Nifty Bank: What Led to Its Rally and Which Were the Top 5 Bank Stocks in 2022?
Nifty Bank Performance
The current year has been characterized by a lot of economic uncertainties. Roaring inflation, geopolitical tensions, rising interest rates, and elevated oil prices have contributed to muted returns from the stock markets. However, a sector which has been among the stark outperformers in India has been the Nifty Bank. Solid revival of credit demand, rise in deposits, interest rate hikes, marked reduction in bad assets, and the government’s massive capex push have acted as growth drivers for the sector.
While Nifty has given a return of just 4.4% this year, Bank Nifty has jumped 20.7% in the same period.
Now let’s find out which were the best performing Nifty Bank stocks in 2022
Top 5 Banking Stocks of 2022
Bank of Baroda: Gujarat based PSU Bank of Baroda has been the best performer among all the Nifty Bank stocks in 2022. The bank’s stock has given a return of roughly 121.5% in 2022. In the latest quarter, the bank’s net profit registered a yearly growth of 59% to Rs 3,312.42 crore. Similarly, the Net Interest Income (NII) - a difference between interest earned and interest expenses - for the bank witnessed a year-over-year growth of 34.5% to Rs 10,174.46 crore.
Federal Bank: Kochi based Federal Bank occupies the second place in terms of best stock price performance among Nifty Bank stocks. The share price of the company has gained 61% in 2022. The company’s latest quarterly results were impressive with profit soaring 53% from the previous year to Rs 704 crores. Whereas, NII saw a yearly growth of 19% to Rs 1,762 crore.
Punjab National Bank: After being mired in controversies in recent times, the PSU lender has made a brilliant comeback in 2022. Shares of Punjab National Bank have risen more than 47% in 2022. However, the bank reported a decline of 63% in its net profit to Rs 411 crore in the latest quarter. Yet, NII witnessed a year-over-year growth of 30% to Rs 8,271 crores.
IndusInd Bank: Mumbai based IndusInd comes next in the list of Bank Nifty top performers in 2022. The share price of the company has gained almost 37% in the year. The bank’s net profit recorded a sharp growth of 60% from the previous year to Rs 1,787 crore in its latest quarter. Meanwhile, NII witnessed a growth of 18% yearly to Rs 4,302 crores.
Axis Bank: Private sector lender Axis Bank completes the list of the best performing Nifty Bank stocks for 2022. Shares of the banking major have jumped 36% in 2022. In the latest quarter, the bank’s net profit jumped by 70% from the previous year to Rs 5,330 crores. Moreover, its NII grew 31% year-over-year to Rs 10,360 crores.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.
Is Bank of Baroda a good share to buy?
LKP Securities has buy call on Bank of Baroda with a target price of Rs 202. The current market price of Bank of Baroda is Rs 138.8. Time period given by analyst is one year when Bank of Baroda price can reach defined target.
Is Federal Bank good for long term investment?
It's good to see that Federal Bank has rewarded shareholders with a total shareholder return of 43% in the last twelve months. That's including the dividend.
Is PNB share worth buying for long term?
Punjab National Bank has outperformed its peers on all important parameters including growth, asset quality and margins. Investors should consider it for long-term investment. Punjab National Bank (PNB) is always counted among the best banks in India.
How strong is IndusInd Bank?
IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. IndusInd Bank is the first among the new-generation private banks in India.
What is happening to Axis Bank?
The ratings agencies predicts Axis Bank's weak loans could decline to 2.5 percent-3.0 percent of total customer loans by end-March 2023, from 3.7 percent as of March 31, 2022.