Do you have the same long-term investment plan also in mind? If yes, then bank stocks are one of the ideal options for you that you can go with. The banking industry is the mainstay of the economy of the country in the Region. Banks are so intertwined with the growth of the country in which they are situated that they also expand with the growth of the nation.
Here in this blog, we would like to share with you which 10 bank shares may be good for the long term. Of course, different from other businesses, the stock market is never guaranteed, and always unpredictable. When considering any investment, however, always consult an ordained financial consultant.
Best 10 bank shares to buy for long-term
Let’s see the top 10 bank shares to buy for the long term in India 2024:
1. State Bank of India (SBI)
SBI is the largest public sector bank in India and it has its origin in the year 1806. SBI has a large branch and ATM network in the country caters to several crores of people and is an important player in the Indian banking services industry. Some of the products and services by the bank include savings accounts, loans, insurance, and investment opportunities among others.
Financial Health
- Market Capitalization: ₹7,83,893 crore.
- Net Profit: Profit of ₹61,077 crore in FY 2024.
- Gross Non-Performing Assets (Gross NPA): 2.78%.
- Net Interest Margin (NIM): 2.58%.
- Capital Adequacy Ratio (CAR): 13.13%.
Why Invest in SBI?
SBI is the market leader in India as it stands as the leading bank shares in the country. Since SBI is a government undertaking, it has the backing of the government which makes investors feel more secure.
SBI offers usual and steady dividends so that investors will continue to earn from them. SBI’s strategies for its growth will enable it to record good profitability in the future. Thus, it will be profitable for banks, especially in India and SBI as well.
2. Indian Overseas Bank (IOB)
Indian Overseas Bank (IOB) is a state-owned bank established in the year 1937. IOB is a heritage bank located in Chennai, Tamil Nadu and the bank has a wide establishment all over India. They include personal banks, corporate banks, agro loans international banks and other services.
IOB has more than 3200 branches and over 3200 ATMs all over the country and has an international presence in its strategic areas like Singapore, Hong Kong and Sri Lanka.
Financial Health
- Market Cap: ₹1,22,979 Crores (as of FY 2024)
- Net Profit: ₹632.8 Crores (FY 2024)
- Gross NPA: 3.10%
- Net NPA: 0.57%
- Capital Adequacy Ratio (CAR): 17.28%
- Provision Coverage Ratio (PCR): 96.96%
Why Invest in IOB?
In the past few years, IOB has achieved a lot in its attempt to reduce its non-performing assets. This can be attributed to the enhanced quality of the bank’s assets and the solidity of the loan book. IOB is a government bank shares, so it enjoys the backing of the government. Which gives security and stability to the bank.
For instance, IOB is implementing digital banking in a bid to offer convenient services to customers and ease of work. This will allow them to serve future needs and sustain market dominance.
3. IDBI bank
IDBI stands for Industrial Development Bank of India established in 1964. It was set up as an institution of financial aid for development and has been a fully-fledged commercial bank since the year 2004.
This bank has its origin in Mumbai and extends over India, catering to millions of retail and corporate clients. This bank shares provides services such as deposits, savings, business, government, and foreign accounts.
Financial Health
- Market Cap: ₹95,750Cr.
- Net Profit: ₹1,719 Crores (FY 2024)
- Gross NPA: 3.87%
- Net NPA: 0.23%
- Provision Coverage Ratio (PCR): 99.34%
Why Invest in IOB?
LIC, which owns a major stake in IDBI Bank, is helping it to grow gradually. The operations of the bank shares are therefore aimed at enhancing operational efficiency, quality of assets and profitability.
LIC is a major pillar of support and is strategic in its value addition to the operations of IDBI Bank. Their ability to refocus on retail lending, especially in-home loans and auto loans coupled with the shift towards digital banking would easily grow its market share and profitability.
IDBI Bank shares are currently available at a lower price than its peers. For long-term investors, this could be a good opportunity to invest in a bank that is on a recovery path and has strong growth potential in the future.
