Karnataka Bank, Dhanlaxmi Bank, Ujjivan Small Finance: Banking Stocks With 100% Returns

Investment in shares of banking companies can be a smart choice if you want to diversify your portfolio as Bank stocks are believed to offer long-term growth and steady dividend income. However, this is not true for all Banks and it is always recommended to check the financials, business fundamentals, dividend history, and future prospects of the companies you are investing in.

Before picking your banking stocks, it is advisable to carefully analyze the three most prevalent risks faced by Banks including cyclicality, loan losses, and interest rate risk.

In this article, we have brought you three banking stocks that have delivered over 100% returns in past one year. These stocks include Karnataka Bank, Dhanlaxmi Bank, and Ujjivan Small Finance Bank.

Karnataka Bank

Today, the share price of Karnataka Bank is seen trading 2.49% lower at Rs 243 per share at 1:20 pm IST. In the last one year the returns from the bank have increased almost 190%. The year-to-date (YTD) performance of Karnataka Bank is 57%. Karnataka Bank reported a net profit growth of 224.66% at Rs 370.70 crore in the first quarter of 2023-24, against a profit of Rs 114.18 crore in the corresponding period of 2022-23.

Dhanlaxmi Bank

Today, the share price of Dhanlaxmi Bank is seen trading 0.81% higher at Rs 32.52 per share at 1:22 pm IST. In the last one year the returns from the bank have increased almost 170%. The year-to-date (YTD) performance of Dhanlaxmi Bank is 61%.

Dhanlaxmi Bank reported a net profit of Rs 28.30 crore in the April-June quarter, compared to a net of Rs 26.43 crore in the year-ago period. The lender's interest income also rose to Rs 341.40 crore compared to Rs 236.82 crore in the same quarter a year ago.

Ujjivan Small Finance Bank

Today, the share price of Ujjivan Small Finance Bank is seen trading 3.49% lower at Rs 56.89 per share at 1:25 pm IST. In the last one year the returns from the bank have increased almost 145%. The year-to-date (YTD) performance of Ujjivan Small Finance Bank is 90%.

For the quarter ended June 2023, the Bank posted a 59.7% growth in its net profit to Rs 324.07 crore against Rs 202.94 crore in the same quarter last year. The bank's Net interest margin (NIM) for the quarter fell 40 bps to 9.2% from 9.6%, YoY.