Top Banking Stocks in India

Bank stocks are a major segment of India’s equity market, tracked by the Nifty Bank index, a sector benchmark comprising the most liquid and large-capitalisation banking stocks listed on the National Stock Exchange of India. As of early 2026, the Nifty Bank index’s total free-float market capitalisation was over ₹51 lakh cr, reflecting the size and market impact of banking equities. The broader Nifty 50 index assigns significant weight to financial services, including banking, with financials accounting for around 37% of the index’s sectoral allocation, underscoring the influence of bank stocks on overall market movements.

Best Banking Stocks

Tuesday, 17 February, 2026

symbol Company ticker slug Sector Market Price 52W High 52W Low Market Cap (Cr.) PE Ratio Industry PE PB Ratio Div. Yield (%) ROE (%) 1YReturns 3YReturns 5YReturns Market Cap Label Industry Group Industry Sub Industry percentageChange
BHARI Bharti Hexacom Ltd BHARTIHEXA /stocks/bharti-hexacom-BHARI Telecom Services 1,679.70 2,052.90 1,234.00 83,985.00 56.23 111.06 14.16 0.60 28.26 26.39 106.53 106.53 Midcap Telecommunication Services Wireless Telecommunication Services Wireless Telecommunication Services 0.02
BMBK Bank of Maharashtra Ltd MAHABANK /stocks/bank-of-maharashtra-BMBK Public Banks 65.52 67.74 42.00 50,395.07 9.09 18.51 1.76 2.29 22.82 34.54 141.77 243.94 Midcap Banks Banks Diversified Banks 2.61
BOI Bank of India Ltd BANKINDIA /stocks/bank-of-india-BOI Public Banks 165.61 170.50 92.66 75,396.73 7.90 18.51 0.93 2.45 12.59 67.23 113.28 134.58 Midcap Banks Banks Diversified Banks 2.52
CAPI Capital Small Finance Bank Ltd CAPITALSFB /stocks/capital-small-finance-bank-CAPI Private Banks 266.60 330.65 250.00 1,210.86 9.20 18.51 0.90 1.49 10.38 -8.23 -38.71 -38.71 Smallcap Banks Banks Regional Banks -0.64
CBI Central Bank of India Ltd CENTRALBK /stocks/central-bank-of-india-CBI Public Banks 37.25 48.20 32.75 33,716.47 8.57 18.51 0.91 0.51 11.33 -20.96 37.96 123.05 Midcap Banks Banks Diversified Banks 1.77
CNBK Canara Bank Ltd CANBK /stocks/canara-bank-CNBK Public Banks 145.84 160.79 78.60 132,286.38 7.54 18.51 1.24 2.74 17.56 71.39 147.23 348.46 Largecap Banks Banks Diversified Banks 2.22
CSBB CSB Bank Ltd CSBBANK /stocks/csb-bank-CSBB Private Banks 375.50 574.40 272.75 6,361.24 10.71 18.51 1.41 0.00 14.31 33.46 56.00 71.70 Smallcap Banks Banks Regional Banks 5.07
CTBK City Union Bank Ltd CUB /stocks/city-union-bank-CTBK Private Banks 275.90 324.10 142.91 20,500.67 18.25 18.51 2.17 0.72 12.58 71.53 95.40 66.46 Smallcap Banks Banks Diversified Banks 0.18
DCBA DCB Bank Ltd DCBBANK /stocks/dcb-bank-DCBA Private Banks 192.82 203.70 101.41 6,204.63 10.08 18.51 1.09 0.68 11.44 78.21 68.33 68.33 Smallcap Banks Banks Diversified Banks 2.17
DNBK Dhanlaxmi Bank Ltd DHANBANK /stocks/dhanlaxmi-bank-DNBK Private Banks 23.95 33.50 22.06 945.30 14.19 18.51 0.68 0.00 5.50 3.32 80.48 119.32 Smallcap Banks Banks Regional Banks 0.33
EQU Equitas Small Finance Bank Ltd EQUITASBNK /stocks/equitas-small-finance-bank-EQU Private Banks 68.48 73.40 50.00 7,813.49 53.13 18.51 1.29 1.46 2.44 11.49 16.46 46.95 Smallcap Banks Banks Diversified Banks 1.34
