Banking Stocks to Invest - ICICI Bank & HDFC Bank

In my earlier post, I had mentioned the hot sectors to invest. Among them, Banking sector was the top performing sector in Indian stock market. Naturally one would like to know which individual stocks to invest in banking sector.


Here my picks are ICICI bank (ICICIBANK.NS) and HDFC Bank (HDFCBANK.NS) are my one & two picks. Given the recent correction, the price of ICICI Bank & HDFC Bank has fallen a bit - making it an ideal time to invest.

The two year history for both the stocks show that these two stocks have performed equally well. Among the two, ICICI Bank is poised for a rapid growth into Indian rural banking segment, while HDFC will concentrate on urban areas. ICICI bank’s global expansion will also enable it to tap into another very profitable segment - NRI remittances. ICICI offers a lower cost of fund transfer to India from abroad when compared to Western Union. ICICI now has branches in USA, UK, Russia, Singapore, Hong Kong, Canada, Dubai, South Africa - in all 17 countries.

As Indian economy continues to grow at a healthy pace, Banking sector will do well - and so will the investors in this sectors.