Introduction: UCO Bank, established on January 6,1943, is a prominent public sector bank headquartered in Kolkata, West Bengal, India. Under the leadership, Chairman and Managing Director Shri. Ashwani Kumar the bank offers a diverse range of financial services, including retail and corporate banking, international banking, and treasury operations. UCO Bank has built an extensive network of branches and ATMs across the country, ensuring accessibility to a broad customer base with a commitment to serving both domestic and international markets, the bank has a notable presence in various countries.
Objective: To calculate Beta and it’s significance
Views and Reviews : During the year 2022-23, Interest income during the year rose 17.8% on a year-on-year (YoY) basis. Interest expenses were up by 21.1% YoY during the same period. Operating expenses increased by 15.4% YoY during the year.The bank’s net interest income (NII) increased by 13.4% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 2.9% in FY23 as against 2.9% in FY22. Net profit for the year increased by 104.1% YoY. Net profit margins during the year increased to 10.3% in FY23 from 6.0% in FY22. The net interest income of UCO BANK stood at Rs 73,431 m in FY23, which was up 13.4% compared to Rs 64,729 m reported in FY22. UCO BANK’s net interest income has grown from Rs 43,112 m in FY19 to Rs 73,431 m in FY23.Over the past 5 years, the net interest income of UCO Bank has grown at a CAGR of 14.2%.
Data Collection: Nifty and Bank of UCO Bank closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of UCO Bank is termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
Data Analysis :
Equation: Y= -1.01855608+0.98162758x
Interpretation:
The above equation shows the relation between Nifty50 and UCO Bank
Return of UCO Bank is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of UCO Bank will also rise by 0.23 and vice-versa.
Number of observations are 50.
11.67419592 is the t-stat for b, the p-value for which is 1.26E-15
R square is 0.739536489 which means 73.95% of variances in Bank of Baroda are explained by Nifty.
F is 136.28. Overall the model is statistically insignificant at 5% level.
Conclusion: As Beta is -1.018 which is less than 1, it is good for long term investment.
https://www.equitymaster.com/research-it/annual-results-analysis/UCBK/UCO-BANK-2022-23-Annual-Report-Analysis/4524#:~:text=The%20ratio%2Ffinancial%20analysis%20of,compared%20to%2010.1%20in%20FY22.