Best Bank Stocks to Buy | Banking Industry in India | SBI, HDFC Bank, ICICI Bank, Axis Bank & Kotak

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The best bank stocks in India have delivered upwards of 15% in annual returns in the past decade. In this video, which also doubles up as a fundamental analysis of India's banking sector, we examine the most popular banks that make up a large part of the banking industry in India. My research has led me to 11 important variables that one should measure when evaluating any banking stock and I shall explain these with numbers across 5 Indian banks:
‣ State Bank of India
‣ HDFC Bank
‣ ICICI Bank
‣ Axis Bank
‣ Kotak Mahindra Bank
This is the fifth industry analysis on my channel. I sincerely hope you find it useful, please do give it a thumbs-up and don't forget to subscribe to my channel
👉 Video Chapters:
00:00 Banking Industry in India
01:22 1. Deposits
02:31 2. CASA Ratio
04:59 3. Lending
08:03 4. Net Interest Margin
09:47 5. Capital Adequacy Ratio
10:51 6. Gross & Net NPA
13:51 7. Segmental Revenue
16:03 8. Cost to Income Ratio
17:13 9. Return on Asset
19:20 10. Price to Book Value
20:17 11. Value of Subsidiaries
21:32 Shankar's Viewpoint
🔥 Top Videos on My Channel (don't forget to subscribe)
‣ Coffee Can Investing : • How to Build a Coffee ...
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‣ Magic Formula Strategy for Indian Stocks : • Magic Formula Investin...
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👉 Useful resources & readings
‣ Banking Sector Roundup (H1, FY2023) by Boston Consulting Group : web-assets.bcg.com/56/4a/b3fc...
‣ A Presentation by Mr. Arvind Datta on Elearnmarkets channel : • The A2Z of Banking Sec...
‣ A Presention by Mr. Digant Haria on SOIC channel : • I follow him for NBFC ...
‣ Prabhudas Lilladher report on HDFC Bank : www.plindia.com/samplereports...
‣ Motilal Oswal report on ICICI Bank : ftp.motilaloswal.com/emailer/R...
‣ ICICI Direct report on SBI (State Bank of India) : www.icicidirect.com/mailimage...
‣ Prabhudas Lilladher report on Kotak Mahindra Bank : www.plindia.com/samplereports...
‣ Motilal Oswal report on Axis Bank : www.motilaloswal.com/site/rre...
#hdfcbank #icicibank #statebankofindia #kotakbank #axisbank #bankingsector #banknifty
Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented

[@gauravpurandare3144]

I am a Chartered Accountant and can bet that this is one of the best content video on analysing banks! Great work Shankar ji and keep going! :)

[@shankarnath]

Thanks a ton Gaurav ji

[@rahulbharti0104]

Till date no one has explained boring banking sector in straight forward way covering almost all the topics... 👍👍

[@shankarnath]

Glad you found it helpful

[@IndiaNirvana]

These videos are like ready to eat meal. Reduced our analysis time from days to minutes. Kudos to you Shankar!

[@shankarnath]

Glad to hear that, thanks!

[@rsanjay87]

Straight forward analysis 🎉

[@varunbajpai545]

Thank You, Sir This is very insightful

[@shankarnath]

You are very welcome. Glad you liked it, it's one of my favourite sector videos

[@sudhanshugrover9329]

Such a complex topic explained so easily! Really informative video! Thank you for this

[@shankarnath]

You're so welcome. Glad you liked it!

[@mohitjohri7572]

As always, very well researched video. Keep rocking Shankar ji :)

[@shankarnath]

Thank you Mohit ji .. appreciate it!

[@ajohnsavio]

Great content, crisp and to the point. Thank you!

[@shankarnath]

Glad you liked it!

[@gpatel]

You have summed it up very nicely. Thank You for the enriching video. Keep it up. You sound quite well-versed.

[@shankarnath]

Thank you very much, Ganesh ji. Yes, this video was a lot of work .. took 3 days but it has come out well.

[@gpatel]

@@shankarnath Thank You. Now I hope I will be able see between the lines

[@yathartam]

Mind blowing Video, Cristal Clear Hats off Mr. Shankar

[@shankarnath]

Thank you very much!

