Don’t Miss Out on These 5 Profitable Banking and NBFC Stocks

Want to know how to invest in the best bank and NBFC stocks that can give you high returns and dividends? Read this article to know more.

5 Financial Stocks

Are you looking for the best bank and NBFC stocks to invest in? If yes, then you are in luck. In this article, we will share with you the top picks from Axis Securities, a leading brokerage firm that has analysed the Q1 performance and medium-term outlook of the banking sector. You will discover how these stocks can give you high returns and dividends, despite the seasonal weakness generally seen in Q1. You will also learn how these stocks are benefiting from the strong demand across segments, especially in the retail/SME segment.


  • Axis Securities' top bank and NBFC picks.

  • The suggested picks include ICICI Bank, SBI bank and more.

  • Companies benefiting from strong demand in retail/SME segment.

  • These companies offered high returns and dividends despite Q1 weakness.

Also ReadTop 10 Sectors That Are Hot Favourites Among Mutual Fund Managers in 2023

These stocks, recommended by Axis Securities, have strong fundamentals, growth prospects, and return potential. They can help you diversify your portfolio and earn high returns and dividends. These are likely to benefit from the strong demand across segments, especially in the retail/SME segment. However, before investing in any stock, you should do your own research and consult your financial advisor.

Top picks from Axis Securities are mentioned below:

1. CreditAccess Grameen

Current Price: Rs. 1391. Book Value: Rs. 342. PE ratio: 22. One-year return: 40%.

Reasons for recommendation:

  • Strong rural presence and focus

  • Customer-centric approach

  • Robust technology infrastructure

  • Strong risk management framework

  • Adequate capitalisation

2. ICICI Bank

Current Price: Rs.970. Book Value: Rs. 316. PE ratio: 18. One-year return: 11%. Dividend yield: 0.83.

Reasons for recommendation:

  • Outperformed its peers and growing fast

  • Strong retail-focused liability franchise

  • Buoyant growth prospects

  • Stable asset quality and healthy provision coverage

  • Adequate capitalisation

  • Potential to deliver robust returns

3. State Bank of India

Current Price: Rs.573. Book Value: Rs. 392. PE ratio: 7.6. One-year return: 10%. Dividend yield: 1.98.

Reasons for recommendation:

  • Healthy credit growth

  • Healthy PCR

  • Adequate capitalisation

  • Strong liability franchise

  • Improved asset quality outlook

4. Federal Bank

Current Price: Rs.141. Book Value: Rs. 111. PE ratio: 9.64. One-year return: 24%. Dividend yield: 0.72.

Reasons for recommendation:

  • Strong credit demand and off-take across segments
  • Expected to deliver 1.3% RoA in FY24 and gradual improvement over medium term

5. Ujjivan Small Finance Bank

Current Price: Rs.49. Book Value: Rs. 22. PE ratio: 7.84. One-year return: 135%. Dividend yield: 2.55.

Reason for recommendation:

  • Has strong growth levers across segments

  • Can deliver 25% CAGR advances growth over FY23-25E

  • Has strong asset quality and low credit costs

  • Aims to deliver 2.5% + RoA on a steady state basis

Also ReadTop 3 Best Performing Sectors in the Indian Stock Market: Future Prospects for 2023

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