Help? Login Open Demat Account
Home
English
  • Products
    • Products
      • Stocks Trading
      • Derivatives Trading
      • Commodity Trading
      • Currencies Trading
      • Mutual Funds
      • Loans
      • Wealth New
      • US Stocks
      • Demat Account
      • YoungVestor Account
    • Technology
      • 5paisa Trading App
      • 5paisa Invest App
      • 5paisa School App
      • Trade Station V2
      • Trade Station Web
      • Developer APIs
      • Trading Partners
  • Stocks
    • Share Market Today
      • Hot Stocks
      • Penny Stocks
      • Top Gainers
      • Top Losers
      • Global Indices
      • 52 Week High
      • 52 Week Low
      • Large Cap Stocks
      • Mid Cap Stocks
      • Small Cap Stocks
    • Indian Indices
      • NSE
      • Nifty 50
      • Nifty 100
      • Nifty Next 50
      • Nifty Bank
      • BSE
      • S&P BSE 100
      • S&P BSE Midcap
      • S&P BSE Smallcap
      • Sensex Today
    • Top Companies
      • Tata Motors
      • ITC
      • Tata Steel
      • IRCTC
      • Yes Bank
      • TCS
      • SBI
      • Infosys
      • Adani Power
      • Reliance
      • Tata Power
      • Trident
  • Mutual Funds
    • Mutual Funds
      • Large Cap
      • Midcap
      • Smallcap
      • ELSS Tax
      • Flexicap
      • Aggressive Allocation
      • Conservative Allocation
      • Equity Savings
      • Multi Asset Allocation
      • Liquid
      • Corporate Bond
      • Low duration
      • Banking & PSU
      • Short Duration
    • Top AMCs
      • SBI
      • UTI
      • Aditya Birla
      • AXIS
      • ICICI Prudential
      • Tata
      • HDFC
      • Nippon india
      • DSP
  • IPO
    • IPO
      • Aether Industries IPO
      • eMudhra IPO
      • Upcoming IPO
      • Closed IPO
      • Recently Listed IPO
      • IPO Allotment Status
      • Upcoming IPOs in 2022
      • Upcoming IPOs in May 2022
  • Resources
    • Resources
      • Blog
      • Quarterly Results
      • FinSchool
      • Market Guide
      • News
      • Gold Rate Today
Help? Login Open Demat Account
English
✕
  • Products
    • Products
    • Stocks Trading
    • Derivatives Trading
    • Commodity Trading
    • Currencies Trading
    • Mutual Funds
    • Loans
    • Wealth New
    • US Stocks
    • Demat Account
    • YoungVestor Account
    • Technology
    • 5paisa Trading App
    • 5paisa Invest App
    • 5paisa School App
    • Trade Station V2
    • Trade Station Web
    • Developer APIs
    • Trading Partners
  • Stocks
    • Share Market Today
    • Hot Stocks
    • Penny Stocks
    • Top Gainers
    • Top Losers
    • Global Indices
    • 52 Week High
    • 52 Week Low
    • Large Cap Stocks
    • Mid Cap Stocks
    • Small Cap Stocks
    • Indian Indices
    • NSE
    • Nifty 50
    • Nifty 100
    • Nifty Next 50
    • Nifty Bank
    • BSE
    • S&P BSE 100
    • S&P BSE Midcap
    • S&P BSE Smallcap
    • Sensex Today
    • Top Companies
    • Tata Motors
    • ITC
    • Tata Steel
    • IRCTC
    • Yes Bank
    • TCS
    • SBI
    • Infosys
    • Adani Power
    • Reliance
    • Tata Power
    • Trident
  • Mutual Funds
    • Mutual Funds
    • Large Cap
    • Midcap
    • Smallcap
    • ELSS Tax
    • Flexicap
    • Aggressive Allocation
    • Conservative Allocation
    • Equity Savings
    • Multi Asset Allocation
    • Liquid
    • Corporate Bond
    • Low duration
    • Banking & PSU
    • Short Duration
    • Top AMCs
    • SBI
    • UTI
    • Aditya Birla
    • AXIS
    • ICICI Prudential
    • Tata
    • HDFC
    • Nippon india
    • DSP
  • IPO
    • IPO
    • Aether Industries IPO
    • eMudhra IPO
    • Upcoming IPO
    • Closed IPO
    • Recently Listed IPO
    • IPO Allotment Status
    • Upcoming IPOs in 2022
    • Upcoming IPOs in May 2022
  • Resources
    • Resources
    • Blog
    • Quarterly Results
    • FinSchool
    • Market Guide
    • News
    • Gold Rate Today