[@sanjivbehera5558]

Nice research. Clean video. So many concepts got cleared. 👌

[@shankarnath]

Thanks. Glad it was helpful!

[@axt6760]

Very comprehensive presentation. Thank you for sharing 👍

[@shankarnath]

My pleasure! Glad you liked it

[@nandis0049]

This analysis would definitely enhance my knowledge about Banking Sector.Thank you!

[@shankarnath]

Most welcome!

[@hardikshah1591]

Your videos are really knowledgeable and interesting to listen. Thank you for such valuable content.

[@shankarnath]

Thank you very much. Glad you are finding the videos useful

[@anupdsouza]

Always banking on your videos with interest for detailed analysis of sectors & businesses. Thank you Shankar!

[@shankarnath]

My pleasure. Thank you very much for your kind words and encouragement, Anup

[@SouvyaBusiness]

THANKS 🙏 WAS SEARCHING FOR THIS SORT OF CONTENT

[@shankarnath]

Glad to hear that

[@Funfacts6585]

Thank you Shankar, lot to learn in this video in fact all your videos🎉

[@shankarnath]

Thank you very much. I'm happy you liked it.

[@neerajjoseph8963]

Thank you for this Shankar, Banking was a mystery for me and your video has helped a lot. Looking forward to more such insightful content. Thanks again.

[@shankarnath]

My pleasure. Glad you found the video useful. Please don't stop at this and pick up the latest investor presentation of a couple of banks I didn't list here e.g. Bandhan Bank or IDFC First or Canara Bank .. and do a review for that bank. It will improve retention of these metrics. Thx!

[@leninbabu8310]

Thanks for detailed explanation.

[@shankarnath]

Most welcome

[@DrNikkhil]

Loved it. Thank You

[@shankarnath]

Glad you enjoyed it!

[@ADITYAYADAV-gx3kt]

Great video sir...thank you very much !!

[@shankarnath]

Most welcome! Glad you found it useful, Aditya

[@Vinkalm]

Great content again shankarji...loved it

[@shankarnath]

Glad to hear that. Thanks a ton!

[@Ramkumarkaruna]

Wow! Awesome explanation 😍 I am gonna use this video as handbook whenever I have to analyse the bank❤️

[@shankarnath]

Glad it was helpful!

[@ej_whistleblower]

Informativo! Gracias

[@shankarnath]

Glad you liked it

[@ramalingamk5356]

Useful content.Thank you sir.

[@shankarnath]

Most welcome, Ramalingam

[@amanrathod9043]

One of the best explanation

[@shankarnath]

Glad you liked it

[@ashishasati]

Sir your material and explanation is awesome 😉....God bless you sir 🙏🙏🙏

[@shankarnath]

Thank you very much, Ashish.

[@abhijeetgyal]

Superb analysis and learnings! Thanks for sharing! 👏👏👏👌👌👌

[@shankarnath]

My pleasure!

[@shilpagupta2557]

Exhaustive analysis. Never seen a video like this before on the banking sector

[@shankarnath]

Thank you very much

[@dinakarmn]

Hi Shankar, yet another wonderful recipe👌 Its a ready reckoner for bank stock selection 👍

[@shankarnath]

Thanks a lot

[@sinchannnn8690]

Cleared lots of doubts….learned new things…thank you sirji

[@shankarnath]

Happy to hear that. Please share it with your friends and well-wishers aswell.

[@revanthgowd5744]

Very usefull thank you😊

[@shankarnath]

So nice of you. Most welcome

[@tanmaythegr8]

Far better analysis than any equity research report ive read. Great Work !!

[@shankarnath]

Thank you very much

[@madhua87]

Simple superb. Sir

[@shankarnath]

Thank you!

[@thyagtubes]

Your videos continue to be one of the highest quality in Indian markets. Keep it up!!

[@shankarnath]

Thank you! Glad you like them

[@baskarchockalingam2421]

Great bro Have to sit and listen again to take notes with pen n paper👍👍

[@shankarnath]

Pls do 🙌

[@koustuvdutta]

This video is priceless!!