ESAF ESAF Small Finance Bank Limited ESAFSFB /stocks/esaf-small-finance-bank-ESAF Private Banks 27.99 36.20 24.31 1,443.23 -2.77 18.51 0.74 0.00 -23.48 -5.60 -59.46 -59.46 Smallcap Banks Banks Diversified Banks 1.43
FED Federal Bank Ltd FEDERALBNK /stocks/federal-bank-FED Private Banks 289.00 298.25 172.66 71,181.78 17.12 18.51 2.01 0.41 12.53 59.19 121.88 238.41 Midcap Banks Banks Diversified Banks -0.05
FINOP Fino Payments Bank Ltd FINOPB /stocks/fino-payments-bank-FINOP Private Banks 214.83 339.00 200.00 1,787.78 19.32 18.51 2.39 0.00 13.31 -7.66 -6.76 -60.50 Smallcap Banks Banks Diversified Banks 4.58
HDBK HDFC Bank Ltd HDFCBANK /stocks/hdfc-bank-HDBK Private Banks 925.80 1,020.50 830.55 1,424,622.47 20.12 18.51 2.65 1.18 14.05 7.82 11.26 13.83 Largecap Banks Banks Diversified Banks -0.03
ICBK ICICI Bank Ltd ICICIBANK /stocks/icici-bank-ICBK Private Banks 1,411.60 1,500.00 1,200.10 1,010,143.29 19.80 18.51 3.07 0.78 17.04 12.82 62.36 114.41 Largecap Banks Banks Diversified Banks -0.39
IDBI IDBI Bank Ltd IDBI /stocks/idbi-bank-IDBI Private Banks 111.88 118.38 66.50 120,297.88 15.77 18.51 1.95 1.88 13.50 55.17 128.79 287.80 Largecap Banks Banks Diversified Banks 1.50
IDFB IDFC First Bank Ltd IDFCFIRSTB /stocks/idfc-first-bank-IDFB Private Banks 82.91 87.00 52.46 71,283.90 47.83 18.51 1.87 0.26 4.23 34.81 45.46 53.96 Midcap Banks Banks Diversified Banks 0.58
INBA Indian Bank INDIANB /stocks/indian-bank-INBA Public Banks 888.90 923.00 478.00 119,731.63 10.63 18.51 1.67 1.83 17.09 71.75 207.84 584.56 Largecap Banks Banks Diversified Banks 3.57
IOBK Indian Overseas Bank IOB /stocks/indian-overseas-bank-IOBK Public Banks 35.08 47.95 33.50 67,552.12 19.89 18.51 2.10 0.00 11.36 -23.95 34.66 167.79 Midcap Banks Banks Diversified Banks 2.34
JSF Jana Small Finance Bank Ltd JSFB /stocks/jana-small-finance-bank-JSF Private Banks 385.80 552.50 338.90 4,168.64 8.31 18.51 1.01 0.00 13.03 -6.95 4.79 4.79 Smallcap Banks Banks Diversified Banks 2.77
KARU Karur Vysya Bank Ltd KARURVYSYA /stocks/karur-vysya-bank-KARU Private Banks 316.35 327.90 154.62 30,579.85 15.75 18.51 2.56 0.68 17.68 73.42 266.78 592.08 Smallcap Banks Banks Diversified Banks 2.61
KBNK Karnataka Bank Ltd KTKBANK /stocks/karnataka-bank-KBNK Private Banks 205.13 220.40 162.20 7,757.47 6.09 18.51 0.64 2.44 11.10 17.87 41.71 213.65 Smallcap Banks Banks Diversified Banks 1.14
KTKM Kotak Mahindra Bank Ltd KOTAKBANK /stocks/kotak-mahindra-bank-KTKM Private Banks 425.60 460.38 378.78 423,321.21 19.13 18.51 2.69 0.12 15.39 9.39 19.02 5.36 Largecap Banks Banks Diversified Banks -0.26
NTP Ntpc Green Energy Ltd NTPCGREEN /stocks/ntpc-green-energy-NTP Renewable Energy 89.53 117.64 84.05 75,440.93 158.66 22.35 4.07 0.00 3.84 -14.60 -26.40 -26.40 Midcap Utilities Independent Power and Renewable Electricity Producers Renewable Electricity 0.32

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the above table is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.

Selection criteria:
  • Sub-sector: PSU and Private Banks
  • Market Cap: Sorted from Highest to Lowest

The House of HDFC smallcase includes the stocks of companies that are subsidiaries of HDFC Group, one of India’s largest financial conglomerates. It was created by Windmill Capital.

