5 Best Banking Stocks For Investors to buy

Guest Author | April 11, 2018, 3:56 p.m.

The Union Budget 2018’s imposition of Long Term Capital Gains Tax saw a sharp reaction from the market with respect to the banking stocks. Added to the milieu the recent spate of NPAs and banking frauds has seen some banking shares fall sharply. Now is the opportune time for investors to buy certain stocks at lower valuation for higher future growth. One needs to also keep a track of stock market live updates to get a better pulse on these stocks:

1.  State Bank OF India

State Bank OF India share price:

The SBI stocks are expected to outperform as per the Credit Sussie’s Asia pacific bet ideas report. As per Credit Sussie a leading financial services company SBI’s growth of loan and profitability has remained muted over past couple of years due to its mergers with subsidiaries. However going forward SBI’s growth is expected to pick up with retail loan growth already being strong.

2.  ICICI bank

ICICI Bank share price:

ICICI Bank is expected to register significantly elevated earnings growth in the near future. Various analysts forecast positive earnings for the stock over the next three years or so. As per these analysts an annual growth rate of around 25% on average can be expected which illustrates a highly optimistic outlook in the near term.

3.  Canara Bank

Cananra Bank share price :

The shares of Canara Bank have plummeted to Rs 235 from a 52-week high of Rs 463. A fact that makes buying Canara bank shares a wise decision now is that it is among the few PSU banks, which has managed to still declare dividends and results have not been very bad. The bank alo managed to bring down NPAs for the quarter ending Dec 31, 2017; the bank did manage to bring down its NPAs. The bank re-capitalization and the move by the bank to reduce NPAs bode well for the future and thus it is a good stock to buy at current low prices.

4.  Karnataka bank

Karnataka bank share price:

The bank has shown an excellent performance for the quarter ending Dec 31, 2017. The bank showed progress in its asset quality, and also showed good improvement in net non performing assets. The Business performance also saw impressive improvement in comparison to the previous years. The stock is currently available at a dividend yield of nearly 3 per cent also the bank recently surpassed a turnover mark of Rs 1,00,000 crore and future looks bright.

5.  South Indian Bank

South India Bank Share Price: 24.65

Another private sector bank that can be expected to give good returns in the future is the South Indian Bank. At the current value of almost Rs 25 and face value of Rs 1 the stock is also giving decent dividend. The bank has reported a reduction in non performing assets for the quarter ending Dec 31, 2017 from 3.57 to to 3.41. Currently the stock is undervalued at around 10 times 2018-19 earnings. The bank with a good presence in South India is expected to be on the growth trajectory in coming years.

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