TITLE: PUNJAB NATIONAL BANK
• AUTHOR: PRIYA SURENDRA SHARMA• INTRODUCTION: Punjab National Bank (PNB), established in 1894, is one of India’s oldest and leading public sector banks. Headquartered in New Delhi, it provides a wide range of banking and financial services, including retail and corporate banking, asset management, and international banking operations. PNB has a vast network of branches and ATMs across India and overseas, catering to millions of customers. It has played a significant role in India’s economic development and is known for its customer-centric approach and commitment to financial inclusion.• OBJECIVE: TO FIND OUT BETA AND SIGNIFICANCE OF PUNJAB NATIONAL BANK.• DATA COLLECTION: Data was collected from NSE site for the period of 1/5/23 to 30/4/2024. Data was manipulated to find the Friday closing price. Weekly returns of NIFTY50 and PUNJAB NATIONAL BANK were calculated. Weekly return of PUNJAB NATIONAL BANK if Y and weekly returns of NIFTY50 is X. Weekly return of PUNJAB NATIONAL BANK was regressed on weekly returns of NIFTY50.• DATA ANALYSIS:Weekly return of Punjab National Bank = (-1.15) + 1.56 (weekly return of NIFTY50 (2.97 T STAT)
N=48, R2=0.16 , F=8.82 , P VALUE=0.0047
• INTERPRETATION: The above equation shows the relationship between Weekly Return of PUNJAB NATIONAL BANK and Weekly return of NIFTY 50. The plus sign before the coefficient of NIFTY50 tells that if NIFTY rises your company will also rise and vice versa.2.97 is the TSTAT for the Beta and the P value for which is 0.0047 which is less than 0.05 meaning Beta is statistically significant @ 5% level.
R2 is 0.16 meaning 16 % of companies return are explained by NIFTY50 the balance 84 % maybe due to fundamentals.
F is 8.82 and the P value is 0.0047 meaning the overall model is statistically significant.
• CONCLUSION: Since Beta is 1.56 which is more than 1, this is good for short term investment,