Title: Relationship between Nifty 50 & RBL Bank Ltd
Author: Rupali Aher
Introduction:
Ratnakar Bank Limited (RBL) scheduled commercial bank headquartered in the Kolhapur Maharashtra, India. It is established on August 1943, one of the oldest private banks in India. RBL Bank is one of India’s quickest developing private sector banks which keeps money with a growing nearness the nation over. RBL offers particular administrations under the six business verticals to be specific is in Corporate and Institutional Banking, Commercial Banking, Branch and Business Banking, Retail Assets, Development Banking and Financial Inclusion, Treasury and Financial Markets Operation. It at present administrations over 8.49 million clients through a system 1,631 Offices (386 Branches and 1,245 BC Branches) spread across 28 Indian States and Union Territories a Bandhan Bank Savings Account.
Objective:
To find beta and its significance
Views and Reviews:
1.In the research done by International Journal of Engineering Technology and Management Sciences (IJETMS) found out that RBL and bandhan Bank have the lowest NPA, that means they have less recycling of funds and higher lending ability.
Data Collection:
The historical data was collected from the website of NSE India for the period of 01/10/2023 to 30/09/2023 of Nifty 50 and RBL Bank Ltd.
Data Analysis:
- Regression Equation: RBL Bank Ltd=1.08+2.26×Nifty 50
- of Observations:49
- R Square (Coefficient of Determination): 0.243
- Beta coefficient (β) for Nifty 50 is 2.26
- F: 15.10304
- P-value: 0.000318
The above equation shows us the relationship between Stock prices changes of Nifty 50 and RBL Bank Ltd. Where RBL Bank Ltd is dependent variable and Nifty 50 is independent variable. The positive sign shows when Nifty 50 has risen RBL Bank Ltd has also risen. If Nifty 50 rises by Rs1, RBL Bank Ltd rises by Rs.2.26. P-value is 0.00 which means Nifty 50 is statistically significant at 1% level. R square is 0.243 which means 24.3% of the price fluctuations of RBL bank Ltd are dependent on Nifty 50. The remaining 75.7% of the variability is not explained by the model and is attributed to other factors or random variation. F is 15.10304 and p-value is 0.00 The low p-value suggests that the overall regression model is statistically significant, and we can reject the null hypothesis that all coefficients are equal to zero. which means overall model is statistically significant at 1%
Conclusion:
As Beta is 2.26 which is greater than 1 the RBL Bank Ltd is good for short-term investment.
References:
IJETMS, IMPACT OF COVID19 IN INDIAN STOCK MARKET WITH FOCUS ON BANKING SECTOR, Ms. Avantika Jaiswal, Dr. Ruchi Arora