Title: Relationship between Nifty and Punjab National Bank
Author: Priyanka Adurkar
Introduction: Punjab National Bank (abbreviated as PNB) is an Indian public sector bank based in New Delhi. It was founded in May 1894 and is the third-largest public sector bank in India in terms of its business volumes, with over 180 million customers, 12,248 branches, and 13,000+ ATMs. PNB has a banking subsidiary in the UK (PNB International Bank, with seven branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul. It has representative offices in Almaty (Kazakhstan), Dubai (United Arab Emirates), Shanghai (China), Oslo (Norway), and Sydney (Australia). Total operating income of PNB in 2023 is US$2.9billion. PNB MetLife India Insurance company, PNB Housing Finance Limited are the subsidiaries of PNB.
Objective: To Calculate beta and its significance.
Views and reviews: PNB is planning to raise up to Rs 3000 crore by issuing Basel-III Additional Tier-I bonds. The issue comprises a base size of Rs 500 crore, with a greenshoe option of Rs 2500 crore. A greenshoe option allows companies to issue more bonds or raise more funds than the base issue size.
PNB will come up with over 2000 employee vacancies for 2024-25, said Managing Director and Chief Executive Officer Atul Kumar Goel during post Q2FY23-24 results press conference on October 26
Data Collection: The data for this period has been downloaded from the site nseindia.com. Friday closing price has been calculated. Weekly returns of Nifty are “x” and of Equity is “y” and it has been calculated.
Data Analysis: Equation of PNB is PNB = -1.65485 + 0.887746Nifty shows the relationship between Nifty 50 and Punjab National Bank. PNB is dependent variable and Nifty 50 is independent variable. Number of observations are 50.
Conclusions: here the beta is less than 1 so PNB is better for the long-term investment.