House of HDFC Tracker smallcase by Windmill Capital

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The Banking and Finance smallcase is a basket of handpicked stocks of banks and financial institutions listed in India. It was created by Angel One.

AngelOne Banking & Finance Tracker smallcase by Angel One

Disclosures for Bank & Finance smallcase

The Banking Tracker smallcase consists of companies that track the performance of the banking industry in India. It was created by Windmill Capital.

Banking Tracker smallcase by Windmill Capital

Disclosures for Banking Tracker smallcase

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What are Banking Stocks?

Bank sector stocks are shares of companies that provide financial services, such as commercial banks, investment banks, and insurance companies.

About the Top Banking Stocks

  1. HDFC Bank Ltd: HDFC Bank is one of India’s largest private sector banks and consistently ranks among the well-reputed Indian bank shares.
  2. State Bank of India: State Bank of India is India’s largest public sector bank, providing banking, financial services, and loans to millions of customers.
  3. ICICI Bank Ltd: ICICI Bank is recognised for its innovative banking solutions and diverse financial offerings, catering to retail and corporate clients.
  4. Axis Bank Ltd: Axis Bank is one of India’s top private banking shares. It is renowned for its innovative financial solutions and customer-focused approach.
  5. Kotak Mahindra Bank Ltd: Kotak Mahindra Bank is one of the leading private-sector banks in India. It was founded in 2003. The bank offers a wide range of banking products and services for retail and corporate customers.

Union Budget 2026-27 Updates Affecting the Financial Sector

In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman focused on strengthening the financial system through tax clarity, deeper markets, and simpler regulations. The Budget emphasised long-term capital formation and overall financial stability.

Below are the key highlights for the financial sector.

  • Fiscal consolidation supports macro stability: The Budget pegs the fiscal deficit at 4.3% of GDP for FY27, compared with 4.4% in FY26. This reduction supports confidence in India’s sovereign balance sheet and borrowing programme.
  • Corporate bond reforms support market depth: The Budget introduces a market-making framework along with derivatives on bond indices. This step aims to improve liquidity and increase participation in the corporate bond market.
  • STT hike affects derivatives trading costs: The Budget raises STT on futures to 0.05% from 0.02% and increases options STT to 0.15%. These changes directly increase trading costs and influence volumes in the F&O segment.
  • Buyback taxation changes equity capital strategies: Buybacks will now attract capital gains tax for all shareholders. Promoters face a higher effective tax burden, which changes how companies plan capital return strategies.
  • Measures support foreign capital participation: MAT exemption for non-residents under presumptive taxation and clearer safe-harbour rules improve India’s attractiveness for global capital.

How to Invest in Banking Stocks?

Here is how one can invest in the top banking stocks for beginners or seasoned investors in India:

  1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
  2. Conduct thorough research into banking stocks in India that is of interest to you. Investors can use tools like the Tickertape Stock Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research the top bank stock investments.
  3. Place a ‘Buy’ Order on the banking stocks India of your choosing.

What is Bank NIFTY?

Bank NIFTY is a stock market index that tracks the performance of the top bank stocks India. It is also known as the Bank index and is a subset of the larger NIFTY 50 index. The Bank NIFTY index or Fininifty (also called Nifty Financial Services) can provide investors with a benchmark for measuring the performance of the banking sector in India. Institutional and retail investors widely follow it. It can be used as a proxy for the overall health of the Indian economy.

How to Identify Banking Sector Stocks?

  • Types of Banking Stocks: Investors find banking stocks across different categories. Public sector banks operate under government ownership, while private sector banks function as privately-owned entities.
  • Key Financial Metrics: Banking stocks come with unique financial parameters. Net Interest Margin (NIM) shows the difference between interest earned and interest paid. Return on Assets (ROA) and Return on Equity (ROE) measure how efficiently banks use their assets and equity.
  • Asset Quality Indicators: Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) reveal the proportion of loans that borrowers haven’t repaid. The Provision Coverage Ratio (PCR) shows how much of the bad loans the bank has provided for.
  • Growth Parameters: Credit growth and deposit growth rates show how fast a bank expands its lending and deposit base. The CASA (Current Account Savings Account) ratio indicates the proportion of low-cost deposits, which affects profitability.

