In India’s banking sector, comparisons between Yes Bank, SBI, and HDFC Bank often spark debate. While SBI is the country’s largest public-sector bank and HDFC Bank dominates the private sector, Yes Bank positions itself as a growing competitor. But can it truly measure up?
In this article, we’ll explore where Yes Bank compares itself with SBI and HDFC Bank, focusing on interest rates, financial performance, business models, and overall stability.
1. The Battle of Interest Rates
One of the primary ways Yes Bank tries to stand out is by offering competitive interest rates on fixed deposits (FDs). For many retail investors, FD rates are a key factor in deciding where to park their money.
Yes Bank: Offers interest rates ranging from 3.25% to 8% for general customers and 3.75% to 8.25% for senior citizens on FDs maturing in 7 days to 10 years.
HDFC Bank: Offers interest rates from 3% to 7.45% for general customers and 3.5% to 7.90% for senior citizens on FDs maturing in 7 days to 10 years.
SBI: Provides interest rates between 3.50% to 7% for general customers and an additional 50 basis points for senior citizens on FDs maturing in 7 days to 10 years.
These higher rates from Yes Bank are part of its strategy to rebuild trust and increase liquidity by attracting more deposits.
2. Business Models
Each bank has a distinct business model:
Yes Bank: Historically focused on corporate lending, especially to large corporations and infrastructure projects. Post-2020, it has been shifting towards retail banking, offering personal loans and home loans, and expanding digital services.
HDFC Bank: Maintains a balanced approach with a strong emphasis on retail banking, including personal loans, home loans, and credit cards, providing a steady revenue stream.
SBI: As India’s largest bank, it serves a diverse customer base, including government entities and rural customers, with a vast network of over 22,000 branches.
Yes Bank is diversifying its portfolio by strategically transitioning to retail banking, reducing its reliance on corporate lending.
3. Ownership Structure
One of the biggest reasons Yes Bank survived its 2020 crisis was the financial backing from SBI, HDFC Bank, and other major banks. In March 2020, the Reserve Bank of India (RBI) and the government approved a rescue plan, where multiple banks invested in Yes Bank to prevent its collapse.
Current Shareholding of SBI and HDFC Bank in Yes Bank (2024):
SBI holds around 24% of the stake in Yes Bank.
HDFC Bank, ICICI Bank, and Axis Bank together hold around 8-10% stake.
SBI has played the most significant role, infusing capital and providing stability to Yes Bank. Without SBI’s intervention, Yes Bank might not have survived.
4. Financial Performance
When comparing any bank, financial stability is key. Let’s look at some numbers and compare stocks to see how Yes Bank stacks up against SBI and HDFC Bank in the year 2024.
| Metrics | Yes Bank | HDFC Bank | SBI |
| Total Assets in Rs. Cr | 406,362 | 40,30,194 | 67,33,779 |
| Net Profit in Rs. Cr. | 1,285 | 65,447 | 68,138 |
| Market Share Price in Rs. (as of 19th March 2025) | 17.02 | 1,743.95 | 745.05 |
While Yes Bank has significantly improved its financials post-crisis, it still lags behind SBI and HDFC Bank in terms of profit and asset size. Whether you are a customer looking for high FD rates or an investor watching theA, it’s essential to consider long-term financial stability before making a decision.
Conclusion
If you’re looking at Yes Bank for higher FD interest rates, it can be a good option, but always consider the bank’s overall stability before investing.
For those comparing it with SBI and HDFC Bank for savings accounts or loans, Yes Bank is still in the rebuilding phase and might not yet offer the same level of security and service. While Yes Bank has come a long way, it still has miles to go before it can truly stand alongside India’s biggest banks.