Title: Relation of Suryoday Small Finance Bank with Nifty50
Author: Sahil Gaware
Introduction
Suryoday Small Finance Bank Limited (SSFB) is a prominent financial institution in India. It primarily focuses on providing financial services to the underserved and unbanked sectors. Founded to enhance financial inclusion, SSFB delivers a variety of banking products tailored to meet the needs of small and medium enterprises (SMEs) and individual customers.
Objective:
To determine the key financial characteristics of Suryoday Small Finance Bank and assess its relationship with Nifty50.
Literature Review:
New Approaches to Financial Capacity Assessments(Gourdon et al., 2023):
Gourdon and colleagues present refined methodologies for evaluating financial performance and capacity. The study emphasizes the limitations of traditional assessments and proposes dynamic approaches such as using productivity metrics and average production figures. By incorporating these advanced methodologies, the research offers a comprehensive framework for understanding financial institutions’ capacity, aiding policymakers in tackling inefficiencies and optimizing performance.
Impact of Financial Institutions on Economic Growth (David, 2017):
David’s research explores the relationship between the growth of financial institutions and national economic development from 1990 to 2015. Using econometric models, the study finds a positive correlation between the expansion of financial institutions and GDP growth, particularly in emerging economies. The findings highlight the pivotal role that financial institutions play in fostering employment, trade, and economic resilience.
Data Collection:
The data for Suryoday Small Finance Bank and Nifty50 was collected for the period 1st January 2024 to 31st December 2024. It includes weekly Friday closing prices for analysis.
Data Analysis:
Equation: Suryoday Small Finance = a + b(Nifty50)
Interpretation:
The regression equation describes the relationship between Nifty50 (X) and Suryoday Small Finance’s share price (Y), indicating that Suryoday Small Finance’s share price is the dependent variable, while Nifty50 is the independent variable.
With 46 observations ((N = 46)), the F-value for the model is 5.9, and the p-value for the slope is 0.019, which is less than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and Suryoday Small Finance’s share price is statistically significant at the 5% level. Consequently, this model provides evidence to suggest a significant linear relationship between Nifty50 and SuryodaySmall Finance’s share price.
Conclusion:
The report highlights Suryoday Small Finance Bank’s role as a key player in India’s banking sector. Future data analysis will help derive insights into its market behavior and relationship with broader indices like Nifty50.
Reference:
1. Gourdon, D. et al., 2023. *New Approaches to Financial Capacity Assessments.* OECD Publications.
2. David Perry, 2017. *Economic Impact of Financial Institutions.* University of Calgary.