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The stocks of two Indian banks - the Punjab & Sind Bank and the Jammu and Kashmir Bank Ltd - occupied the top two spots among 15 banks in the Asia Pacific region in terms of returns in the quarter ended December 31, 2022, said S&P Global Market Intelligence.

In a research report, S&P Global said Indian banks posted some of the best total stock returns among their Asia-Pacific peers for the second consecutive quarter as they continued to benefit from solid financial metrics, a resurgent equities market, and growth prospects for the country's economy.

"Indian banks occupied 11 of the 15 slots in a list compiled by S&P Global Market Intelligence of Asia-Pacific bank stocks with the highest total returns in the quarter ended December 31, 2022," the report said.

According to the report, the Punjab & Sind Bank had posted a returns of 118 per cent while the Jammu and Kashmir Bank gave 104.69 per cent.

Apart from Indian banks, three banks from mainland China and one from Japan made it to the list of top performers in the fourth quarter of 2022.

The stock performance of Indian banks has been broad-based, with both small and big lenders posting positive total returns, the report notes.

Indian banks have benefited from a pickup in credit growth and improving asset quality as the country's economy continues to consolidate a recovery. The results of a recent Reserve Bank of India stress test show that Indian banks are well capitalised, capable of absorbing shocks and would comply with minimum capital requirements even under adverse stress scenarios, S&P Global said.