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

Name Market Cap (₹ Crore) Net Profit Margin (%) 5Y CAGR (%)
Indian Bank 72,820.92 13.11 64.27
Karur Vysya Bank Ltd 16,824.01 16.27 58.53
Jammu and Kashmir Bank Ltd 10,151.33 14.70 47.55
Bank of Maharashtra Ltd 35,598.55 17.32 39.89
Indian Overseas Bank 74,950.05 8.97 39.79

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.

IREDA Share Price in Focus: Loan Sanctions and Disbursements Rose in Jan-March 25 Quarter

On April 1, 2025, IREDA share prices fell over 1%, reaching a day low of 158.50 at 11:50 AM after opening at 160.25. The drop in IREDA share price came after the company released its business update for the January- March period on March 31.

Loan Sanctions Rose in Jan- Mar 2025

As per the exchange filing, IREDA posted a 27% growth in its loans sanctioned during the quarter to ₹47,453 crore against ₹37,354 crore that were sanctioned at the end of the same quarter last year. Loan disbursements also saw a 20% year-on-year rise, totaling ₹30,168 crore. The company’s outstanding loan book at the end of the quarter stood at ₹76,250 crore, reflecting a 28% growth from ₹59,968 crore in the corresponding quarter of the previous year.

IREDA Operational Update

On March 27, 2025, IREDA entered into a facility agreement and secured ¥26 billion through External Commercial Borrowing (ECB) from the Tokyo branch of the State Bank of India to support renewable energy projects in India. The agreement also includes a green shoe option of ¥10 billion. The loan will be unsecured and have a tenure of 5 years. Additionally, the company has approved a borrowing plan of ₹30,800 crore for the financial year 2026.

IREDA has raised ₹910.37 crore by issuing Privately Placed Subordinated Tier-II Bonds with a 10-year tenure and an annual coupon rate of 7.74%. The issuance of these Tier-II Bonds is aimed at leveraging current market liquidity to support the company’s borrowing plan. The funds raised will boost IREDA’s Tier-II capital, enhance its net worth, and improve its Capital to Risk-Weighted Assets Ratio (CRAR), thereby strengthening its capacity to finance the country’s clean energy transition.

 

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.

FINNIFTY Drop ~2% on April 1: SBI Card and Bajaj Finserv Were Top Losers on Index

On April 1, 2025, the Nifty Financial Services Index (FINNIFTY) was down ~2% to 24,616.75 at 11:20 AM. The Nifty Finance Index comprises 20 stocks that are listed on the National Stock Exchange (NSE). The private sector banks constitute ~69.58% of the FINNIFTY, while 6.93% is comprised of the public sector banks

The Nifty Financial Services Index mirrors the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies.

Top Gainers and Losers on FINNIFTY

On April 1, 2025, HDFC Life, ICICI Prudential Life and Jio Financial Services were the top gainers, while SBI Card, Cholamandalam Financial Services, and Bajaj Finserv were the top losers.

FINNIFTY Outpaced Nifty 50

In the past 1 year, FINNIFTY has delivered a return of 6.2% while Nifty 50 generated a return of ~0.9 %. The Nifty Financial Services Index has outperformed the Nifty 50 Index in 10 out of the last 17 calendar years and outperformed the Nifty Bank Index in 11 out of the last 17 calendar years from 2004 onward. The Nifty Financial Services Index has generally underperformed the Nifty 50 Index in years of global turmoil.

 

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.

UPS implementation from April 1: What Should Employees Do Next?

On April 1, 2025, the Unified Pension Scheme (UPS) will be launched under the National Pension System (NPS), offering central government employees a robust post-retirement financial security plan. With guaranteed pension benefits, government contributions, and investment flexibility, UPS is designed to provide comprehensive financial support to employees after their retirement.

Key Features of Unified Pension Scheme

Guaranteed Pension Based on Service Tenure

The UPS ensures that the pension payout is linked to the number of years an employee has served. Employees with 25 years or more of service will be eligible to receive 50% of their last 12 months’ average basic salary as a pension.

For employees who have served between 10 and 25 years, they will receive a proportionate pension, ensuring that a longer tenure results in a higher pension amount.

Additionally, employees with at least 10 years of qualifying service will be guaranteed a minimum pension of ₹10,000 per month.

Government Contributions and Investment Flexibility

Under the UPS, employees will contribute 10% of their basic salary plus dearness allowance (DA). The government will match this contribution, resulting in a combined investment of 20%. The contributions will be invested in default government-prescribed schemes. However, employees can opt to invest with private pension fund managers (PFMs) for greater flexibility.

An additional 8.5% contribution will be invested into a common pool corpus, managed by selected fund managers based on their performance.

Inflation Protection with DA Adjustments

One of the key benefits of the UPS is its link to DA, ensuring that pension payouts will increase over time, thereby helping retirees keep up with inflation. Unlike traditional pension plans where fixed payouts diminish over time, the UPS ensures that retirees’ purchasing power remains protected.

Financial Security for Spouses and Survivors

The UPS provides ongoing financial support for the spouse of the pensioner. In the event of the retiree’s death, the spouse will receive 60% of the pension amount, offering continued financial security for loved ones.