[@shankarnath]

Glad you liked it. It took me 3.5 days to put this together, lots of work

[@opinonated_soul]

Excellent analysis..

[@shankarnath]

Thx 🙌

[@devathimahesh8007]

Realy a good content sir

[@shankarnath]

Thank you very much

[@hemanthkaja]

Shankar ji, beautiful content. I have avoided Banking sector all this time because of its complexity and here you made it look so simple

[@shankarnath]

Most welcome. Glad you found it useful. Yes, I too thought the sector to be very complex but realized it comes down to a few variables.

[@dsaha7700]

Shankar Ji, You have enhanced further knowledge in Banking sector as a whole with crisp and clear data backups.. also got few critical inside which will help to take further action at my ends... Very very informative and helpful.. 👍🙏🙏

[@shankarnath]

So nice of you. Thank you very much for your kind & sincere appreciation. I am glad you liked it

[@sumanmazumder2127]

Much needed video for a retail investor. I have learned lots of things from your videos. Thank you for this type of content.

[@shankarnath]

My pleasure. Glad it was helpful!

[@vishalgupta9156]

Sir, no words to appreciate your hard work 🎉

[@shankarnath]

Glad you found it useful, Vishal

[@anc4611]

An excellent summary of banking

[@shankarnath]

Thank you, Anjan

[@GSh-pg6bh]

great help. keep doing the good work. Request to cover other major segments. Hope your channel grows exponetially. Content is really good

[@shankarnath]

Thank you. I have covered 6 sectors so far with the latest being the IT Services sector. Pls bookmark this playlist: kzbin.info/www/bejne/o5W2ZaFmh5imZrc

[@GSh-pg6bh]

Yes I have seen. IT industry I hv already watched. Will watch others.

[@Jasi10011993]

Very good analysis 👍

[@shankarnath]

Thanks for liking it. Pls share it with your friends and well wishers

[@VishalSoni-zp2ub]

Fantastic video and great timing to bring it. Can you please create videos which are focused on each bank? I know there are a lot of banks but 1-2 big private, PSU and new banks would add more value.

[@shankarnath]

Thank you

[@smart3883]

Wonderful video and very informative for beginners

[@shankarnath]

Glad it was helpful!

[@tahirhusain4090]

Thank you sir 🙏

[@shankarnath]

Most welcome Tahir ji

[@samsrini]

Thanks a lot, though I am aware a lot of these, but connecting the dots to each other is something I do not really want to miss watching your Videos. Your level of explanation is always great.

[@shankarnath]

Most welcome. Glad it was helpful!

[@carlsagan4411]

Great Analysis!!

[@shankarnath]

🙌

[@sleevareddy628]

Content, presentation... exceptional. Please do videos on PMS & AIF.

[@shankarnath]

Thanks

[@rishikeshshewale5458]

Great efforts Shankarji...You are rational and data man in investing.

[@shankarnath]

So nice of you. Glad you found the video useful. 🙌

[@vijetarvindpatil7579]

Thank you Guruji!

[@shankarnath]

Most welcome

[@ayushchiddarwar8559]

Your humour in the video at serious points is at the next level

[@shankarnath]

:) .. thanks!

[@suprabhaset8449]

Grt sir

[@shankarnath]

Thank you very much Suprabha ji .. glad you liked it

[@mail2viveks]

What a killer thumbnail! I do not invets in individual banks, I just buy ETFs, buy when down, sell while up.

[@shankarnath]

Thank you

[@chinmaya362]

These videos are really good and make strong basics for fundamental analysis. Is it possible for you to have energy sector analysis( specifically green energy)

[@shankarnath]

Thank you for the appreciation and the suggestion

[@akshaypotdar1840]

Very insightful, thanks for sharing! It would be really great, if you could make similar fundamental analysis videos on other sectors too. TIA.

[@shankarnath]

Most welcome. Kindly bookmark this playlist for more updates: kzbin.info/www/bejne/o5W2ZaFmh5imZrc

[@akshaypotdar1840]

@@shankarnath Thanks for a swift response!

