Best stocks to buy today under 100 rs – 2025

1. IDBI Bank Ltd.

Pros for Investors:

Imminent Privatization: The government and LIC are actively pursuing a strategic disinvestment of their combined 61% stake, with a target to conclude by end-2025. This privatization is expected to inject private sector efficiency, improve governance, and potentially lead to a significant re-rating of the stock.

Strong Financial Turnaround: IDBI Bank has demonstrated a remarkable recovery in its financial health. It has exited the RBI’s PCA framework and reported robust Q4 FY25 results, with a 26% year-on-year increase in net profit and a substantial improvement in asset quality (Gross NPA at 2.98% and Net NPA at 0.15% as of March 31, 2025).

Cons for Investors:

Uncertainty in Privatization Timeline: While the disinvestment is progressing, large-scale government stake sales can face unforeseen delays due to complex regulatory approvals, market conditions, or challenges in finding suitable bidders. This uncertainty can keep the stock price volatile.

Competitive Banking Landscape: Despite its improvements, IDBI Bank operates in a highly competitive Indian banking sector, dominated by large private and public sector banks. Sustaining rapid growth and expanding market share in such an environment will be a continuous challenge.

2. Indian Overseas Bank.

Pros for Investors:

Improving Asset Quality and Profitability: IOB has shown a significant reduction in its Non-Performing Assets (NPAs) and has consistently reported good profit growth in recent quarters. Its Q4 FY25 results indicate a strong improvement in both gross and net NPAs, along with a healthy increase in net profit year-on-year. This financial turnaround makes it a more attractive prospect.

Public Sector Bank (PSB) Strength: As a government-owned bank, IOB benefits from inherent stability and implicit government backing, which can be a comfort for investors, especially during economic uncertainties. PSBs are also often instrumental in government-led financial inclusion and credit initiatives.

Cons for Investors:

Valuation Concerns: Despite its improved performance, some analyses suggest that IOB’s valuation might be relatively high, potentially making it “overvalued” compared to its fundamentals. This could limit significant upside potential in the short to medium term.

Competition and Growth Pace: The Indian banking sector is intensely competitive. While IOB is improving, it still faces stiff competition from larger, more agile private sector banks and other well-established public sector banks. Its ability to capture significant market share and achieve aggressive growth may be challenging in this environment.

3. IDFC First Bank Ltd.

Pros for Investors:

Strong Retail Focus & Growth: IDFC First Bank has successfully transitioned into a granular retail-focused bank, with customer deposits growing significantly (25.2% YoY for FY25) and retail deposits constituting a large portion (79%) of total deposits. This strong retail franchise provides stable and low-cost funding, which is crucial for profitability.

Improving Asset Quality (Ex-Microfinance): While the bank’s recent Q4 FY25 net profit was impacted by higher provisions primarily due to issues in the microfinance segment, its asset quality across the retail, rural, and MSME portfolios (excluding microfinance) has shown improvement. The bank is also strategically reducing its exposure to microfinance and legacy infrastructure loans, which bodes well for overall asset quality stability.

Cons for Investors:

Recent Profitability Headwinds (Microfinance Impact): IDFC First Bank reported a sharp decline in net profit in Q4 FY25 (down 48.4% YoY) and for the full FY25, largely due to elevated provisions stemming from challenges in its microfinance portfolio. This indicates a segment-specific risk that can significantly impact overall profitability.

Increased Provisions and Credit Costs: The bank’s provisions for bad loans jumped significantly in Q4 FY25, leading to higher credit costs for the full year. While some of this is attributed to a prudent approach to the microfinance book, sustained high provisions can dampen future earnings growth.

4. Bank of Maharashtra.

Pros for Investors:

Strong Profitability and Asset Quality Improvement: Bank of Maharashtra has consistently delivered impressive financial results, including a significant 36% year-on-year increase in net profit for Q4 FY25. The bank has also shown excellent asset quality improvement, with Gross NPAs declining to 1.74% and Net NPAs to 0.18% as of March 31, 2025, which is among the best in the public sector banking space.

Robust Growth in Advances and Deposits: The bank has demonstrated strong business growth, with total business increasing by 15.30% YoY for FY25. Notably, its total deposits grew by 13.44% and gross advances by 17.76%, indicating healthy credit demand and deposit mobilization, particularly in the retail, agriculture, and MSME (RAM) segments.

Cons for Investors:

Intense Competition in PSB Space: While Bank of Maharashtra has performed well, it operates in a highly competitive public sector banking landscape. Despite its strong numbers, it faces continuous pressure from larger and more established PSBs and private banks to maintain its growth momentum and market share.

Staffing and Operational Challenges (Reported): While not directly financial, some reports highlight potential operational challenges related to staffing shortages and increased workload for employees. While the bank’s financial performance is strong, such internal pressures could, in the long term, impact service quality or efficiency if not adequately addressed.

5. UCO Bank

Pros for Investors:

Significant Improvement in Asset Quality and Profitability: UCO Bank has demonstrated a strong turnaround, with its Gross Non-Performing Assets (NPA) falling significantly to 2.69% and Net NPA to 0.50% as of March 31, 2025. This improvement in asset quality has contributed to a healthy 24% year-on-year increase in net profit for Q4 FY25, indicating a more stable and profitable banking operation.

