Bandhan Bank vs ICICI Bank Which Is More Lucrative?

Bandhan Bank and ICICI Bank are two prominent players in the Indian banking sector, each with their own unique strengths and challenges. Bandhan Bank, a relatively new player in the market, has shown strong growth potential and a focus on microfinance and small-scale lending. On the other hand, ICICI Bank is a well-established institution with a diversified portfolio and a strong presence in the retail banking segment. Investors looking to invest in the banking sector need to carefully analyze the performance and growth prospects of both these banks before making a decision.

Bandhan Bank or ICICI Bank?

When comparing Bandhan Bank and ICICI 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 ICICI 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 ICICI Bank has a dividend yield of 0.01%. 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, ICICI Bank reports a 5-year dividend growth of 0.00% 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 ICICI Bank's P/E ratio at 18.82. 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 ICICI Bank's P/B ratio is 3.18.

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 ICICI Bank's is 1.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.61% and ICICI Bank's ROE at 18.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹174.21 for Bandhan Bank and $29.75 for ICICI Bank. Over the past year, Bandhan Bank's prices ranged from ₹167.30 to ₹263.10, with a yearly change of 57.26%. ICICI Bank's prices fluctuated between $22.02 and $31.60, with a yearly change of 43.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.