up in 1993, the Ahmedabad-based banking firm is recognized among the superbly performing NSE Listed shares.

However, the company is primarily known for its broad-ranging services offered to mid-size and large-size companies.

Products or Services

These are the products and services offered by Axis Bank Ltd. Let’s watch –

  • Personal finance services
  • Business finance services
  • NRI services
  • Loans services
  • Cards and other digital financial services
  • SIP, Investment, Mutual Fund, and investment services
  • Insurance and tons of other banking facilities.

Why invest in Axis Bank Ltd?

The private bank share price is much more affordable. As of March 11, 2022, Axis Bank Ltd costs around 691.25 per share.

However, the market performance of Axis Bank Ltd is fairly stable. After witnessing a sharp drop in the year 2020, the banking firm’s share prices float around that similar price pattern as it was a couple of years back.

This is a fairly great signal and not a false bubble. The company performed a bit low last year but bounced back with more revenue and net income by the end of 2021.

Indusind Bank Ltd. – Top 10 Bank Stocks

Indusind Bank Ltd is another great option for aspiring investors. The banking company is highly popular for its electronic banking solutions. From retail to corporate, the bank serves customers through diverse services.

Indusind Bank Ltd. - Top 10 Bank Stocks

Among the top 10 bank stocks, Indusind Bank Ltd starts its operation with a capital of Rs 100, 60% of which was raised from domestic investors, whilst a 40% stake of the company is owned by international investors.

The bank has 2,015 Branches and 2,886 ATMs spread throughout the nation, with employees whopping around 29,661. But apart from all these, company’s share prices becomes a debated topic that we discuss next. Before, let’s observe the major products and services the bank serves.

Products or Services

Here’s a quick recap of the products and services offered by Indusind Bank Ltd.

  • General Banking Services
  • Personal Loan, Home Loan, Business Loan, and Other Loans
  • Digital Banking Facilities
  • Cards Services
  • Insurance Services
  • Trading and Investment Services and much more

Why invest in Indusind Bank Ltd?

Let’s try to understand the banking share price pattern and how it moves on the financial chart.

The share price for a long has been stable on the financial charts until the global pandemic brings a significant fall in the share price by the start of the year 2020.

But the fall is expected for the short term as the share has recovered almost half of its actual share price to date. Thus it is a great BUY Opportunity as the share is creating the best lower levels for long-term investors.

Bank Of Baroda Ltd. – Best Bank Stocks to Buy

The fourth-largest nationalized bank in the nation, Bank of Baroda Ltd, is also not far from ruling the hearts of investors.

Bank Of Baroda Ltd. - Best Bank Stocks to Buy

The banking firm has become one of the best bank stocks to buy as it enters the 100 price range in the year 2017.

Set up in 1908, the Bank of Baroda is one of the oldest banks owned by the Indian Government. With a global presence, the banking company even gives solid proof of its global footprints.

The bank employs more than 82,886 in its broad banking network. Thus investors can feel confident about the futuristic performance of the share.

Products or Services

These are the key products and services Bank of Baroda Ltd. is primarily known for –

  • Personal Banking Services
  • Business Finance Services
  • Banking Loans
  • Trading and investment
  • Insurance Services
  • Digital Products offerings
  • Other services

Why invest in Bank Of Baroda Ltd?

Even though the stock couldn’t stay at the level above the 200 price range, one of the popular bank shares in India still living up to the hopes of investors.

After a steep fall in the mid-2020, Bank of Baroda jumps back to the desired price levels, in between 100-150 price ranges.

And it’s no surprise that it could be a potential BUY opportunity for investors as the future is expected to bring the most out of BOB’s current returns on long-term investment.

The annual growth pattern of Bank of Baroda Share is also in green. However, government schemes integrated banking services and facilities could be a potential growth deriving factor.

Bandhan Bank Ltd. – Top Bank Stocks to Buy

Bandhan Bank Ltd is a pioneering name in the banking sector. Most notably, it is one of the top bank stocks to buy nowadays for certain good reasons.Bandhan Bank Ltd. - Top Bank Stocks to Buy

But before that, let’s check out the share’s background. Founded in 2001, the small finance banking firm has evolved into a big finance corporation of the century.

To date, the bank is available in the present in 34 out of 36 states, which is an achievement itself.

Year on year, the bank sees a big hike on both financial and market charts. However, the financial year 2021 went a bit disappointing for the company. Still, the company enjoys a profitable position.

