By – Yasha Sharma
SAP ID – 80012100567
INTRODUCTION
Yes Bank is an Indian public sector bank headquartered in Mumbai, India and was
founded by Rana Kapoor and Ashok Kapur in 2004.
It offers wide range of differentiated products for corporate and retail customers
through retail banking and asset management services. On 5 March 2020, in an
attempt to avoid the collapse of the bank, which had an excessive amount of bad loans,
the Reserve Bank of India (RBI) took control of it. RBI later reconstructed the board
and named Prashant Kumar, former chief financial officer and deputy managing
director of State Bank of India, as MD & CEO of Yes Bank, along with Sunil Mehta,
former non-executive chairman of Punjab National Bank, as Yes Bank’s non-executive
chairman.
The bank’s management under the new leadership of Kumar, immediately repositioned
itself and dealt with all internal and market related challenges to restore customer
and depositor confidence. Under the coordinated efforts of the new board and
management, Mehta assured shareholders of speedy recovery, even as the Reserve
Bank of India (RBI), State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank and
other banks lent it support through a historic Yes Bank Reconstruction Scheme 2020.
OBJECTIVE
To calculate beta of the company and find its significance
VIEWS AND REVIEWS
• YES BANK believes in a knowledge driven approach to banking and has
deployed a strategic four-pronged, approach to its sustainable financing work.
• YES BANK has adopted a knowledge driven approach to offer financial solutions,
which go beyond the traditional realm of banking.
• Mission of Yes Bank is to establish a high-quality, customer-centric, service-
driven, private Indian Bank catering to the ‘Future Businesses of India’
• With an objective to achieve global Sustainable Development Goals (SDGs), YES
BANK has joined hands with the United Nations Environment Programme
Finance Initiative (UNEP FI), to launch the Principles of Responsible Banking –
the first and only global framework to ensure that the banking sector works in
alignment with the SDGs and Paris Agreement.
DATA COLLECTION
Data of index and equity were collected from https://www1.nseindia.com/ and
https://www.nseindia.com/ respectively. Daily returns from 1st March-2021 to 28 Feb-
2022 were downloaded in excel format from these websites and it was sorted into
weekly format. Then weekly returns were calculated for both index and equity and then
regression analysis was done.
DATA ANALYSIS
Predicted Y = 0.058006+0.505015X
N=46, R Square= 0.098155
F= 4.788847
Tstat (beta) = 1.097819
Tstat (0.05,45)= 2.0141
The above regression equation tells us the relationship between X and Y. Where X is
NIFTY’s weekly returns and Y is Yes Bank Ltd’s weekly returns.
The positive sign of Beta tells us the that there is a positive relationship between NIFTY
and Yes Bank Ltd’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.505015 units.
T calculated is more that T tabulated which means, β is statistically significant at 5%
confidence level.
R^2 is 0.098155 which means 9.8% of Y (Yes Bank Ltd) is explained by X. And the
balance is explained by error.
F is 4.788847 which is more than table value which means model is statistically
significant at 5% level.
CONCLUSION
β is statistically significant in case of NIFTY and Yes Bank Ltd. Also, it can be concluded
that Yes Bank ltd is a medium beta share. Since it is around than 1.