Banks

  • AU Small Finance Bank Ltd
  • Axis Bank Ltd
  • Bandhan Bank Ltd
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • City Union Bank Ltd
  • CSB Bank Ltd
  • DCB Bank Ltd
  • Dhanlaxmi Bank Ltd
  • Equitas Small Finance Bank Ltd
  • Federal Bank Ltd
  • Fino Payments Bank Ltd
  • HDFC Bank Ltd
  • Indian Overseas Bank
  • ICICI Bank Ltd
  • IDBI Bank Ltd
  • IDFC First Bank Ltd
  • Indian Bank
  • IndusInd Bank Ltd
  • Jammu and Kashmir Bank Ltd
  • Karnataka Bank Ltd
  • Karur Vysya Bank Ltd
  • Kotak Mahindra Bank Ltd
  • Punjab & Sind Bank
  • Punjab National Bank
  • RBL Bank Ltd
  • South Indian Bank Ltd
  • State Bank of India
  • Suryoday Small Finance Bank Ltd
  • UCO Bank
  • Ujjivan Small Finance Bank Ltd
  • Union Bank of India
  • Yes Bank Ltd

What Are Bank Stocks?

Recently, banking sector share prices have seen huge fluctuations, mainly due to panic selling during the COVID-19 crisis, global crude oil shortage, and the ongoing Russia-Ukraine war. However, despite the market issues since 2020, bank stocks are a promising investment option, and experts suggest that these stocks will give high returns in the long term.

The Indian financial services and banking industry will see a major boost in the coming years. A huge chunk of the population that did not have a bank account or owned any financial product is now being introduced to banking. With rising digitisation and awareness, banking sector stocks can provide promising returns to investors, even among the poor and rural population. Financial analysts and rating agencies too indicate an opportunity to make profits in the coming days. 

If you are looking to invest in the banking sector, here is a quick analysis of the financial industry in India and the best bank sector stocks that you can consider. Bank stocks are usually divided into two key categories - public sector banks (with 50% or more holding with state or central government) and private sector banks (majority stakes owned by private corporations or individuals). So let us understand the overall sector and the top banking sector share list in the public and private sectors.

Future of Bank Sector Stocks

The Indian banking sector covers a vast population, which 22 private sector banks serving, 12 public sector banks, 44 foreign institutes, 43 regional rural banks, 1484 urban cooperative banks, and 96000 rural cooperative banks. This vast number of financial institutions in the country cater to multiple groups, the urban class, small and medium-size industries, large institutions, the agricultural sector, and the rural population. In terms of total assets, public sector banks stood at INR 107.83 lakh crore (US$ 1.52 trillion) in FY20. Meanwhile, total assets of the overall banking sector (including public, private sector, and foreign banks) increased to US$ 2.52 trillion in FY20.

Investors should understand the features and financial products when investing in any bank stocks. With rising income, enhanced banking facilities even in rural areas, and growing digitisation, the banking sector is poised for growth in the coming years. As of August 2021, the total number of ATMs in India reached 213,570. Meanwhile, cashless transactions are also on the rise, with the Unified Payments Interface (UPI) recording 3.65 billion transactions worth INR 6.54 trillion (US$ 87.11 billion) as of September 2021.

Best Bank Sector Stocks for Long Term

Whether it is a public or private bank stock, investors need to properly analyse the offered products and the bank's overall financial health. Since banking is the backbone of India's sector, it is crucial to consider both public and private sector banks, which cater to unique segments and serve different economic purposes.

For the top banking sector share list in the private sector, the leading public sector bank shares have a high rating among analysts and have a strong market cap. Even in the private sector, the top-tier banks cater to a largely urban population, while the bottom-tier banks cater to rural and small-finance products. 

Is It Worth Investing in Bank Stocks?

As can be seen, by the analysis of the banking sector and the top banking sector share list, Indian financial services are already in their growth stage, and the trends are looking promising for the future. The sector, both public and private sector banking, is evolving rapidly, thanks to digitisation and raising awareness about financial products. 

Investors need to look at historical data and compare important financial details like total assets, NPA (Non-Performing Assets), and liquidity when investing in bank stock. It can also be tricky to understand the banking sector's share price just by the P/E ratio, so investors are recommended to do a detailed analysis before making any financial decision.