4. UCO Bank
UCO Bank was established in the year 1943 and is one of the oldest public sector banks in India. Based in Kolkata UCO has a large branch network of over 3000 branches. With a large network and highly customer-oriented approach, UCO Bank has been a significant contributor to the Indian banking market.
The bank shares have remained relevant in the market by offering different services such as retail, corporate and international services.
Financial Health
- Market Cap: ₹68.51K Cr.
- Net Profit: ₹551 Crores (FY 2024)
- Net NPA: 3.15%
Why Invest in UCO?
UCO Bank is one of the oldest banks in India, which also proves its stability and proper work. However, there are indications that UCO Bank has commenced the process of enhancing its financial health. This is good news for investors.
The large branch network and further development of digital offerings will result in above-average growth in the future. One of the biggest strengths of UCO Bank is that this is a government bank, so government support can also be viewed as a major shield for investors.
5. Central Bank of India
Central Bank of India is one of the oldest and most recognized government bank stocks a buy in India which was founded in 1911. This bank shares buy has branches spread across the country and it offers various banking services to people such as saving accounts, loan facilities etc.
Financial Health
- Market Capitalization: 56.09K Cr.
- Net Profit: ₹807 Crores (FY 2024)
- Net NPA: 1.23%
- Total Deposits: ₹3,78,232.41
- Total Advances: ₹243,406.28
Why Invest in the Central Bank of India
It is an old bank and people are well aware of this bank and it has branches in almost all the states. It offers a range of banking products to both private customers and businessmen and women. This minimizes the risk aspect as well as expands the opportunities to make money.
It operates as a government bank and this means that it benefits from government funding and this provides investors with assurance. It seems that the bank is enhancing its operations and the digital banking segment may develop in the future as well.
6. IDFC First Bank Ltd
A relatively young but active player in the banking industry in India is IDFC First Bank. Founded in 2015, this bank offers exclusively retail banking and innovative products and services for the client.
This bank aims to close the gap between conventional and automated banking as well as introduce new products in banking together with quality customer services.
Financial Health
- Market Capitalization: ₹54,185 Cr.
- Net Profit: ₹728 Crores (FY 2024)
- Non-Performing Assets (NPA): 1.65%
Why Invest in the IDFC Bank
This business is forecasted to develop largely, particularly in the sphere of retail banking. The bank has also been in a position to establish a large base of customers through the provision of better experience and focusing on their needs. The bank has plans to increase the number of branches and also go online to improve its market share penetration.
However, the overall financial health of IDFC First Bank shares is excellent even though it is a relatively young bank. This is a good trend because the bank is focusing on technology and digital banking which will help it in the future.
7. Bank of Maharashtra
Bank of Maharashtra (BoM) is one of the leading public sector banks located in Pune. It was established in 1935 and has expanded over the years to be among the best bank shares to buy in India. It is prevalent in Maharashtra and other areas.
The bank targets all categories of customers, including individual customers and small to medium-sized enterprises. They include savings and current accounts, loans, investment services and insurance.
Financial Health
- Market Cap: Approximately ₹46,914 Crores
- Net Profit: ₹1,218 Crores (FY 2024)
- NPA (Net Performing Assets): 3.50%
Why Invest in the BoM
The Bank of Maharashtra is a government bank that receives support from the government, making the operations of the bank more stable and trusted. This support can prove useful in difficult economic environments.
Banks such as the Bank of Maharashtra can enhance their future development by focusing on the enhancement of various digital banking services as well as the introduction of new types of products. By implementing the new technology and shifting its focus to customer satisfaction, the bank will be successful in the long run.
8. Yes Bank Ltd
YES Bank was one of the most prominent private sector banks in India. It was always associated with growth and new ideas. However, the past few years saw the bank experience some financial woes. However, with the new team and reform plan, the bank shares to buy are on the right track and it is struggling to revive its former power.
Financial Health:
- Market Cap: ₹81.21K Cr.
