Title: Relationship of State Bank of India Life Insurance with Nifty
Author: Shweta Purohit
Introduction : SBI Life is a private firm founded as a joint venture between BNP Paribas Cardiff, a French financial services provider and international bank based in Paris, and State Bank of India, India’s largest financial services provider and state-owned bank.
Objective: To Calculate the Beta of State Bank of India.
Literature Review:
1) This is a paper based on empirical investigation conducted in Western India between 2002 and 2012 especially at a time when the Indian economy is in a stage of transition from state capitalism to free market capitalism, albeit both of a retarded variety. It takes the 7 Ps of services marketing and cross verifies responses against seven dimensions of ethical conduct. The study is based on questionnaires followed by interviews. The target respondents were life insurance employees of bank assurance involved in marketing life insurance policies to customers in the urban sector. The study brought to the fore the fact that commissions were more important that telling the truth while selling policies. In the process ethical considerations conveniently went out of the window. To protect the interest of the unsuspecting clients a plea is made to have governance machinery in place that will make the insurance marketing personnel accountable for what and how they sell their wares. This need is especially felt in a country where the social security net is virtually non-existent and the erstwhile joint family system is on a fast decline.(Sadri & Tara, 2012)
2) Design/Methodology/Approach – The study is based on primary data collected using a structured questionnaire from customers buying life insurance policies from SBI Life through diff erent branches of State Bank of India in the city of Guwahati in the state of Assam, India. Cronbach’s alpha was used to test the reliability of the questionnaire. Statistical tools, such as mean, standard deviation, and factor analysis were used to attain the objective of the study.( Choudhury & at al)
Data Collection
Data was collected from Yahoo Finance site from 1st April 2022 to 31st March 2023.
Data Analysis
Y^=0.105+0.811 (t-stat=3.82)
N=50
R2 = 0.233
F = 14.65
Significance= 0.0003
SBI Life insurance return = 0.105
Nifty return = 0.811
CONCLUSION
The above equation shows the relationship between Y and X. Positive sign means there is a direct relationship, which means X and Y are both rising simultaneously. Figure in the bracket is t-stats for b it is more than the table value . R2 is 23% of y is explained by x. F is 14.65 . The beta is 0.811 which means it is less than one and is good for long term investment.
Reference:
1) Sorab Georgy Sadri & Sharukh N Tara (2012): -,2012.
2) Mousumi Choudhury & Ranjit Singh & Hemanta Saikia (2016): Measuring Customer Experience in Bancassurance: An Empirical Study,volume no 28, 2016.