How Will Pension Withdrawals Work?

Once an employee retires, the pension will be drawn from their accumulated corpus, similar to a systematic withdrawal plan (SWP) used in mutual funds. This allows retirees to receive regular payouts while their remaining funds continue to grow. If the accumulated corpus is depleted before the retiree or their spouse passes away, the government-managed common pool will continue to provide pension payments.

Currently, the UPS is available only to central government employees. State governments will need to decide individually whether to implement the scheme for their employees. Many states are expected to evaluate the benefits of the UPS before making a decision.

While UPS offers several benefits, there are a few challenges to note. Annuity service providers (ASPs) will not be part of the new system, which could affect their role in pension fund management. Additionally, the investment strategy for the additional 8.5% common pool fund has not yet been finalized, and further details are expected to be provided by the government in the coming months.

Next Step for Employees

Eligible employees can begin enrolling in the UPS starting April 1, 2025, through the Protean CRA portal (npscra.nsdl.co.in). They also have the option to submit physical forms if preferred.

As UPS is set to provide a more structured and secure pension system for central government employees, employees need to understand the details of the scheme and take the necessary steps to enroll when the time comes.

 

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

Can Gold Price Touch ₹1 Lakh in FY26: Rose 32% in FY25

Investment in gold has been remarkable for investors in FY 2024-2025. As per the date available on MCX, Indian spot gold prices rose ~32% in FY25, outperforming the Nifty 50 equity index, which soared just over 5%.

On March 28, 2024, gold prices were around ₹67,000 per 10 grams, but they have since surged to nearly ₹88,700. In the derivatives market, MCX Gold closed 0.05% higher at ₹88,850 per 10 grams on March 28.

In the International market, gold prices are also at an all-time high, backed by the rising demand for safe-haven assets and concerns over the global trade war triggered by U.S. President Donald Trump’s aggressive tariff policies.

Why Gold Prices Increased in FY25?

Over the past years, several factors combined to push gold prices higher, including expectations of interest rate cuts by the U.S. Federal Reserve, strong buying by central banks, fluctuating macroeconomic conditions, and geopolitical uncertainties.

Trump’s tariff policies have heightened fears of a major trade war, which in turn has increased inflation risks and disrupted global growth momentum. These factors have led to a surge in demand for gold, which is seen as a hedge against inflation and uncertainty.

Could Gold Prices Reach ₹1 Lakh in FY26?

The main factors supporting gold prices, such as global uncertainty and central bank purchases, may fuel growth in domestic gold prices, which could reach the ₹1 lakh per 10 grams mark in FY26.

Inflation concerns and the potential for economic slowdown may continue to push investors towards gold as a safe-haven asset. However, many of these factors are already reflected in current gold prices, and fresh catalysts will be needed to push prices to ₹1 lakh.

Without new triggers, gold prices may consolidate at higher levels due to demand fatigue and profit-taking. Furthermore, a rebound in stock markets or the strength of the dollar could pose challenges to gold prices.

Conclusion

While short-term corrections may occur, the long-term outlook for gold remains positive, driven by ongoing global economic uncertainties, inflationary pressures, and central bank policies, which are likely to sustain investor demand for the precious metal in FY26.

 

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

DA Hike of 2%: How Much Will Salary and Pension Increase?

On Friday, March 28, the Union Cabinet, led by Prime Minister Narendra Modi, approved an additional installment of dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners, effective January 1, 2025. This decision is expected to benefit 1.15 crore central government employees and pensioners.

Ashwini Vaishnaw, the Minister of Information and Broadcasting, confirmed after the meeting that the Cabinet approved the release of this additional DA and DR, marking a 2% increase from the current rate of 53% of basic pay/pension to counter rising prices. With this adjustment, DA will rise from 53% to 55%, offering employees a salary boost ahead of the forthcoming 8th Pay Commission. The 8th Pay Commission, approved by the Centre in January, revised the wages and allowances for central government employees.

Previous Hike in DA

Previously, the DA had been increased by 3% in October and 4% in March 2024. The total annual financial impact of both the DA and DR hikes on the government’s budget will be ₹6,614.04 crore. This decision will benefit 48.66 lakh central government employees and 66.55 lakh pensioners.

The increase follows the formula established by the 7th Pay Commission, designed to adjust for the cost of living and safeguard employees and pensioners against inflation.

Impact on Salary and Pension

Under the 7th Pay Commission, the minimum basic salary for a central government employee is ₹18,000. With the 2% increase in Dearness Allowance (DA), employees will receive an additional ₹360 per month, which means the arrears for the period from January to March 2025 will total ₹1,080.

For pensioners receiving the minimum basic pension of ₹9,000, the arrears will amount to ₹540, which will be paid along with their pension in April 2025.

 

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

NSE IPO: Exchange Submitted Application to Receive NOC from SEBI

The newly appointed SEBI Chairman, Tuhin Kanta Pandey, following his first board meeting at SEBI, stated that the regulator would review the issues surrounding the NSE’s IPO and assess how the process could move forward. His remarks prompted the National Stock Exchange (NSE) to resume the IPO process.

