Topic: Relationship of Yes Bank with Nifty 50
Author: Yashee Kesaria
Roll no.0222026
Introduction: Yes Bank is a prominent Indian private sector bank that has played a significant role in the country’s banking and financial services sector. Founded in 2004 by Rana Kapoor and Ashok Kapur, Yes Bank has rapidly grown to become one of India’s major banks, known for its innovative financial products and services. Yes Bank offers a comprehensive range of banking and financial services, including retail banking, corporate banking, asset management, wealth management, and more. It has also been involved in various financial market activities.
Objective: To calculate the beta of Yes Bank and find out its significance.
Views and reviews: Prashant Kumar was the CEO of Yes Bank. However, the performance of a CEO can change over time, and I don’t have access to real-time information.In general, the CEO of Yes Bank at that time, Prashant Kumar, was instrumental in leading the bank through a challenging period marked by financial instability and a restructuring process initiated by the Reserve Bank of India. His leadership was focused on stabilizing the bank’s operations, improving asset quality, and rebuilding investor and customer confidence.For the most current and accurate assessment of Prashant Kumar’s performance as CEO of Yes Bank, I recommend referring to recent news articles, financial reports, or official statements from the bank.
Sunil Mehta’s performance as Chairman of Yes Bank would be subject to change and would depend on the bank’s subsequent developments and financial results. To get the most current review, it’s advisable to refer to the latest reports and news regarding Yes Bank and its leadership. Data Collection Data Collection
The data for the period July 1, 2022 to June 30, 2023 has been downloaded from NSE’s website and Friday’s closing price was found out. The weekly returns of Nifty 50 are represented as X and that of Yes Bank as Y.
Data Analysis
Y = 0.07245+1.5195x+e
tstat = 2.8915
N = 50
R2 = 0.148348
F = 8.3610
The above equation shows the relationship between Nifty 50 (X) and Yes Bank (Y). The positive sign means there is a positive relationship, which means, if X rises then Y also rises and vice-versa. If Nifty 50 (X) rises by 1 unit, Yes Bank (Y) rises by 1.51 units. N means there are 50 observations. The t-stat for b is 2.89,which means b is statistically significant at 5% level. R2 = 0.14 means that 14% of Yes Bank (Y) is explained by Nifty 50 (X) and the balance 86% which is error due to the variables which are not in the model.
Since the F = 8.36 which is more than the tabulated F value (F 0.05, 1DF, 49DF = 4.038), the overall model is statistically significant at 5% level.
Conclusion
Since the beta of Yes Bank is 1.51, the shares of the company are good for a long-term investment. This is because b>1.