The banking sector stock list is also indexed under Bank Nifty, which will allow investors to spread their investments across multiple banks. This minimises the risk involved and provides investors and market intermediaries with a benchmark that captures the capital market performance of the Indian banking sector. So when adding a banking sector stock, think of all the available investment options and go for the ideal choice for your risk appetite!

Open Demat Account
Start Investing in 5 mins*
Enter Mobile Number
 
 

Custom Footer Menu

Share Market

Share Market Today

  • Penny Stocks
  • Hot Stocks
  • Top Gainers
  • Top Losers
  • 52 Week High
  • 52 Week Low
  • Large Cap Stocks
  • Mid Cap Stocks
  • Small Cap Stocks

IPO

  • Paradeep Phosphate IPO
  • Ethos IPO
  • eMudra IPO
  • Upcoming IPO
  • Upcoming IPOs in May 2022
  • Upcoming IPOs in 2022
  • Current IPO
  • Closed IPO
  • Recently Listed IPO

Indian Indices

  • NSE
  • BSE
  • Nifty 50
  • Sensex Today
  • Nifty 100
  • Nifty Next 50
  • S&P BSE 100
  • S&P BSE Midcap
  • S&P BSE Smallcap
  • Nifty Midcap 100
  • Nifty Bank

Top Companies

  • Tata Motors Share Price
  • IRCTC Share Price
  • SBI Share Price
  • Tata Power Share Price
  • ITC Share Price
  • Yes Bank Share Price
  • Infosys Share Price
  • Reliance Share Price
  • Tata Steel Share Price
  • TCS Share Price
  • Idea Share Price

Top Sectors

  • Power
  • IT
  • Coal
  • FMCG
  • Automobile
  • Bank
  • Chemical
  • Metal
  • Cement
  • Defence

Share Market Holidays

  • NSE/BSE Holidays 2022
  • MCX Holidays 2022
  • Share Market Timing
  • Gold Rate Today

Stocks Directory

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All 0-9
Stock Market Guide

Demat Account

  • What is a Demat Account?
  • How To Open a Demat Account?
  • Demat Account Charges
  • Benefits of a Demat Account
  • Documents Required for Demat Account

Stock/Share Market

  • How to Invest in Share Market?
  • What is share market?
  • What is share?
  • What are Penny Stocks?
  • How to buy shares?

Commodities

  • What is Commodity Trading?
  • Tips for Commodity Trading
  • How Can You Trade Commodity Online?
  • How Commodity Market Works in India?
  • Types of Commodity Market

Derivatives

  • What is Futures Trading?
  • What is Options Trading?
  • Difference Between Options and Futures
  • Derivatives Trading Strategies
  • What is derivative trading?
  • What are Derivatives Trading Strategies?

IPO

  • How to Apply for an IPO ?
  • What is the eligibility to apply for an IPO?
  • Why Should You Invest in an IPO?
  • IPO (Initial Public Offering): All You Need to Know About IPO
  • What is the Process of IPO?

Online Trading

  • Online Trading: All You Need To Know About
  • How To Start Online Trading In India
  • Online Trading for Beginners
  • Online Stock Trading Tips
  • Advantages Of Online Trading
Mutual Funds

Mutual Fund AMCs

  • SBI Mutual Fund
  • Axis Mutual Fund
  • HDFC Mutual Fund
  • UTI Mutual Fund
  • ICICI Prudential Mutual Fund
  • Nippon India Mutual Fund
  • Aditya Birla Mutual Fund
  • Tata Mutual Fund
  • DSP Mutual Fund
  • Kotak Mutual Fund
  • IIFL Mutual Fund
  • Canara Robeco Mutual Fund
  • Franklin Templeton Mutual Fund
  • IDFC Mutual Fund
  • L&T Mutual Fund
  • Mirae Asset Mutual Fund
  • Sundaram Mutual Fund
  • Motilal Oswal Mutual Fund
  • Edelweiss Mutual Fund
  • Invesco Mutual Fund

Top Mutual Fund Schemes

  • Axis Bluechip Fund
  • SBI Small Cap Fund
  • ICICI Prudential Technology Fund - Direct Plan - Growth
  • Tata Digital India Fund Direct Plan Growth
  • Mirae Asset Large Cap Fund
  • UTI Flexi Cap Fund
  • Axis Midcap Fund
  • Kotak Emerging Equity Fund
  • Axis Small Cap Fund
  • Mirae Asset Hybrid Equity Fund

