Banks are known as the backbone of an economy because they maintain sufficient liquidity by circulating money.
They provide people a platform to park their surplus cash as well as borrow when they fall short.
Banking stocks are very closely linked to economy as both credit growth and margins are dependent on GDP growth and interest rates.
Banks tend to have high non-performing assets (NPAs) when interest rates are high and economy is underperforming and vice versa.
The best time to buy banking stocks is when interest rates start falling as the cost of borrowing for banks goes down immediately while the interest, they charge on loans stays high and falls with a lag.
For more details, check out our banking sector report . You can also check out Equitymaster's powerful stock screener to find the top banking stocks in India.
Apr 22, 2024
During the quarter, HDFC Bank sold its stake in HDFC Credilla for a gain of Rs 55.3 billion and made a floating provision of Rs 109 billion.
Apr 8, 2024
HDFC Bank shares climbs 9% in seven sessions. Is the worst over?
Apr 1, 2024
Public sector banks (PSBs) in India are poised for a record-breaking dividend payout exceeding Rs 150 bn in FY24, driven by significant profit surge. Do you own any of these 5 PSBs?
Feb 8, 2024
Yes Bank shares hit their highest level since June 2020, surging 43% in three days. What's driving the rally?
Feb 1, 2024
Fiercely competing with their public sector peers, investors must keep an eye on these 10 private banks in the coming year.
Jan 26, 2024
The ability for banks like Union Bank of India and Canara Bank to manage their NIMs would be key, given that the rate easing cycle is still 6-9 months away.
Dec 5, 2023
Axis Bank share price jumps over 10% in a week, hitting a new 52-week high. Here's why.
Nov 1, 2023
After reporting robust quarterly numbers, shares of the lender have encountered a roadblock. Read on to find out why.
Oct 17, 2023
Going by HDFC Bank's history of mergers, the temporary dip in margins and return ratios are unlikely to dent long term fundamentals.
Oct 6, 2023
Selecting stocks in India's banking ecosystem warrants a close eye on quality.
Apr 20, 2024
The stock is down 5% in the last five days.
Apr 2, 2024
Shares of this PSU bank zoomed 8% in a day. What's driving the rally?
Mar 19, 2024
Here's why shares of the bank fell 5% in day, after the company reported robust quarterly numbers for the December 2023 quarter.
Feb 7, 2024
Shares of this PSU bank zoomed 13% today and hit their 52-week high. What's driving the rally?
Jan 30, 2024
AU small Finance Bank tanks 12% in a day, hits 9 month's low. Here's what caused sudden fall?
Dec 27, 2023
Shares of the third largest PSU bank in the country touched their 52 week high today. Here's why.
Nov 30, 2023
Can the top 4 underperformers of 2023 turn star performers in 2024? Read on to find out.
Oct 27, 2023
This bank stock is up over 30% in 2023 so far. Does Mukul Agrawal's addition make it more compelling?
Oct 8, 2023
Find out the best Banking & PSU Debt Funds that have consistently provided investors in debt mutual funds with superior risk-adjusted returns.
Sep 27, 2023
Selecting stocks in India's banking ecosystem warrants a close eye on quality.