[@somnathhazra4488]

The so called Boring Banking Sector has been explained in such an interesting way with so much detailed explanation, that after watching this single video anybody can have an idea how to analyse Banking stocks. Thanks a lot Sir… Keep up the good work…👍🏼

[@shankarnath]

Glad it was helpful! Thank you very much for your kind appreciation

[@karthikkr7777]

What about IDFC

[@mr.gentleman3595]

Thank you sir

[@shankarnath]

Most welcome

[@Shree_470]

Shankar sir explanation is like reading a book. Thanks for detailed explanation sir.

[@shankarnath]

Most welcome, Srikanth. Glad you found it useful

[@aniketgupta4407]

you are the best boss 👌

[@shankarnath]

Thank you

[@raviarya6341]

Great content.. Framework is awesome 🎉

[@shankarnath]

Great to hear!

[@raviarya6341]

Just loved the way you have created the time stamps visible in the video with numbering and relevant caption in the video

[@shankarnath]

Thank you. Yes, this way it is easier to keep track of where one is in the video

[@aniketgupta4407]

so underrated you deserve millions subs

[@shankarnath]

Thank you for your vote of confidence

[@raizanumrigar2587]

Thank you for explaining it so well. which sector are you going to analyse next ?

[@shankarnath]

Most welcome. I'm working on something, will reveal as we come sooner to release date

[@Ravi-Krishna]

Great content, Shankar Nath ji, thank you for sharing knowledge. One request if I may ask, please add Chemical (Bulk, speciality and performance), Pharma API, and Paints industries to your list of future sectoral analysis videos, thanks in advance!

[@shankarnath]

Thank you for your appreciation and suggestions

[@kobe007xforu]

Super 👌...

[@shankarnath]

Thank you

[@ravinarayan5273]

Hi Shankar, thanks so much for the detailed insight of banks in India. As I am not able buy banks on Indian markets although US market have HDFC, ICICI and Axis bank listed. And also NIFTY Financials which are mainly banks. Any advice which one I should go with.

[@shankarnath]

Most welcome

[@samirmasrani9810]

Just extra ordinary

[@shankarnath]

🙌

[@suganthansrinivasan5367]

Wonderful insights. If you can shed some light on how to identify this cyclical business/sector rotation to enter and exit..

[@shankarnath]

Thank you

[@yaqooty2k]

Hi Shankar, what about banks earnings that are through non interest items like investments in capital markets? Is there a metric for the same?

[@kirangowdan7478]

Im also working in bank He is more knowledgeable person ever i seen

[@shankarnath]

Thank you very much Kirangowda ji. Glad you found the video useful

[@Gpsuraj99]

I think Shankar ji should re create insurance sector video next year post this year changes in budget

[@Anbu-Ini]

Thanks Shankar sir, for the wonderful analysis with solid data backup. This episode is like a gem in the crown. We are eagerly waiting for your brilliant analysis on Pipe sector, wires/cable sector, FMCG sector, IT sector...

[@shankarnath]

Most welcome & thx for your suggestion

[@sourabhpatel2391]

@@shankarnath fmcg please

[@1Bond007]

Hi Shankar ji.. I have top 3 pvt banks and Baj finance .. thinking about moving amt from Baj finance to the bank stocks (as PB of the finance comp is higher ).. any opinion on my plan sir?

[@ramanasharanam]

Lucid and brilliant !

[@shankarnath]

Thanks!

[@ramshad4544]

Really appreciate your effort to educate existing set of investors as well as prospective investors. Requesting you to do a detailed analysis of IT industry as well, as investors have doubt whether they can increase the positions in IT stocks or sell it off.

[@shankarnath]

Most welcome. Thank you for your suggestion

[@PiyushSharma-mo9qo]

sir, if you can put all these ratios in screener website after the end of video if would be much useful.... also please make a video on how to analyse IT sector.. lastly quality of your content is really very good.....regards and love to you sir ♥🙏

[@shankarnath]

Thank you

[@Frankalin]

Hi Sir, Please Make video on Health Care Sector- Hospitals

[@shankarnath]

Thanks for the suggestion

[@SundaramV-gy4yg]

After this video I got clear understanding about banking sector fundamental analysis. Similarly can you do for pharma sector also it will be helpful.

