Banking stocks: The performance of the banking sector is not only an indicator of the state of the economy, but it also reflects the sentiments of foreign portfolio investors (FPIs). When FPIs become sellers, it has a direct impact on the banking sector. On the contrary, if their stance is bullish, banking stocks move ahead with momentum.
Recently, the Economic Times has published a report quoting Stock Reports Plus which lists banking stocks that analysts say can give returns of up to 28-39% in the next 12 months. This report has selected those stocks which can have a potential-jump of up to 65%. In the report, analysts evaluated more than 4,000 listed stocks and focused on earnings, fundamentals, relative valuation, risk and price momentum.
Here is a list of some of the top bank stocks that have the potential to potentially deliver 28-39% returns over the next year
Jammu & Kashmir Bank
- Average Score: 6
- Recommendation: Strong Buy
- Expert Count: 1
- Upside Potential: 39.8%
- Institutional Holding: 10.4%
- Market Cap Type: Mid
- Market Cap: ₹12,207 crore
Suryoday Small Finance Bank
- Average Score: 4
- Recommendation: Strong Buy
- Expert Count: 1
- Upside Potential: 39.5%
- Institutional Holding: 23.6%
- Market Cap Type: Small
- Market Cap: ₹2,124 crore
Utkarsh Small Finance Bank
- Average Score: 7
- Recommendation: Strong Buy
- Expert Count: 2
- Upside Potential: 38.6%
- Institutional Holding: 15.3%
- Market cap type: Mid
- Market cap: ₹5,361 crore
Ujjivan Small Finance Bank
- Average score: 9
- Recommendation: Buy
- Expert count: 14
- Upside potential: 36.4%
- Institutional holdings: 11.3%
- Market cap type: Mid
- Market cap: ₹8,394 crore
South Indian Bank
- Average score: 8
- Recommendation: Buy
- Expert count: 6
- Upside potential: 35.6%
- Institutional holdings: 12.3%
- Market cap type: Mid
- Market cap: ₹6,674 crore
CSB Bank
- Average score: 9
- Recommendation: Buy
- Expert count: 3
- Upside potential: 35.2%
- Institutional holdings: 18.3%
- Market cap type: Mid
- Market cap: ₹5,580 crore
Union Bank of India
- Average Score: 6
- Recommendation: Buy
- Expert Count: 11
- Upside Potential: 29.8%
- Institutional Holding: 12.2%
- Market Cap Type: Large
- Market Cap: ₹95,878 crore
DCB Bank
- Average Score: 8
- Recommendation: Buy
- Expert Count: 19
- Upside Potential: 29.5%
- Institutional Holding: 42.7%
- Market Cap Type: Small
- Market Cap: ₹3,845 crore
IndusInd Bank
- Average Score: 6
- Recommendation: Buy
- Expert Count: 42
- Upside Potential: 28.1%
- Institutional Holding: 36.7%
- Market Cap Type: Large
Given the prospects of these stocks, investors can watch them over the next 12 months. These stocks are expected to rise during this period, providing investors with the potential for good returns.
Disclaimer: This information is provided for informational purposes only. Always seek expert advice before investing. 1tak.com does not advise anyone to invest money because investment in the market is subject to risks.