Bank stocks to buy now for an upside of up to 35%

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-regulated. Being one of the fastest-growing Fintech markets in the world, the Indian ‘Fintech’ industry is estimated to be at $150 billion by 2025. The Banking industry has recently witnessed the rollout of innovative models like payments and small finance banks.

Bank stocks to buy now for an upside of up to 35%

Listed below are three Bank stocks that got a ‘Buy’ recommendation from top Broking Firms based in India exhibiting a potential upside of up to 35 percent:

Canara Bank Limited 

With a market capitalization of Rs 86,479.59 crores, the stocks of Canara Bank Limited closed at Rs 476.70 in the trading session that took place on Saturday, gaining approximately 2.20 percent as compared to the previous closing levels of Rs 466.60 apiece.

Hem Securities gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 538 indicating a potential upside of around 13 percent as compared to the current stock price level prevailing in the market. 

The rationale behind providing such a recommendation pertains to the improved net interest margins (NIMs), consistent asset quality, recent merger events, and strong recovery of the Indian Banking sector as a whole.

Federal Bank Limited 

With a market capitalization of Rs 35,408.65 crores, the stocks of Federal Bank Limited closed at Rs 145.55 in the trading session that took place on Saturday, slipping approximately 0.70 percent as compared to the previous closing levels of Rs 146.60 apiece.

HDFC Securities gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 190 indicating a potential upside of around 31 percent as compared to the current stock price level prevailing in the market. 

The rationale behind providing such a recommendation pertains to the business growth portrayed by the Bank’s deposits outpacing credit growth. Despite slippages, the asset quality of the Bank stays stable with less estimation of bad loan provisions.

HDFC Bank Limited 

With a market capitalization of Rs 11.23 lakh crores, the stocks of HDFC Bank Limited closed at Rs 1,478.65 in the trading session that took place on Saturday, gaining approximately 0.60 percent as compared to the previous closing levels of Rs 1,470.70 apiece.

Prabhudas Lilladher gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 2,000 indicating a potential upside of around 35 percent as compared to the current stock price level prevailing in the market. 

The rationale behind providing such a recommendation pertains to the net interest margins (NIMs) staying intact with a few concerns raised about the liquidity squeeze witnessed recently.