India’s banking sector has shown notable improvement, supported by steady credit growth, stronger profitability, and enhanced asset quality.
According to the Economic Survey 2024–25, the net non-performing assets (NPAs) of rural financial institutions declined from 3.2% in FY23 to 2.4% in FY24.
In this context, several Indian banks have demonstrated consistent performance. Here’s a look at listed bank stocks based on their 5-year Compound Annual Growth Rate (CAGR) as of May 2025.
| Name | Sub-Sector | Market Cap | PE Ratio | ↓5Y CAGR |
| Indian Bank | Public Banks | 77,652.47 | 7.06 | 65.42 |
| Karur Vysya Bank Ltd | Private Banks | 17,150.35 | 10.69 | 51.6 |
| Jammu and Kashmir Bank Ltd | Private Banks | 10,609.89 | 5.99 | 47.39 |
| Canara Bank Ltd | Public Banks | 88,130.45 | 5.77 | 43.51 |
| Bank of Maharashtra Ltd | Public Banks | 39,842.25 | 7.22 | 41.91 |
| Bank of Baroda Ltd | Public Banks | 1,28,834.15 | 6.86 | 41.45 |
| Indian Overseas Bank | Public Banks | 72,347.01 | 21.31 | 38.21 |
| Union Bank of India Ltd | Public Banks | 96,343.74 | 6.98 | 37.69 |
| South Indian Bank Ltd | Private Banks | 6,658.49 | 6.22 | 37.68 |
| Karnataka Bank Ltd | Private Banks | 7,366.36 | 5.64 | 36.65 |
Note: The above-mentioned banking stocks have been selected and sorted based on 5Y CAGR as of May 6, 2025
In Q4 FY25, Indian Bank’s profit before tax rose 38.17% to ₹4,224.07 crore, reflecting strong performance. The net interest income (NII) also increased by 6.2%, reaching ₹6,389 crore.
On the asset quality front, the bank’s gross NPAs improved, standing at ₹18,178.86 crore as of March 31, 2025, compared to ₹21,106.31 crore in the previous year.
ROCE: 13.67%
ROE: 15.33%
Karur Vysya Bank reported strong performance with robust advances and deposits growing in the mid-teens during Q4. The bank’s net NPAs remain impressively low at just 0.2%, highlighting its strong asset quality.
The bank also maintains a healthy position with SMA1+2 loans below 0.4% and less than 3% of its loans being unsecured, indicating its prudent lending practices.
ROCE: 12.65%
ROE: 17.23%
Jammu & Kashmir Bank reported an 8.47% decline in net profit, which stood at ₹584.54 crore in Q4 FY25, down from ₹638.67 crore in Q4 FY24.
On the asset quality front, the bank’s gross non-performing assets (NPAs) decreased to ₹3,604.84 crore as of 31 March 2025, compared to ₹3,956.19 crore as of 31 March 2024.
ROCE: 12.1%
ROE: 16.04%
Canara Bank is yet to report its Q4 figures. It reported a 12.25% YoY increase in profit after tax (PAT), reaching ₹4,104.20 crore in Q3 FY25, compared to ₹3,656.12 crore in the same period last year.
The bank also saw improvements in asset quality, with the Gross NPA ratio decreasing to 3.34% from 4.39% last year, and the Net NPA ratio improving to 0.89%.
ROCE: 8.98%
ROE: 17.76%
Bank of Maharashtra reported a standalone net profit of ₹1,493.08 crore in Q4 FY25, reflecting a growth of 22.61% compared to ₹1,217.67 crore in Q4 FY24.
On the asset quality front, the gross NPA declined to 1.74% as of 31 March 2025, down from 1.88% as of 31 March 2024, while the net NPA reduced to 0.18% from 0.20% in the same period.
ROCE: 15.63%
ROE: 22.84%
Read More: Top 10 Blue Chip Stocks in May 2025: Adani Enterprises, BEL, Trent and More- 5Yr CAGR Basis.
| Name | Market Cap | PE Ratio | ↓5Y CAGR | Net Profit Margin |
| Bank of Maharashtra Ltd | 39,842.25 | 7.22 | 41.91 | 19.44 |
| Karur Vysya Bank Ltd | 17,150.35 | 10.69 | 51.6 | 16.27 |
| Indian Bank | 77,652.47 | 7.06 | 65.42 | 15.26 |
| Jammu and Kashmir Bank Ltd | 10,609.89 | 5.99 | 47.39 | 14.7 |
| Karnataka Bank Ltd | 7,366.36 | 5.64 | 36.65 | 13.59 |
| Bank of Baroda Ltd | 1,28,834.15 | 6.86 | 41.45 | 13.24 |
| Union Bank of India Ltd | 96,343.74 | 6.98 | 37.69 | 11.67 |
| Canara Bank Ltd | 88,130.45 | 5.77 | 43.51 | 10.98 |
| South Indian Bank Ltd | 6,658.49 | 6.22 | 37.68 | 10.57 |
| Indian Overseas Bank | 72,347.01 | 21.31 | 38.21 | 10.06 |
Note: The above list of top bank stocks is ranked based on net profit margin as of May 6, 2025.
While these banks have exhibited robust financial health, it’s crucial for investors to carefully analyse each bank’s performance, growth potential, and risk profile. As always, thorough research and an understanding of market risks are essential when making investment decisions.
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.
Published on: May 6, 2025, 2:35 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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