- Net Profit: ₹502.43 Crores (FY 2024)
- NPA (Non-Performing Assets): 1.7%
Why Invest in Yes Bank?
The presence of a new management team and the strategic shifts implemented can play a role in stabilizing the bank and regaining investors’ trust. The bank has the opportunity to expand when it comes to more online and retail services and products.
While there could have been issues in the earlier period, the current stock price can be advantageous to long-term investors. The backing given by the institutional investors as well as the government enhance the operations of the bank.
9. Bandhan Bank Ltd
Bandhan Bank is a growing bank in India that is especially promoted for banking for the people the poor and inhabitants of rural areas. It was established in 2001 as a microfinance institution, and in 2015, it transformed into a universal bank. The bank aims to establish banking facilities for the lo of financial level and bring their standards up.
Financial Health:
- Market Capitalization: ₹32.050 Cr.
- Non-Performing Assets (NPA): 7.0%
- Capital Adequacy Ratio (CAR): 19.76%
Why Invest in Bandhan Bank?
Bandhan Bank has been making good profits regularly and this bank’s NPAs are also not a matter of concern. Good capital base and profitability are other factors that could compel long-term investors to put their money in these bank shares.
Currently, Bandhan Bank has opened its new branches and also is focusing on digital banking. It also increases the number of customers besides cementing the bank’s market presence and positions it for future development.
Bandhan Bank shares emphasize Internet banking and innovative banking products and services. This is good service to the customers and the work of the bank is done in a better way.
10. Federal Bank Ltd
Federal Bank Limited is a private sector bank operating in India with its headquarters situated in Aluva, Kerala. This bank began its journey in 1945 and has expanded a lot over several years and has carved a niche in the Indian banking sector.
Federal Bank shares is famous for many products and services and it has a good network within the regional area for banking services including retail and corporate.
Financial Health
- Market Capitalization: ₹50.16K Cr.
- Net Profit Margin:51% (FY 2024)
- Non-Performing Assets (NPA):36%
Why Invest in Federal Bank?
Digital banking has proven to be adopted at a very fast rate in Federal Bank. This benefits the customers and at the same time helps the work of the bank to run smoothly. It also assists in the coverage of more people.
This factor indicates that the bank’s management is strong and good regulations contribute to the bank’s stability. The performance of the Federal Bank shares has been good and the stock will go up in the future also. Because of this, it can be perfect for long-term investors.
Conclusion
Bank shares can be amongst the most useful to include in the portfolio for long-term passive income. However, this article has been written to pass information to the reader, and should in no way be taken as advice to investment.
Please do your research and use a professional financial advisor before investing in any of these bank shares. Each of the bank shares has its pros and cons depending on the risk tolerance level of the investor.
Want to see the magic of AI? Read our blog post Artificial Intelligence Stocks in India. Strengthen your bank shares portfolio with these great technology stocks and keep making money for a long time!
Disclaimer
This blog does not contain any sort of financial tips or strategies. It is highly recommended that you perform your research and seek advice from a licensed financial consultant before investing in bank stocks. I will not take any responsibility for the information provided in this blog.
FAQs
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What are the reasons for long-term investments in shares of the bank?
Investing in bank shares comes with colourful characteristics such as stability, reliability of dividends, and growth. Banks being a part of the economy usually give long-term returns provided, of course, that they are healthy banks with comparatively high growth rates.
2. What factors should I consider when choosing bank shares for long-term investment?
The criteria to use in selecting bank shares would then be the bank’s financial status, net profit, NPAs, operations growth rate, market position and strategic plans. As well, as conduct an assessment of the management and governance of the bank in consideration.
3. Should one invest in private sector banks more than investing in public sector banks?
There are pros and cons of both private sector banks and public sector banks. Private commercial bank shares may have superior asset quality and returns, while SBI and other public sector banks may have a wider customer base and government support. It means that it is possible to offset the risk of loss by investing in both sectors at the same time.