Products or Services

These are the major products and services offered by Bandhan Bank Ltd.

  • Personal loan
  • Business Loan
  • NRI Banking Services
  • Banking Facilities and Much more

Why invest in Bandhan Bank Ltd?

One of the top-rated and increasingly soaring bank companies in India is Bandhan Bank Ltd. Within four years, the company generated returns on investors by multiple folds.

But it’s worth noting that stock may not be ideal for a long-term investment for its unstable price. Bandhan Bank Ltd follows a highly volatile price pattern.

Thus it can yield a huge return on investment for short-term or day traders.

IDBI Ltd. – Best Bank Companies in India

IDBI Ltd is another wonderful choice for investors willing to invest in banking shares.IDBI Ltd. - Best Bank Companies in India

The bank for long has been establishing its name in the list of best bank companies in India. But now, the share continues to drag the attention of investors.

Set up on July 1, 1964, the company struggles to stand out in its early growth phase. But now, the NSE-listed firm has become a favorite penny stock for many investors.

Particularly after the global pandemic, the company achieved a striking difference in its revenue and net income stream today and a few years back.

By the end of the financial year 2021, the company earns 219.13% higher revenue than the former year.

Products or Services

These are the major products and services offered by IDBI Ltd bank –

  • Personal banking services
  • Corporate banking services
  • MSME services
  • AGRI services
  • NRI services

Why invest in IDBI Ltd?

If you are searching for an affordable public bank stock to buy, perhaps you need to invest in IDBI ltd. Many national, corporation banks, small finance banks, and public banks root with IDBI Ltd.

This builds a solid reason why you should invest in IDBI Ltd. However, prices of the share currently follow a stable growth pattern, but it could be an early stable level for a big opportunity hereafter.

Canara Bank Ltd. – Top 10 Bank Shares to Buy

Last but a very obvious choice, Canara Bank Ltd also falls into the list of top 10 bank shares to buy.

Canara Bank Ltd. - Top 10 Bank Shares to Buy

The stock is owned by the Government of India, operational under the ministry of finance. Set up in 1906, the company became one of the pioneering names for investors.

After all, the bank doesn’t just serve national clients but builds a connection with international customers as well through its head offices located in Dubai, London, Hong Kong, and New York.

Currently, the banking firm employs 88,213, evidencing its solid presence in the sector.

Products or Services

Let’s talk about major products and services offered by Canara Bank Ltd.

  • Personal Banking
  • Corporate Banking
  • NRI banking
  • NET banking
  • Government Banking Services

Why invest in Canara Bank Ltd?

It is unarguably the best public bank shares to buy, but before you jump straight to the stock. It’s worth noting that Canara Bank Ltd for long had been in a bearish trend.

But soon, the company recovers and currently floats between its average price levels.

As of March 11, 2022, Canara Bank Ltd’s price was marked around 200 price ranges that were about 83 back on May 15, 2020, after falling from its lifetime high reported as on November 3, 2017, at 400 price point.

Beyond a doubt, the share has recovered almost half what it has lost in the former years. In a nutshell, a great BUY opportunity is visible.

Canara Bank Share Forecast suggests that it has very good future potential.

PNB Ltd. – Bank Sector Stock to Buy

PNB, aka Punjab National Bank, is an affordable and highly popular bank sector stock to buy. The NSE Listed stock falls into the penny stocks category.

PNB Ltd. - Bank Sector Stock to Buy

As of March 12, 2022, PNB may cost you around Rs. 36 per share. If summarized better, PNB is an Indian nationalized bank. Headquartered in Delhi, the bank currently has its myriad of branches spread across the nation.

Set up in 1894, PNB was even entitled as the second-largest bank owned by the Indian Government.

However, the bank even has its branches opened in international regions. The bank has its subsidiaries in the UK, Dubai, Hong Kong, and a few other nations.

The government-owned bank employs more than 101,802 people in its largest bank network. All these reasons conclude PNB is one of the best bank shares to consider, including your portfolio.

AU Small Fin. Bank Ltd. – Banking Companies’ Stocks to Buy

AU Small Fin. The bank is all set to become a big corporation in the banking sector. The banking firm is popular nowadays for its new offers and upgraded banking model.

AU Small Fin. Bank Ltd. - Banking Companies' Stocks to Buy

However, the bank name may sound like a new option, but it’s worth noting that AU Small Fin Bank has been in existence since 1996.