Strong Business Growth and Capital Raising Plans: The bank has reported robust growth in both gross advances (up 17.7% YoY) and deposits (up 11.6% YoY) for FY25, particularly in its Retail, Agriculture, and MSME (RAM) segments. Furthermore, the bank’s board has approved an equity capital raising plan to dilute the government’s holding to 75%, which could enhance public float and potentially attract more institutional investment.

Cons for Investors:

Government Shareholding and Operational Autonomy: While a public sector bank’s government backing provides stability, a high government shareholding (currently around 91%, with plans to reduce to 75%) can sometimes limit operational autonomy and efficiency compared to private sector counterparts. Strategic decisions might be influenced by government policies rather than purely commercial considerations.

Intense Competition and Market Share: UCO Bank operates in a highly competitive Indian banking sector. Despite its recent improvements, it is a relatively smaller player compared to leading public and private sector banks. Gaining substantial market share and differentiating itself effectively in this crowded market remains a continuous challenge.

6. Central Bank of India.

Pros for Investors:

Significant Profit and Asset Quality Improvement: Central Bank of India has shown a strong financial turnaround, with its net profit surging by 48.49% for FY2025 and 28.13% for Q4 FY25. More importantly, its asset quality has drastically improved, with Gross NPAs reducing to 3.18% and Net NPAs to 0.55% as of March 31, 2025. This indicates a much healthier balance sheet and reduced risk.

Strong Business Growth and Capital Adequacy: The bank’s total business crossed ₹7 lakh crore in FY2025, driven by a 15.24% growth in gross advances and a 7.19% rise in deposits. Its Capital Adequacy Ratio (CRAR) also strengthened to 17.02%, well above regulatory requirements, providing a solid buffer for future growth and resilience.

Cons for Investors:

High Government Holding & Potential for Future Dilution: The Government of India holds a very high stake (around 89.27% as of March 2025) in Central Bank of India. While this provides stability, it can limit operational flexibility and also means that future capital raising plans (such as the approved ₹5,000 crore fundraise) could lead to significant equity dilution, impacting existing shareholders.

Historical Underperformance and Public Sector Challenges: Central Bank of India has a history of underperformance and has faced significant challenges in the past, including being under the RBI’s Prompt Corrective Action (PCA) framework for an extended period. Despite recent improvements, the broader public sector banking space still faces challenges related to competition, technology adoption, and sometimes, slower decision-making processes compared to nimble private sector banks.

7. Jammu and Kashmir Bank Ltd.

Pros for Investors:

Improving Asset Quality and Record Annual Profit: J&K Bank has significantly improved its asset quality, with Gross Non-Performing Assets (GNPA) falling to 3.37% from 4.08% a year ago, and Net NPA at 0.79% as of March 31, 2025. Despite a slight dip in Q4 FY25 net profit due to higher provisions, the bank recorded its highest-ever annual net profit of ₹2,083 crore for FY25, indicating strong operational performance and a healthy balance sheet.

Strong Regional Dominance and Healthy CASA Ratio: The bank maintains a dominant position in Jammu & Kashmir and Ladakh, with a significant portion of its business originating from these regions. It also boasts a robust CASA (Current Account Savings Account) ratio of 47% at FY25-end, which provides a stable and low-cost funding base, a key advantage in the banking sector.

Cons for Investors:

Q4 FY25 Net Profit Decline due to Higher Provisions: While the annual profit was strong, the bank’s net profit for Q4 FY25 declined by 9% year-on-year. This was primarily due to higher provisioning requirements (₹58 crore in Q4 FY25 compared to a provision reversal in Q4 FY24), which could be a concern if such provisioning trends continue.

Geopolitical and Regional Sensitivity: Being primarily concentrated in the Jammu & Kashmir and Ladakh regions, the bank’s operations and performance can be more susceptible to geopolitical developments and regional economic conditions, which might introduce a higher degree of risk compared to banks with a more diversified geographical presence.

8. Ujjivan Small Finance Bank Ltd.

Pros for Investors:

Improving Asset Quality & Strategic Shift towards Secured Loans: Ujjivan SFB has shown consistent improvement in its asset quality, with Gross NPAs declining to 2.18% and Net NPAs to 0.49% by March 31, 2025. Crucially, the bank is strategically diversifying its loan book by increasing its focus on secured loans (now contributing 44% of the loan portfolio, up from 30% last year). This shift to secured lending is expected to lead to more stable asset quality and reduced credit costs in the long run.

Application for Universal Bank License: Ujjivan SFB has applied to the RBI to transition to a universal bank. If approved, this could significantly broaden its operational scope, product offerings, and customer base, potentially leading to higher growth opportunities and a re-rating of the stock.

Cons for Investors:

Recent Profitability Decline: The bank reported a substantial 74.7% year-on-year decline in net profit for Q4 FY25 and a 43% decline for the full FY25. This was primarily due to higher provisions for bad loans, particularly impacting its microfinance segment. While asset quality is improving overall, this sharp dip in profitability due to specific segment challenges indicates sensitivity to credit risk.

Competitive Landscape and Yield Compression: The small finance bank (SFB) sector is highly competitive. While Ujjivan SFB is diversifying, it still operates in a niche where competition from other SFBs, larger public and private banks, and even NBFCs is intense. This competitive pressure can lead to yield compression and impact Net Interest Margins (NIMs), which for Ujjivan SFB declined by 25 basis points to 8.8% for FY25.