Not in the film, no way.
He wanted to keep beating Milky after Combo had already almost killed him!

'all day we've had to sit and listen to this, we want out b!tch).
Um, no. He says:
"I want some of this. We want our bit."
i.e. he wanted a piece of the action. That's what prompts Combo to bottle him. Banjo was a vile thug in the movie. I haven't seen the TV series, but by all accounts, I've heard his character was butchered into some kind of lovable oaf.

Exactly.. Although Shaun was much younger he was angry enough to get in the way of the attack on Milky. He wasn't protecting Shaun, he was keeping him out of the way so that the attack could carry on.

He was holding Shaun because he didn't want Shaun interferring with the beating.

No, Banjo was the most despicable character in the entire film against which we could measure Combo's redeeming qualities which is why This Is England 86 feels like such an utter betrayal of the film.
The Dude Abides

He was a fcking nazi, no he wasnt a good guy. Plus if he would have been he should have stopped Combo when he started beating Milky.