INVESTMENT VALUATION AND PORTFOLIO ANALYSIS OF SELECTED BANKING COMPANIES IN INDIA

Abstract

The banking industry has been the most rewarding to invest in. The fact that many banks report double-digit returns on equity makes it one of the most profitable sectors as well. The stocks of banks can be a wonderful method to diversify the portfolio because of their significant economic impact. The industry is one of the safest and most reliable to invest in. For a very long time, it has been a significant component of the Indian economy, and it will probably remain so for a very long time. In the Indian banking industry, there are many promising stocks, but not all of them make for excellent investments. In India, the banking industry has changed substantially throughout time. Before private sector and new generation banks were granted to enter and compete with them, public sector banks predominated this sector. The Indian Banking sector has experienced remarkable growth and It has actually had the world’s fastest growth. Several elements contributed to the expansion of the Indian banking industry. The most significant factor is that Indian banks may now compete with major global financial organisations. This is due to the fact that many of the banks have improved since they were privatised in 1991 in terms of efficiency and streamlining. The rising demand for loans from both enterprises and individuals is another factor contributing to the success of Indian banks. Both economic expansion and the low interest rates that banks charge on their loans are accountable for this. Investors' active search for strong stocks to invest in at the present is not unexpected given that it seems like everyone wants to buy some great stocks before they rise even higher than they already have. Based on all these facts, this study made an attempt to study the significant of Investment valuation and portfolio analysis in Banking sector.