Best Banks in India for April 2025 – Based on 5Y CAGR

If you are a long-term investor, then investing in banking stocks can be a good choice to build wealth. Banks are an integral part of any economy, providing essential financial services such as loans, savings accounts, mortgages, and investment products. Banking stocks often attract both conservative investors looking for stable returns and more aggressive investors searching for growth opportunities. In this article, we will explore the best banking stocks for April 2025.

Best Banks in India for April 2025

Note: The above-mentioned banking stocks have been selected and sorted based on 5Y CAGR as of April 1, 2025

Overview of Best Banking Stocks

1. Indian Bank

Founded in 1907, Indian Bank is a medium-sized bank that offers deposits, loans and services. The Bank’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. During Q3FY25, the bank’s total business increased from ₹12.44 trillion to ₹12.61 trillion, reflecting a year-on-year growth of 8.33%. Deposits have risen from ₹6.93 trillion to ₹7.02 trillion, showing a YoY growth of 7.34%. We have successfully maintained a CASA share of 40%, with CASA growing by 3.70%.

Key Metrics

• ROE: 15.4%
• ROCE: 5.92%

2. Karur Vysya Bank Ltd

Karur Vysya Bank is engaged in providing a wide range of banking and financial services, including commercial banking and treasury operations. As of December 31, 2024, the bank’s total business stands at ₹181,993 crores. The bank successfully sustained the growth momentum established in the previous quarters, with its total business reporting a 3% increase. The advances stand at ₹82,838 crores, and deposits have risen to ₹99,155 crores, both reflecting a 3% growth. The loan book has grown by 14% year-on-year and 3% during the quarter.

Key Metrics

• ROE: 17.2%
• ROCE: 6.89%

3. Jammu & Kashmir Bank

Jammu & Kashmir Bank (J&K Bank) is engaged in providing a wide range of banking services, including Retail Banking, Corporate Bankin,g & Treasury Operations. The bank has performed reasonably well over the past two quarters in mobilising deposits, achieving a 9.7% year-on-year growth despite a decline in the first quarter. This is noteworthy, especially considering that historically, deposit growth has been stronger in the fourth quarter.

Key Metrics

• ROE: 16%
• ROCE: 5.90%

4. Bank of Maharashtra

Bank of Maharashtra is engaged in providing banking services. The Bank’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other banking operations. During Q3FY25, the total business of the bank stood at ₹5.07 lakh crore, reflecting a year-on-year growth of 17%. Advances, amounting to ₹2.29 lakh crore, have grown by 21%, while total deposits have reached ₹2.79 lakh crore, showing a 14% growth. Within this, CASA has also experienced strong growth of 16%, with an addition of ₹14,000 crore in absolute terms year on year.

Key Metrics

• ROE: 22.8%
• ROCE: 5.38%

4. Indian Overseas Bank

Indian Overseas Bank is engaged in providing banking services. In Q3 2024-25, CASA grew in absolute terms to ₹1.32 lakh crores, with a year-on-year growth rate of 9.45%. Total deposits reached ₹3.05 lakh crores as of 31st December 2024, reflecting a year-on-year growth of 9.74%. Gross advances increased by 9.93% year-on-year, standing at ₹2.38 lakh crores.

Key Metrics

• ROE: 9.98%
• ROCE: 5.41%

Conclusion

Investing in banking stocks can offer solid returns, but it comes with its own set of risks and considerations. Banks are typically stable and provide regular dividends, making them appealing to income-focused investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.