IDBI Bank vs Yes Bank Which Performs Better?

IDBI Bank and Yes Bank are two prominent players in the Indian banking sector. IDBI Bank, previously a public sector bank, underwent a significant restructuring process and is now majority-owned by LIC. Yes Bank, on the other hand, faced a crisis in 2020 but has since shown signs of recovery under new leadership. Both banks have experienced fluctuations in their stock prices due to various factors, making them interesting options for investors looking to capitalize on potential growth opportunities in the banking industry.

IDBI Bank or Yes Bank?

When comparing IDBI Bank and Yes 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 IDBI Bank and Yes 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. IDBI Bank has a dividend yield of 1.84%, while Yes Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IDBI Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Yes 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 IDBI Bank P/E ratio at 12.94 and Yes Bank's P/E ratio at 37.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IDBI Bank P/B ratio is 1.60 while Yes Bank's P/B ratio is 1.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IDBI Bank has seen a 5-year revenue growth of 0.50%, while Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDBI Bank's ROE at 12.93% and Yes Bank's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹79.80 for IDBI Bank and ₹20.70 for Yes Bank. Over the past year, IDBI Bank's prices ranged from ₹63.40 to ₹107.90, with a yearly change of 70.19%. Yes Bank's prices fluctuated between ₹19.02 and ₹32.85, with a yearly change of 72.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.