Bandhan Bank vs HDFC Bank Which Is More Reliable?

Bandhan Bank and HDFC Bank are two prominent players in the Indian banking sector, each with its own strengths and weaknesses. Bandhan Bank, a relatively new player in the market, has shown rapid growth and expansion in recent years. On the other hand, HDFC Bank is a well-established and trusted name in the industry, known for its strong financial performance and customer-centric approach. Both stocks have their own merits and potential for investors looking to diversify their portfolio in the banking sector.

Bandhan Bank or HDFC Bank?

When comparing Bandhan Bank and HDFC Bank, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bandhan Bank and HDFC Bank.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bandhan Bank has a dividend yield of 1.71%, while HDFC Bank has a dividend yield of 0.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bandhan Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HDFC Bank reports a 5-year dividend growth of 6.32% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bandhan Bank P/E ratio at 10.12 and HDFC Bank's P/E ratio at 60.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bandhan Bank P/B ratio is 1.19 while HDFC Bank's P/B ratio is 8.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bandhan Bank has seen a 5-year revenue growth of 1.84%, while HDFC Bank's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.61% and HDFC Bank's ROE at 15.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹174.21 for Bandhan Bank and $64.12 for HDFC Bank. Over the past year, Bandhan Bank's prices ranged from ₹167.30 to ₹263.10, with a yearly change of 57.26%. HDFC Bank's prices fluctuated between $52.16 and $67.44, with a yearly change of 29.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.