[@shankarnath]

Thank you for the suggestion 🙌

[@lakshminaveen-os2th]

Kindly publish analysis on IDFC

[@saifk1425]

A great video, however it would be better if you had also ranked the banks from 1 to 5, as to which is the best in the list.

[@shankarnath]

Thank you

[@NiharShembekar]

Shankar Nath = Clarity of Thought and Lucid Articulation of the Subject 👍👍

[@shankarnath]

Thank you. Glad you liked the presentation

[@mohan7642]

Excellent content Mr.Shankar. Very creative and really I got to know and learn so much. Hope your friends who owe you money are not seeing this video 😆😆. I was always puzzled the HDFC has given multi bagger to its investors over past 2 decades, this video justifies. One other reason why PSU's cant do as well as their counterparts they are spread out their branches in rural, semi urban. Your views on this ?

[@shankarnath]

Thank you very much

[@rashiddilshaan]

Good information about banks and banking industry. My surprise is IDFC First bank is not considered for comparison .

[@shankarnath]

Thanks

[@shubhammadhesiya1134]

Your voice is very good to listen carefully

[@shankarnath]

Thank you very much

[@channabasavas.u]

Sir please do a video on transport sector..

[@shankarnath]

Thanks for the suggestion

[@adityakapoor001]

@shankarnath Excellent content. While the content is truly remarkable, I really enjoy your subtle humour and playfulness. It seems to me that you would have been that front bencher in class who is naughty but teacher is never able to catch you for your mischievous tricks

[@shankarnath]

Thank you. Yes, I was gifted with a sense of timing :)

[@Sawantg358]

Thanks sir please make video on chemical

[@shankarnath]

I'll try. Thx

[@avikghosh511]

Request to do an in depth analysis on telecom analysis. Other than arpu what other metrics should be tracked?

[@shankarnath]

Thanks for the suggestion

[@-vaibhav312]

Thank you for the explanation can you also do some video on paints industry and NBFCs One of the best KZbin channels so far… Following videos to learn more and more Very underrated may be just for now

[@shankarnath]

Most welcome

[@Superuk87]

What are your thoughts on IDFC First, what's their outlook looking like?

[@explorernikhilsetty]

Thank u sir for the video Kindly do video on nbfc also Is there ny threats to b. Finance / Nbfc From banks digital in many media showing B finance can't grow like earlier

[@shankarnath]

Most welcome

[@sivassssssss]

Thanks a lot for the wonderful metrics and insights..after seeing this revisited your quant mf video. Quite puzzled to see that pnb here in this video seem to be having weak performance as per metric but why quant mid cap has 7 percent at top there for pnb..these metrics must have been a key inputs for their model and still why pnb contribution is heavy in quant mid..your thoughts pl..

[@shankarnath]

Most welcome. Two points: 1. PNB from a bank strength perspective need not be close to looking at it from a valuation perspective. Price and value both matters & there are always gaps. I said it somewhere in this video aswell -- a "weak" bank but an even "weaker" price is not always a demerit 2. The PNB point you raised is a valid one and it was answered in the Quant video. I put forth a valuation versus behavioural animosity matrix that they use in their model. It's an interesting way to look at not just banks but all kinds of companies. If I can proffer a guess, they are probably looking at Adani in that same lens

[@sivassssssss]

@@shankarnath thank you so much shankar...very very useful ...attended your zoom call last week and it was very useful . Looking forward to such live sessions too

[@shankarnath]

Glad you liked it. It was without presentation slides so I was finding it a little difficult .. maybe I need to brush up on some story-telling. Ofcourse, practice helps.

[@kunalgavhane123]

I am following you & like all videos but only one humble request that plz make small videos around max 8~10 minutes

[@shankarnath]

I'll try. Thx for your suggestion

[@Calmtravel]

Hi Shankar What is your view on Idfc first bank?

[@sovanchakraborti2670]

Is idfc first bank a good one for future?

[@arifhussain94]

Superb analysis. Can you please make a video on how the share price moves with simple examples? What drives the share price& how bulk of block deals are placed?

[@shankarnath]

Thank you

[@arifhussain94]

@@shankarnath Can you please make a video on how the share price moves with simple examples? What drives the share price& how bulk of block deals are placed?