Bandhan Bank vs SBI Which Is More Profitable?

Bandhan Bank and State Bank of India (SBI) are two prominent banks in the Indian financial market, each with a unique set of strengths and challenges. Bandhan Bank, as a newer player, has shown rapid growth and profitability, especially in the microfinance sector. On the other hand, SBI has the advantage of being a well-established public sector bank with a wide network and diverse range of products and services. Investors interested in the banking sector may find it beneficial to compare the performance and potential of these two stocks to make informed investment decisions.

Bandhan Bank or SBI?

When comparing Bandhan Bank and SBI, 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 SBI.

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 0.88%, while SBI has a dividend yield of 4.45%. 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, SBI reports a 5-year dividend growth of -44.26% year and a payout ratio of 56.44%.

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 9.85 and SBI's P/E ratio at 13.24. 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 1.16 while SBI's P/B ratio is 0.88.

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 1.80%, while SBI's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.61% and SBI's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹170.02 for Bandhan Bank and $24.01 for SBI. Over the past year, Bandhan Bank's prices ranged from ₹162.80 to ₹263.10, with a yearly change of 61.61%. SBI's prices fluctuated between $19.00 and $27.02, with a yearly change of 42.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.