Investors are always searching for ways to diversify their portfolios and achieve attractive returns on investment. And when it comes to finding a potentially rewarding sector, the banking industry seems to fit the bill.
Thanks to the rapid growth of fintech and financial inclusion, the Indian banking sector has emerged as one of the most profitable industries to invest in. Apart from being highly profitable, banks also have a significant impact on the economy, making them a compelling choice for investors.
If you are also looking for investment in shares of banking companies, here are the top 5 picks for 2023.
1. HDFC Bank
The HDFC Bank is amongst the leading private sector banks in the country. With the incorporation of digitized approaches, the bank has high standards for customer satisfaction. Investment in HDFC bank stock can be a great choice pertaining to its robust fundamentals and consistent dividend payouts. At present, HDFC Bank share price is trading around Rs 1600.
2. Axis Bank
This private sector bank ranks the third largest in India, with over 16,900 ATMS and 4000+ branches. Axis Bank offers its users a plethora of financial services. Over the years, the bank has showcased strong growth. At present, Axis Bank share price is trading around Rs 850.
3. ICICI Bank
With the portrayal of a strong corporate, investment, and retail presence, ICICI Bank is one of the best stocks to invest in, in the banking sector in India. Moreover, investors lean towards investment in shares of ICICI Bank due to its attractive valuation and high growth prospects. At present, ICICI Bank share price is around Rs 870.
4. Canara Bank
Canara Bank stock gave a 3-year return of 200%+, making it one of the best banking stocks to create long-term wealth. Over time, the bank has shown a plausible amount of growth, and it continues to revolutionize financial services. The share price of this bank is around Rs. 280 at present.
5. Bandhan Bank
Bandhan Bank is a Kolkata-based private sector bank that was founded in 2001 as a microfinance company. In 2015, it received a banking license from the Reserve Bank of India and became a full-fledged commercial bank.
This Kolkata-based private-sector bank holds a prominent position in western and southern regions. Bandhan Bank is trading at around Rs 190 at present.
Note that before investing in any stocks, it is important to exercise caution and consider certain factors such as financial performance, market share, and risk management. By doing so, you can minimize risks and make informed decisions that align with their investment goals.
Conclusion
Investing in the banking sector can offer a promising opportunity to start your investment journey or gain exposure to the market. With the Indian fintech market projected to reach Rs. 6.2 trillion by 2025, the banking industry is poised for further growth, making it an attractive sector to consider. The top banking stocks mentioned above have demonstrated attractive returns on investment and a positive outlook, which could be worth considering to diversify your portfolio.