Originally, AU was set up as a vehicle finance company. Soon, the banking firm began providing financial services to individuals and small businesses.

And today, the small bank name stands tall in the list of leading banking companies’ stocks to buy.

The NSE Listed firm has even earned a notable rank in the list of Fortune India. Moreover, the remarkable growth the stock price attains is also not hidden.

Over the past fivers, AU stock has generated about 99.66% returns on investment. However, alone in the mid of 2020 and 2021, the share generates about 200% return on investment.

Indian Overseas Bank Ltd. – Public Bank Companies’ Shares to Buy

Indian Overseas Bank Ltd. is another popular penny stock to rule the heart of many beginner-level investors.

Indian Overseas Bank Ltd. - Public Bank Companies' Shares to Buy

At present, it could be one of the top public bank companies’ shares to buy for investors willing to invest in a company that costs below or around 20/per share.

As of March 12, 2022, IOB may cost you around Rs. 18 per share. If we talk about the background, IOB was founded in 1937 by M. Ct. M. Chidambaram Chettyar.

And it won’t be wrong to address it as one of the oldest banking firms to actively serve the nation.  With over 3,400 domestic branches and 6 foreign branches, the bank wows investors.

However, it’s worth noting that the bank is operated by the Government of India now. But apart from that, it is one of the highly profitable assets from an investment perspective.

Yes Bank Ltd. – Bank Companies in India

Yes Bank Ltd. is one of the popular bank companies in India. Founded in 2004, the public sector bank is still in an early growth stage.

Yes Bank Ltd. - Bank Companies in India

The bank is renowned for its wide range of products offerings. Even though the last few years weren’t so good for the bank, it still emerges as a great investable asset for investors.

Particularly because the bank receives support from the Reserve Bank of India, HDFC Bank, State Bank of India, Axis Bank, ICICI Bank, and other banks after it faces the biggest-ever lifetime loss due to excessive bad loans.

For now, Yes Bank Ltd is a highly popular penny stock you may set the higher expectation from. After all, multiple banks back this statement.

Union Bank Of India Ltd. – Private Bank Stocks in India

Union Bank of India is unarguably another great name to achieve a notable spot in the list of top private bank stocks in India. It also referred to as a UBI, is under the ownership of the Indian Government.

Union Bank Of India Ltd. - Private Bank Stocks in India

Set up in 1919, the bank became one of the oldest financial institutions in the nation.

However, the bank became an amalgamated banking firm after Corporation Bank and Andhra Bank merged together. Similarly, that makes the bank renowned as the fifth largest PSU bank.

With a broad network of 95,00+ branches and 77,000+ employees, UBI proves that it will stay the strongest player in the stock market.

Thus, you can confidently think about investment in the Union Bank of India. However, it could be an optional choice as well because UBI also falls into the Penny Stocks category.

How To Find Bank Stocks For Trading?

Banking is an industry above an all-important industry. It is the only industry that will last forever, as it is unlike other companies or brands that change as new trends kick in.

Rather than changing, the sector will keep evolving. But from an investor’s perspective, not all banking shares are good.

Mainly if you plan to trade in bank stocks, it can be a bit tricky to reach a wise choice because most banks follow a stable growth pattern with no volatility in prices.

So try figuring out the banking share before price jumping straight to trade execution. A highly volatile share price carries the vast potential to meet your trading goals.

However, another thing worth noting is the banking company’s overall financial profile. It should be rising gradually, must not be a shaky or sinking year on year.

How To Invest In Bank Sectors Stocks?

The answer can be straightforward “by the broker,” but it isn’t exactly. In most instances, it can be a bit difficult to invest in banking stocks; even if you invest, they may not generate enough to fulfill your desire.

Such as stocks that are a bit pricey, above Rs. 1000 or Rs 5000 price level may not generate enough return until you buy for a big quantity.

Similarly, if you are buying a stock at its peak or lifetime high, you will make nothing but disappointment. Always wait for the stock price to reach the bottom level so that you don’t wait for too long to fetch small or big returns.

Top Bank Companies in India – Conclusion

You are now aware of top bank companies in India. Above, we catch a glimpse of the best banking firm doing a fabulous job in the financial market.

All these publicly-listed shares have been appreciated by investors. And the reasons have also been illustrated above. So what are you up to? The list of top banking shares is available on your screen.

So jump straight to the best alternative and wrap it in your portfolio.

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