NAME \u2013 RACHIT MAHESHWARI
\nSAPID \u2013 80012100044
\nDIVISION A<\/p>\n
Relation between NIFTY and RBL Bank
\nIntroduction:
\nRBL Bank is one of India\u2019s leading private sector banks with an expanding presence across the country. The Bank offers specialized services under five business verticals namely: Corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Retail Assets and Treasury and Financial Markets Operations. It currently services over 10.66 million customers through a network of 500 branches; 1,424 business correspondent branches (of which 274 banking outlets) and 407 ATMs spread across 28 Indian states and Union Territories.
\nRBL Bank is listed on both NSE and BSE (RBLBANK).
\nObjective:
\nTo calculate the Beta value and find its significance.<\/p>\n
Data collection:
\nThe data was gathered from a secondary source, the NSE’s official website. Data on the NSE’s daily closing stock price and the RBL bank has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.<\/p>\n
Data Analysis:<\/p>\n
Regression Statistics
\nMultiple R\t0.77582638
\nR Square\t0.60190658
\nAdjusted R Square\t0.59219698
\nStandard Error\t15.0529401
\nObservations\t43<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.60190658, meaning that the 60.19% of weekly returns of RBL Bank can be explained by Nifty, which is comparatively higher than most industry trends. We can conclude that RBL Bank does follows the Nifty trend.<\/p>\n
ANOVA
\n\tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t14046.5804\t14046.5804\t61.9909001\t9.92E-10
\nResidual\t41\t9290.23123\t226.591006
\nTotal\t42\t23336.8116\t\t\t<\/p>\n
Interpretations (Hypothesis):
\nH0: Nifty is not influencing the weekly returns of RBL Bank
\nH1: Nifty is influencing the weekly returns of RBL Bank
\nHere as the F value is 61.9909001 which is more than 4, thus we reject the null hypothesis and accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of SBI.
\nAlso, the Significance F value is 9.92E-10 which is less than 0.05 thus the model is significant. <\/p>\n
\tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%
\nIntercept\t-130.22193\t34.1358695\t-3.8148123\t0.00045123\t-199.16072\t-61.3
\nClosing price of NIFTY\t0.01621322\t0.00205923\t7.87343001\t9.92E-10\t0.01205451\t0.02<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.01621322 meaning that 1 unit change in Nifty leads to 0.01621322 change in weekly returns of RBL Bank. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nP value is 0.00045123 which is less than .05 thus the model is significant at 95% confidence interval. <\/p>\n","protected":false},"excerpt":{"rendered":"
NAME \u2013 RACHIT MAHESHWARI SAPID \u2013 80012100044 DIVISION A Relation between NIFTY and RBL Bank Introduction: RBL Bank is one of India\u2019s leading private sector banks with an expanding presence across the country. The Bank offers specialized services under five business verticals namely: Corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Retail Assets… Continue reading Relation between NIFTY and RBL Bank<\/span><\/a><\/p>\n","protected":false},"author":91987,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-16053","post","type-post","status-publish","format-standard","hentry","category-computing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91987"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16053"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16053\/revisions"}],"predecessor-version":[{"id":16109,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16053\/revisions\/16109"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16053"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}