Multibagger Bank stocks with increasing Net Interest Margins over 3 years to add to your watchlist

Net Interest Margin (NIM) is a profitability indicator that approximates the likelihood of a bank or investment firm thriving over the long haul. In simple terms, it is the difference between the net interest income generated by a bank (from loans and mortgages) and the outgoing interest that it pays to account holders (savings bank account, fixed deposits), expressed as a percentage. 

Here are a few multibagger banking stocks with an increasing net profit margin over a period of three financial years: 

UCO Bank 

UCO Bank is engaged in providing a range of banking and financial services including retail banking, corporate banking and treasury operations. 

The company reported a net interest margin of 2.16 per cent in March 2021, 2.41 per cent in March 2022 and 2.44 per cent in March 2023. Its share price increased by 231 per cent in the past year, from ₹ 12.10 apiece to ₹ 43.45.

Bank of Maharashtra 

Bank of Maharashtra provides banking services including treasury, corporate/wholesale banking, retail banking and other banking operations. 

The company reported a net interest margin of 2.48 per cent in March 2021, 2.61 per cent in March 2022 and 2.89 per cent in March 2023. Its share price increased by 141.5 per cent in the past year, from ₹ 18.55 apiece to ₹ 46.50. 

Central Bank of India 

Central Bank of India is a commercial bank. Its segments include treasury operations, corporate/wholesale banking, retail banking and other banking business. 

The company reported a net interest margin of 2.23 per cent in March 2021, 2.46 per cent in March 2022 and 2.88 per cent in March 2023. Its share price increased by 129.5 per cent in the past year, from ₹ 20.35 apiece to ₹ 48.80. 

Union Bank of India 

Union Bank of India is engaged in the business of banking services, government business, merchant banking, agency business insurance, mutual funds, wealth management and so on.

The company reported a net interest margin of 2.32 per cent in March 2021, 2.34 per cent in March 2022 and 2.57 per cent in March 2023. Its share price increased by 108 per cent in the past year, from ₹ 46.25 apiece to ₹ 98.65. 

Written by Simran Bafna 

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