Benefits of Investing in Banking Stocks

  • Long-Term Growth Potential: Banks benefit from economic growth by expanding loan portfolios and introducing new financial services, boosting profitability. The low price banking stocks list includes options with significant growth potential for long-term investors.
  • Stability During Economic Downturns: Bank stocks with strong growth potential are considered defensive investments, offering stability despite short-term market volatility. The banking stocks list often withstands downturns better than other sectors, providing opportunities even during uncertain times.
  • Interest Rate Sensitivity: Banks benefit from rising interest rates, which can lead to higher profitability and potential growth for investors.

Risks Faced by the Banking Sector in India

  • Regulatory Changes: Complex regulations, like AML rules and data protection laws, can affect bank profitability. Banks are automating compliance to stay efficient.
  • Cybersecurity Risks: Digitalisation increases the risk of cyberattacks. Public and private sector bank stocks India that invest in cybersecurity and partner with firms to secure customer data, ensuring their place in the best stock in banking sector.
  • Growing Competition: Fintech and digital banks have intensified competition. Traditional banks are adopting technology and new business models to remain competitive, maintaining relevance in the bank shares list.
  • Economic Uncertainty: Political and economic instability can reduce demand for financial services. Private and public sector bank stocks India are diversifying portfolios and using technology to manage risks, ensuring stability in the best stock in banking sector.
  • Fintech Disruption: Fintech offers faster, cheaper services, challenging traditional banks. In response, banks are increasing technology investments and partnering with fintech firms to remain competitive and retain their position in the bank stock list.

Factors to Consider While Investing in Banking Stocks

  • Regulatory Risks: Changes in regulations can impact the profitability of even high dividend bank stocks India. Investors should consider regulatory compliance when selecting from the best bank shares.
  • Credit Risk: Loan quality impacts profitability. Assess the best bank stocks in India for non-performing loans and strong underwriting practices.
  • Interest Rate Risk: Interest rate changes affect banks’ revenues from loans and deposits. Consider a bank’s sensitivity to these changes when investing in the best banking share.
  • Technology and Cybersecurity: Evaluate a bank’s ability to adopt new technologies and manage cybersecurity risks. This can impact the banking share price today and long-term profitability.

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To Wrap It Up…

One could benefit from the banking sector’s long-term growth and steady dividend income. However, it’s important to consider the risks and factors specific to the banking stocks before investing. As always, please do your own research and/or consult a financial advisor before investing in the best banking share in India.

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Frequently Asked Questions on Banking Stocks in India

1. What are bank sector stocks?

Bank sector stocks represent shares of companies offering banking services like deposits, loans, credit, and wealth management. These include public sector banks, private banks, foreign banks, and small finance banks.

2. What are the current non-performing asset (NPA) levels?

As of early 2026, Indian banks have reached a multi-decade low in Non-Performing Asset (NPA) levels, with the Gross NPA ratio dropping to approximately 2.1%–2.3% by late 2025/early 2026, down from over 11% in 2018. Net NPAs have declined to around 0.5%, indicating a significantly healthier banking sector, with public sector banks seeing substantial improvements.

3. How can I invest in the best banking shares in India?

You can invest in the best banking shares by following these steps:
(a) Research the different banking Indian banking sector stocks that are available.
(b) Open a demat account. You can open one with smallcase!
© Invest in the best bank for investment in India.

4. Is it a good time to explore in banking stocks in India?

The consistent growth of the Indian economy has led to an increase in demand for banking services. However, it’s important to do your own research and/or consult a financial advisor before investing in the best banking stocks in India.

5. Why banking stocks are rising?

Public sector banks have reported a higher net profit in the financial year 2024-25, and this is due to the one-time provision allocated to pensions by several banks. This pension provision, being lower than anticipated, gave way to a rise in their banking share prices.

6. Can I hold Bank Nifty for the long term?

It can experience stability, growth potential, and potential for high returns by investing in Bank Nifty. However, the maximum duration for holding a derivative contract is restricted to three expiry months. Investors should comprehend the growth potential and challenges confronted by these banks before investing.

7. Which bank stock is best?

Here are the top banking sector stocks sorted according to their market capitalisation, as of 2nd February 2026:

  • HDFC Bank Ltd
  • State Bank of India
  • ICICI Bank Ltd
  • Axis Bank Ltd
  • Kotak Mahindra Bank Ltd

    Note: The data on the bank stocks India listed above are listed for educational purposes and are not meant to be recommenatory. The data on this list was taken from Tickertape Stock Screener.

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