Bandhan Bank vs Indian Bank Which Is More Lucrative?

Bandhan Bank and Indian Bank are two prominent banking institutions in India with distinct characteristics and performances in the stock market. Bandhan Bank, known for its focus on microfinance and serving underbanked populations, has shown significant growth since its inception. On the other hand, Indian Bank, a public sector bank, has a long-standing history and a wider reach across the country. Investors looking to diversify their portfolio may find opportunities in both stocks with their unique positions in the market.

Bandhan Bank or Indian Bank?

When comparing Bandhan Bank and Indian 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 Indian 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 Indian Bank has a dividend yield of 2.12%. 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, Indian 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 Indian Bank's P/E ratio at 7.73. 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 Indian Bank's P/B ratio is 1.15.

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 Indian Bank's is 2.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.61% and Indian Bank's ROE at 16.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹174.21 for Bandhan Bank and ₹550.05 for Indian Bank. Over the past year, Bandhan Bank's prices ranged from ₹167.30 to ₹263.10, with a yearly change of 57.26%. Indian Bank's prices fluctuated between ₹390.90 and ₹632.70, with a yearly change of 61.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.