Top Mutual Fund Categories

  • Equity
  • Largecap
  • Midcap
  • Smallcap
  • ELSS Tax Saving
  • Multi Cap
  • Hybrid
  • Arbitrage
  • Equity Savings
  • Aggressive
  • Debt
  • Liquid
  • Ultra Short Duration
  • Gilt
  • Long Duration

Calculators

  • Brokerage Calculator
  • Span Margin Calculator
  • Lumpsum Calculator
  • SIP Calculator
  • SWP Calculator
  • STP Calculator
  • EMI Calculator
  • Retirement Calculator

Mutual Fund Guide

  • How to invest in mutual funds?
  • What is mutual fund?
  • What is sip in mutual fund?
  • How mutual funds work?
  • What is xirr in mutual fund?
  • Types of mutual funds
  • Best mutual funds to invest in 2022
  • ETF vs Mutual Fund 
  • Top performing mutual funds
  • Exit load in mutual fund
  • Advantages of mutual funds
More

About

  • About Us
  • 5paisa in Media
  • Investor Relations
  • Careers
  • Partner Program
  • FinSchool
  • Blog
  • News

Technology

  • 5paisa Trading App
  • 5paisa Invest App
  • 5paisa School App
  • Trade Station V2
  • Trade Station Web
  • Developer APIs
  • Algo Trading

Products

  • Stock Trading
  • Derivatives Trading
  • Commodity Trading
  • Currency Trading
  • Mutual Funds
  • US Stocks
  • Loans
  • Health Insurance
  • IPOs
  • Demat Account

Connected Apps

  • Sensibull
  • Smart Investor
  • Swing Trader
  • Smallcase
  • Pricing
  • Pricing
  • Add-on Packs
  • Modes of Payment

Legal

  • Terms of use
  • Privacy Policy
  • Disclaimer
  • Information Memorandum
  • Client Copy - Rights & Obligations
  • Notice to Shareholders
  • Notice to Creditors
  • Research AnalystDisclaimer
  • AML Policy | 
  • Risk Policy |
  • Do's and Don'ts
  • Regulatory Notifications
  • Investor Charter

Contact Us

  • support@5paisa.com
  • FAQs
  • Chat with Us
  • Download Forms
  • Raise a Ticket
  • Announcements
  • Discussion Forums
  • Advisory - KYC Compliance
  • Investor Charter for Stock Broker
  • Investor Charter for Depository Participant
  • Investor Charter for Research Analyst
  • Investor Charter for Investment Adviser

Follow us on

                     

Download now

   

More Information

CIN: L67190MH2007PLC289249 | Stock Broker SEBI Regn.: INZ000010231 | SEBI RA Regn.: INH000004680 | SEBI Depository Regn.: IN DP CDSL: IN-DP-192-2016 | AMFI REGN No.: ARN-104096 | NSE Member id: 14300 | BSE Member id: 6363 | MCX Member ID: 55945 | Investment Adviser Regn No: INA000014252 | Registered Address - IIFL House, Sun Infotech Park, Road no. 16V, Plot no. B-23, MIDC, Thane Industrial Area, Waghle Estate, Thane, Maharashtra - 400604

*Brokerage will be levied flat fee/executed order basis and not on a percentage basis. Flat fee of Rs. 10/order is available with Power Investor & Ultra Trader Packs. Investment in securities market are subject to market risk, read all related documents carefully before investing. Digital account would be opened after all procedure relating to IPV and client due diligence is completed. If sale/ purchase value of share of Rs.10/- or less, a maximum brokerage of 25 paisa per share may be collected. Brokerage will not exceed the SEBI prescribed limit.

Compliance Officer: Ms. Namita Godbole, Email: compliance@5paisa.com, Support desk helpline: 8976689766

Attention Investors

  • 1. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.
  • 2. Message from Exchange(s): Prevent Unauthorised transactions in your account --> Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day. Issued in the interest of investors.
  • 3. Message from Depositories: a) Prevent Unauthorized Transactions in your demat account --> Update your mobile number with your Depository Participant. Receive alerts on your registered mobile for all debit and other important transactions in your demat account directly from NSDL on the same day issued in the interest of investors. b) KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
©2022, 5Paisa Capital Ltd. All Rights Reserved.
We are ISO 27001:2013 Certified.