According to reports, NSE has submitted an application to SEBI requesting a No Objection Certificate (NOC) for its IPO. This certificate is a crucial document needed before NSE can file the Draft Red Herring Prospectus (DRHP) for the IPO.

This isn’t the first time NSE has applied for SEBI’s NOC. The exchange made similar requests in 2019, twice in 2020, and again in 2024.

In previous instances, SEBI had set specific conditions before considering the NOC request. These included raising the salaries of key management personnel (KMPs) and reducing NSE’s stake in its clearing subsidiary, NSE Clearing, from 100% to less than a majority. SEBI had also required NSE to address technical issues it faced and to resolve the legal cases related to the co-location controversy.

In its latest application to SEBI, NSE has provided detailed responses to the requirements that were raised in the previous round.

 

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

RailTel Declared 2nd Interim Dividend: Set April 02 as Record Date

The state-owned power telecom and networking services company RailTel Ltd has set April 02, 2025, as the record date for its 2nd interim dividend for FY25. On March 12, 2025, RailTel declared an interim dividend of ₹1 per share, which will be paid on April 9, 2025.

RailTel Interim Dividend Record Date: What This Mean For Shareholders?

As RailTel Ltd. has set April 02 as the record date for its interim dividend, April 01 marks the last day to buy RailTel shares to become eligible for the dividend. Further, any shares bought on or after April 02 (the record date) won’t be eligible for the interim dividend.

Strengthening Order Book

The order book of RailTel has strengthened, which is supported by key orders secured by the company:

  • On March 29, 2025, RailTel Corporation of India Ltd received the work order from Ircon International Limited for Works amounting to ₹162,58,96,785
  • The company has secured a work order from Hindustan Petroleum Corporation Limited for an amounting to ₹25,15,24,500.
  • RailTel has received the work order from the Ministry of Defence for OFC Laying Work amounting to ₹16,89,38,002

 

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

PM Internship Scheme Round 2: March 31 is the Last Day to Apply

If you are a young job seeker and looking to start your career in private organisations, then PM Internship Scheme (PMIS) could be a better start. However, you need to hurry as the deadline to register for PMIS round 2 is March 31, 2025. 

After receiving an overwhelming response of over 6 lakh applications in Round 1, Round 2 offers more than 1 lakh internship opportunities across 730+ districts in India, serving as a valuable link between academic education and industry requirements. 

How to Apply for the PM Internship?

Follow these steps to apply for Phase 2 of the PM Internship Programme:

Step 1: Visit the Official Website, pminternship.mca.gov.in.

Step 2: Click on the registration option on the homepage.

Step 3: Enter a valid phone number and authenticate it with the OTP sent to your device.

Step 4: Provide personal information, educational qualifications, and internship preferences.

Step 5: Attach the necessary documents and submit your application.

Step 6: Keep a copy of the confirmation page for future reference.

How to Apply Using the PMIS App?

Step 1: Download the PMIS App – Get it from the official website or the Google Play Store.

Step 2: Register easily – Sign up using Aadhaar-based face authentication.

Step 3: Explore Internships – Browse available opportunities across various sectors.

Step 4: Apply Seamlessly – Submit your application directly through the app.

 

 

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.

Mahila Samman Savings Scheme: March 31 Marks the Last Day to Apply

Launched on April 1, 2023, the Mahila Samman Savings Scheme (MSSS) is a government-supported small savings initiative aimed specifically at women and girls. MSSS offers a fixed 2-year tenure.

The scheme was introduced to strengthen financial inclusion and encourage women to securely save and grow their wealth. The deadline for investing in the Mahila Samman Savings Scheme is March 31, 2025. As this is a limited-time scheme, no new investments will be accepted after the deadline.

How to Invest in Mahila Samman Savings Scheme?

The MSSS investment process is entirely offline. Interested individuals must visit a post office or select banks to open an account.

The following steps are required:

  1. Fill out the Mahila Samman Savings Certificate application form.
  2. Submit Know Your Customer (KYC) documents, including Aadhaar and PAN.
  3. Provide the deposit amount in cash or cheque.
  4. Receive the certificate as proof of investment.

What are the Key Features of MSSS?

  • Interest Rate: 7.5% per annum, compounded quarterly
  • Tenure: 2 years
  • Deposit Limit: Minimum ₹1,000, Maximum ₹2 lakh
  • Eligibility: Women aged 18 and above or guardians for minor girls
  • Withdrawal Option: 40% partial withdrawal allowed after one year
  • Security: Government-backed with guaranteed returns
  • Tax Treatment: Interest earned is taxable, but no tax is deducted at the source (TDS)

How to Withdraw Amount from MSSS?

The Department of Posts has recently introduced a 40% early withdrawal option, allowing account holders to access a portion of their funds before maturity.

The process includes:

  1. Visiting the post office where the MSSS account is held.
  2. Submitting a withdrawal request form along with valid identification.
  3. The Finacle system processing the request and calculates the correct interest.
  4. The withdrawn amount being credited to the linked bank account.

 

 

 

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.