List of the Top Bank Penny Stocks in 2025
India’s banking sector remains the backbone of its financial ecosystem. As of FY 2025, scheduled banks, including public, private, regional rural, small finance, and payment banks, total 128 in number, with 124 classified as scheduled commercial banks. This article explores banking sector penny stocks, outlining the potential benefits, risks and factors to consider before investing in them.
Best Bank Penny Stocks
Sunday, 12 October, 2025
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CBI | Central Bank of India Ltd | CENTRALBK | /stocks/central-bank-of-india-CBI | Public Banks | 38.12 | 61.90 | 32.75 | 34,503.94 | 8.77 | 17.31 | 0.93 | 0.50 | 11.33 | -33.18 | 91.56 | 219.00 | Midcap | Banks | Banks | Diversified Banks | 2.14 |
| DNBK | Dhanlaxmi Bank Ltd | DHANBANK | /stocks/dhanlaxmi-bank-DNBK | Private Banks | 26.04 | 36.52 | 22.00 | 1,027.80 | 15.42 | 17.31 | 0.74 | 0.00 | 5.50 | -11.68 | 168.51 | 164.09 | Smallcap | Banks | Banks | Regional Banks | 2.97 |
| ESAF | ESAF Small Finance Bank Limited | ESAFSFB | /stocks/esaf-small-finance-bank-ESAF | Private Banks | 29.13 | 47.65 | 24.31 | 1,501.69 | -2.88 | 17.31 | 0.77 | 0.00 | -23.48 | -36.30 | -57.81 | -57.81 | Smallcap | Banks | Banks | Diversified Banks | 0.34 |
| IOBK | Indian Overseas Bank | IOB | /stocks/indian-overseas-bank-IOBK | Public Banks | 40.23 | 59.94 | 33.50 | 77,469.26 | 22.82 | 17.31 | 2.40 | 0.00 | 11.36 | -26.13 | 129.89 | 334.92 | Midcap | Banks | Banks | Diversified Banks | 2.78 |
| PUNA | Punjab & Sind Bank | PSB | /stocks/punjab-and-sind-bank-PUNA | Public Banks | 30.20 | 56.30 | 25.22 | 21,428.67 | 21.09 | 17.31 | 1.60 | 0.23 | 7.03 | -42.19 | 94.21 | 177.06 | Smallcap | Banks | Banks | Diversified Banks | 2.76 |
| SIBK | South Indian Bank Ltd | SOUTHBANK | /stocks/south-indian-bank-SIBK | Private Banks | 34.26 | 34.44 | 22.27 | 8,964.99 | 6.88 | 17.31 | 0.89 | 1.17 | 13.76 | 45.35 | 276.73 | 444.47 | Smallcap | Banks | Banks | Diversified Banks | 10.13 |
| UCBK | UCO Bank | UCOBANK | /stocks/uco-bank-UCBK | Public Banks | 31.80 | 52.00 | 26.81 | 39,875.80 | 16.16 | 17.31 | 1.29 | 1.23 | 8.50 | -30.11 | 169.49 | 167.23 | Midcap | Banks | Banks | Diversified Banks | 3.41 |
| UJJI | Ujjivan Small Finance Bank Ltd | UJJIVANSFB | /stocks/ujjivan-small-finance-bank-UJJI | Private Banks | 48.78 | 51.87 | 30.88 | 9,450.95 | 13.02 | 17.31 | 1.55 | 0.00 | 12.42 | 20.65 | 93.57 | 51.26 | Smallcap | Banks | Banks | Regional Banks | 1.18 |
| YESB | Yes Bank Ltd | YESBANK | /stocks/yes-bank-YESB | Private Banks | 24.00 | 24.30 | 16.02 | 75,296.51 | 30.78 | 17.31 | 1.57 | 0.00 | 5.44 | 12.04 | 45.90 | 84.62 | Midcap | Banks | Banks | Diversified Banks | 7.05 |
Disclaimer: Please note that the above bank penny stocks 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 on this bank penny stocks list is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
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.
Disclosures for House of HDFC smallcase
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.
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.
Disclosures for Banking Tracker smallcase
What are Bank Penny Stocks?
Bank penny stocks are shares of banking companies that trade at low prices, typically below ₹50. These may include public sector banks, private sector banks, regional rural banks, or small finance banks.
Overview of Top Bank Penny Stocks
- Indian Overseas Bank: Indian Overseas Bank is a public sector bank that offers retail, corporate, and international banking services. It focuses on financial inclusion and runs an extensive branch network across both urban and rural India.
- Yes Bank Ltd: Yes Bank is a private sector bank providing retail, SME, and corporate banking solutions. After restructuring its balance sheet, it is expanding its lending portfolio and strengthening its digital banking presence.
