RBL Bank vs Yes Bank Which Is a Smarter Choice?

RBL Bank and Yes Bank are two prominent players in the Indian banking sector, both offering a range of financial products and services to customers. While RBL Bank has been known for its strong growth and expansion strategy, Yes Bank has faced challenges in recent years due to corporate governance issues and non-performing assets. Investors are closely watching the performance of both banks as they navigate through a changing economic landscape and regulatory environment.

RBL Bank or Yes Bank?

When comparing RBL 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 RBL 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. RBL Bank has a dividend yield of 0.87%, while Yes Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. RBL 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 RBL Bank P/E ratio at 8.82 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. RBL Bank P/B ratio is 0.68 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, RBL Bank has seen a 5-year revenue growth of 1.76%, while Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with RBL Bank's ROE at 8.00% 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 ₹169.20 for RBL Bank and ₹20.70 for Yes Bank. Over the past year, RBL Bank's prices ranged from ₹147.50 to ₹300.70, with a yearly change of 103.86%. 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.