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5 Banking Stocks That Are Good Buys For 2022
Banking stocks, especially the larger private banking names like ICICI Bank have been the darling of the markets for the last 1-year. However, there are some stocks that also do have the potential to rally from the current levels. Here are a set of 5 banking stocks that could be good bets for 2022.
Bank of Baroda
| Current market price - | Target price - | Potential upside |
|---|---|---|
| Rs 80 | Rs 130 | 64.00% |
India's leading research based brokerage house, Motilal Oswal has set a price target of Rs 130 on the stock of Bank of Baroda. That is a significant upside of nearly 64% on the stock from the current levels of Rs 80 of thereabouts.
As compared to some of its psu banking peers, Bank of Baroda is better placed to report good earnings. The stock has the potential to deliver and investors can use the declines in the markets to buy into the stock.
Indian Bank
| Current market price - | Target price - | Potential upside |
|---|---|---|
| Rs 861 | Rs 1400 | 62.00% |
This stock of Indian Bank has hit a 52-week high of Rs 194, which means the potential for an upside is significant as we have seen a fall in the price over the last few trading sessions. Like Bank of Baroda, a sharp recovery in the economy may lead to the bank reporting good numbers. In fact, a period of low interest rates and an economic rebound will suit most banking players. However, the only worry right now for the sector is a sharper than expected inflation data, which pushed the country's central bank to hike rates more aggressively.
IndusInd Bank
| Current market price - | Target price - | Potential upside |
|---|---|---|
| Rs 861 | Rs 1400 | 62.00% |
Motilal Oswal has set a target price of Rs 1400 on the stock of IndusInd Bank, which is a potential upside of nearly 62%. The bank was in the news recently for worries over "ever greening of loans", which the bank promptly denied.
We believe that the target price set by Motilal Oswal seems to be a little far fetched. The stock of IndusInd Bank has fallen sharply from 52-week highs, and a further downside near the Rs 800
levels could make the stock attractive to buy.
ICICI Bank
| Current market price - | Target price - | Potential upside |
|---|---|---|
| Rs 737 | Rs 1000 | 62.60% |
Motilal Oswal has placed a buy call on ICICI Bank with a price target of Rs 1,000. The ICICI Bank stock has been a favorite of the mutual fund managers, as banks are in a sweet spot, thanks to low interest rates and an uptick in the economy. However, with the possibility of an interest rate hike next year, things may not be as rosy as it seems. The stock has the potential to rally, but, would it go near the Rs 1,000 levels is hard to say.
Canara Bank
| Current market price - | Target price - | Potential upside |
|---|---|---|
| Rs 197 | Rs 270 | 37.00% |
Stocks like Canara Bank and Bank of Baroda are more attractive at the current levels, given the recent fall in their share price. These banks are going about clearing the NPA mess and a longer period of low interest rates, would surely benefit them. The recent merger with other PSU banks could also bear fruits in the coming years. Buy the stock of Canara Bank for a decent upside in the coming months.
