ICICI Bank to SBI: Top-performing banking stocks of 2024

Some banking stocks have been standout performers in 2024, delivering exceptional returns compared to their benchmarks. Let us discuss some of these stocks. Among the top gainers in the Nifty Bank universe are Federal Bank, ICICI Bank, and State Bank of India (SBI).

While stock price performance is the primary benchmark for our top picks, we will also examine their latest quarterly financial results to get a comprehensive picture of their performance.

ICICI Bank: Sustained growth and efficiency

ICICI Bank stock performance was no different from Federal Bank's, with both significantly outperforming their counterparts. As of December 23, ICICI Bank recorded a YTD return of 30.12%.

The profit after tax (PAT) stood at ₹11,746 crores in Q2FY25, marking a 14.5% YoY growth. The ROE was 18.1%, while the return on average assets (ROAA) stood at 2.38%.

The NII stood at ₹20,048 crores (+9.5% YoY) with a strong NIM of 4.27%. Alongside profitability, the asset quality was impressive, with NPA at 0.42% and a PCR of 78.5%.

Domestic loans grew at 15.7% YoY, with the business banking portfolio expanding by an impressive 30%. The retail loan book is considered more stable and has grown by 14.2%. Deposits increased 15.7% YoY to ₹14,977 crore, supported by a CASA ratio of 38.9% (Q2FY24 - 40.8%).

Operational efficiency remained strong, with a cost-to-income ratio of 39.1%, while the credit cost (a measure of provisioning expenses against advances) stood at 0.41%.

Federal Bank: Strong profitability and credit growth

Federal Bank stock performance has been among the top-performing banks in the NIFTY Bank universe. As of December 23, 2024, the stock had delivered a return of 26.17%.

Federal Bank achieved a standalone net profit of ₹1,057 crore (its highest-ever quarterly profit) in Q2FY25, reflecting an 11% YoY increase. Its operating profit reached ₹1,565 crore, showcasing robust growth. The ROA stood at 1.28%, and the ROE was 13.65%.

In addition to achieving its highest-ever quarterly net profit, the bank reported an all-time high net interest income (NII) of ₹2,367 crore, growing 15% YoY, with an NIM of 3.12%.

On the asset quality front, gross non-performing assets (GNPA) reduced to 2.09%, while net non-performing assets (NNPA) declined to 0.57%. The provision coverage ratio (PCR) improved to 71.82%, providing strong buffers against potential losses.

Credit growth was remarkable, with total advances increasing by 19% YoY. Key segments like the retail book grew by 22%, gold loans expanded by 31%, and the commercial vehicle/construction equipment portfolio surged by 44%.

Deposits reached ₹2,69,107 crore, supported by a 3.91% quarter-on-quarter growth in current account savings account (CASA) deposits.

State Bank of India (SBI): Dominance in scale and returns

SBI’s stock performance was impressive. As of Dec 23, it had a 27.90% return, outperforming the benchmark (NIFTY Bank), which had a return of 6.26% in 2024.

The net profit for Q2FY25 stood at ₹18,331 crore, showcasing its unmatched scale. In H1FY25, the ROA was 1.13%, while the ROE stood at 21.78%—the highest in the sector.

NII grew by 5.37% YoY to ₹41,620 crores, with a domestic NIM of 3.31%. Asset quality remained stable, with GNPA at 2.13% and NPA at 0.53%. The PCR stood at 75.66%.

Credit growth was robust, with total advances increasing by 14.93% YoY to ₹39.2 lakh crore. Retail personal loans grew by 12.32%, and deposits crossed ₹51 lakh crore, reflecting a 9.13% YoY growth.

SBI demonstrated effective cost management, with a cost-to-income ratio of 48.94% and a credit cost of 0.43%, underscoring its operational efficiency.

Federal Bank, ICICI Bank, and SBI have shown exceptional performance in 2024, both in stock price and financial metrics. Federal Bank’s record-breaking profitability and strong asset quality improvements, ICICI Bank’s operational efficiency and profitability, and SBI’s unmatched scale and returns make them the top-performing banking stocks of the year.

This article is only for educational purpose. We do not recommend any particular stock, securities and strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before trading and investing.