- UCO Bank: UCO Bank is a public sector bank offering retail, corporate, and international banking services. It has a wide branch network and focuses on priority sectors like agriculture, MSMEs, and financial inclusion.
- Central Bank of India Ltd: Central Bank of India is a public sector bank delivering retail and corporate banking services nationwide. It plays a key role in government-backed financial inclusion schemes and serves a diverse customer base.
- Punjab & Sind Bank: Punjab & Sind Bank is a public sector bank with a strong presence in North India. It offers retail and corporate banking solutions and participates in government-led schemes to improve access to credit.
How to Invest in Bank Penny Stocks?
Here is how one can invest in the best penny stocks in banking sector:
- Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
- Conduct thorough research into the best bank penny stocks that are 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.
- Place a ‘Buy’ Order on the bank sector penny stocks of your choosing.
Benefits of Investing in Bank Penny Stocks
- Improving Asset Quality: Several banks have reported a decline in non-performing assets (NPAs) over recent quarters. For instance, Scheduled Commercial Banks saw their gross NPA ratio fall to 2.54% by September 2024, a 13-year low, while net NPAs dropped to 0.57%. These improvements show aggressive resolution strategies, asset clean-ups, and regulatory action.
- Financial Inclusion Push: Government schemes like the Pradhan Mantri Jan Dhan Yojana and rural credit programmes are expanding banking access. Smaller banks often see higher deposits and more lending activity through these initiatives.
- Policy Support: Public sector recapitalisation and targeted lending schemes strengthen smaller banks. These measures improve their capital base and increase their lending capacity.
- Digital Expansion: Regional and smaller banks are adopting technology to improve efficiency. Mobile apps, ATMs, and remote banking platforms help them reach more customers while reducing operational costs.
Risks of Investing in Bank Penny Stocks
- High Price Volatility: Banking sector penny stocks may see sharp price swings because of their low market capitalisation and limited liquidity. Even small news updates or sector changes can lead to significant price movements.
- Competition from Larger Banks: India’s banking sector is dominated by well-capitalised private and public banks. Smaller banks may find it harder to maintain their market share, especially in retail lending, digital services, and corporate banking.
- Technology and Cybersecurity Risks: With rapid digitisation, smaller banks face more pressure to upgrade their technology and protect customer data. Limited resources can make them more vulnerable to operational disruptions and cyber threats.
- Regulatory Oversight: The banking sector operates under strict regulatory control. Any negative findings during audits or compliance checks can directly affect stock prices, which makes banking sector penny stocks more sensitive to regulatory changes.
Factors to Consider Before Investing in Bank Penny Stocks
- Sector-Wide Credit Growth: Tracking credit demand across retail, MSME, and corporate segments can help investors understand where smaller banks are positioned.
- Asset Quality Trends: Monitoring a bank’s gross and net NPAs provides insights into its financial health. Declining NPAs is a sign of improving risk management, while rising NPAs may signal stress in loan books.
- Capital Adequacy and Recapitalisation: Reviewing Capital Adequacy Ratio (CAR) levels helps gauge how well-capitalised the bank is to absorb losses. Public sector recapitalisation plans in recent budgets also directly impact smaller banks’ lending capacity.
- Digital and Operational Capabilities: With increasing digitisation in banking, evaluating investments in technology, cybersecurity, and mobile banking platforms highlights a bank’s ability to compete with larger peers.
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To Wrap It Up…
India’s banking sector plays a key role in driving economic growth through credit expansion, financial inclusion, and policy-led initiatives. Recent reforms and government schemes have given smaller banks greater visibility and faster growth opportunities. However, the sector also carries risks such as price volatility, asset quality concerns, and reliance on regulatory support. Understanding these dynamics is important before evaluating any investment opportunities in this space.
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Frequently Asked Questions About Bank Penny Stocks
1. What are bank penny stocks?
Penny stocks of banks are shares of banking companies trading at prices below ₹50. These may include public sector banks, private sector banks, small finance banks, or regional lenders operating in retail and corporate banking segments.
2. Are bank penny stocks a good investment?
While bank penny stocks may benefit from financial inclusion drives, recapitalisation, and digital banking growth, they also involve risks like price volatility and asset quality pressures. Understanding company fundamentals and sector conditions is key before evaluating them further.
3. What are some of the top bank penny stocks?
As of 25 August 2025, some of the best bank penny stocks based on market capitalisation include:
- Indian Overseas Bank
- Yes Bank Ltd
- UCO Bank
- Central Bank of India Ltd
- Punjab & Sind Bank
Disclaimer: This list is for informational purposes only and should not be considered a stock recommendation.
4. Are bank penny stocks risky?
Penny stocks in banking sector do carry certain risks due to their lower prices and limited liquidity. Factors like asset quality concerns, regulatory dependencies, and competitive pressures can add volatility. While they may benefit from policy support or operational improvements, their performance depends on multiple external and internal factors.
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