Author: Krish Shetty
Introduction
Kotak Mahindra Bank Limited commenced operations in 2003 as a private sector bank following conversion from a non-banking financial company. It has grown into one of India’s leading financial services providers. The bank plays a key role in retail and corporate banking.
Objective
To determine the Beta of Kotak Mahindra Bank Limited with respect to Nifty 50 and assess its statistical significance.
Literature Review
An Analysis of Kotak Mahindra Bank’s Performance in Private Banking Sector – Kohli, R., Shetty, P. 2023
Kotak Mahindra Bank has shown strong growth in financial services, with a focus on retail lending and digital banking from 2014-2024. The study highlights revenue growth and operational efficiency as key drivers. Analyst reports emphasize stable margins and market position (Prabhudas Lilladher, 2023).
Data Collection
The data for Kotak Mahindra Bank Limited and Nifty50 were collected for the period from 06-Dec-2024 to 28-Nov-2025. The dataset was manipulated to extract Friday closing prices, where Nifty50 was treated as the independent variable X and Kotak Mahindra Bank Limited as the dependent variable Y. A regression analysis was conducted on this data.
Data Analysis
Equation
Kotak Mahindra Bank = 0.2946 + 0.8377 Nifty50
Interpretation
The regression equation describes the relationship between the Nifty 50 (X) and the Kotak Mahindra Bank share price (Y). The positive coefficient of 0.8377 suggests that for every 1% increase in the Nifty 50’s weekly return, the Kotak Mahindra Bank share price is expected to increase by approximately 0.84%. With 48 observations, the model’s R-squared value is 0.2952, implying that approximately 29.52% of the variation in Kotak Mahindra Bank’s weekly share price returns can be explained by changes in the Nifty 50’s weekly returns, while the remaining 70.48% is attributed to other factors. The p-value for the slope is 0.0000659, which is less than the conventional threshold of 0.05, indicating that the relationship is statistically significant.
Conclusion
Kotak Mahindra Bank beta of 0.8377 indicates that it is less volatile than the market Nifty 50 returns and hence it is better suited for long-term investment.
References
[1] Kohli, R., Shetty, P. (2023). Private Banking Sector in India. Journal of Banking and Financial Services.
[2] Prabhudas Lilladher. (2023). Kotak Mahindra Bank Coverage Report.