{"id":22767,"date":"2025-03-25T20:22:01","date_gmt":"2025-03-25T14:52:01","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=22767"},"modified":"2025-03-25T20:22:01","modified_gmt":"2025-03-25T14:52:01","slug":"aditi-chaurasiya-axis-bank-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22767","title":{"rendered":"Aditi Chaurasiya – Axis Bank limited"},"content":{"rendered":"

Title : Relationship of Nifty 50 with Axis Bank Limited .<\/span><\/p>\n

Author name : Aditi Chaurasiya.<\/span><\/p>\n

Introduction\u00a0 :<\/span><\/p>\n

Axis Bank Limited, formerly known as UTI Bank, is an Indian multinational banking and financial services company headquartered in Mumbai, serving as India’s third-largest private sector bank by assets. It offers a wide range of financial services to various customer segments, including large and mid-corporates, SMEs, and retail businesses.\u00a0<\/span><\/p>\n

Objective :<\/span><\/p>\n

To determine the beta value of Axis Bank Limited relative to the Nifty 50 index and assess its statistical significance .\u00a0<\/span><\/p>\n

Literature Review :<\/span><\/p>\n

1. Axis Bank\u2019s\u00a0 superior Non Performing Asset ( NPA )\u00a0 management : ( Chandramma , 2025 ) analyzed the Axis Bank\u2019s\u00a0 strong financial performance with lower Gross and Net NPAs, indicating effective asset quality management. It outperformed in key financial metrics such as Net Income (NI), Return on Equity (ROE), and Return on Assets (ROA), reflecting efficient operations. Despite some variability, the bank maintained financial stability and profitability. The study highlighted Axis Bank\u2019s superior NPA management compared to public sector banks. Its consistent performance suggests a well-structured approach to risk and asset management.<\/span><\/p>\n

2. Axis Bank\u2019s financial performance : ( Meghani , 2014 )\u00a0 states that Axis Bank’s financial performance in India was analyzed using the CAMEL model, assessing factors like capital adequacy, asset quality, management efficiency, earnings quality, and liquidity. The study found that Axis Bank had a high earnings per share of 50.28 and strong liquidity, though its return on assets was relatively low. Its capital adequacy ratio was above Basel norms, and it had a higher debt-equity ratio, indicating strong long-term solvency. Overall, the study concluded that Axis Bank demonstrated stable financial performance with efficient management and profitability.<\/span><\/p>\n

Data Collection :<\/span><\/p>\n

Data for Axis Bank Limited and Nifty 50 was downloaded for the period from 1st January, 2024 to 31st December, 2024. The data was manipulated to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and Axis Bank Limited as Y. A linear regression analysis was performed where Y was regressed on X.<\/span><\/p>\n

Data Analysis :<\/span><\/p>\n

Equation :\u00a0 Axis Bank Limited = 0.3881 + 1.1981 Nifty 50 .<\/span><\/p>\n

Interpretation :\u00a0<\/span><\/p>\n

The regression equation\u00a0 describes the relationship between the Nifty 50 (X) and the Axis Bank Limited share price (Y) . Indicating that the Axis Bank Limited share price is the dependent variable , while Nifty 50 is the independent variable .The positive coefficient of 1.1981 suggests that every unit increase in Nifty 50 , Axis Bank Limited share price is expected to increase by 1.1981 units . With 47 observations , the model\u2019s R \u2013 squared value is 0.3593 , implying that approximately 35.93% of the variation in Axis Bank\u2019s share price can be explained by changes in Nifty 50 , while the remaining 64.07% is attributed to other factors not included in the model . The p – value for the slope is 0.000084 , which is less than the conventional threshold of 0.05 , indicating that the relationship between Nifty 50 and Axis Bank\u2019s share price is statistically significant at the 5% level . Consequently , this model provide strong evidence to suggest a significant linear relationship between Nifty 50 and Axis Bank\u2019s share price , suggesting that market movements have a meaningful\u00a0 impact on the company\u2019s share price .<\/span><\/p>\n

Conclusion :<\/span><\/p>\n

Since the beta (1.1981)\u00a0 is more than 1 , it indicates that Axis Bank Limited is good for short term investment.<\/span><\/p>\n

References :<\/span><\/p>\n

1. Chandramma. M, 2025. “Role of Banks on Economic Development: A Special Reference to Management of NPA in Public and Private Sector Banks,” Journal of Banking and Financial Dynamics, Eastern Centre of Science and Education, vol. 9(1), pages 1-6.<\/span><\/p>\n

2. Kishore Meghani, 2014. “Financial Performance Of Axis Bank In The Post Reform Era: Analysis On CAMEL Model,” MPRA Paper 60260, University Library of Munich, Germany.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title : Relationship of Nifty 50 with Axis Bank Limited . Author name : Aditi Chaurasiya. Introduction\u00a0 : Axis Bank Limited, formerly known as UTI Bank, is an Indian multinational banking and financial services company headquartered in Mumbai, serving as India’s third-largest private sector bank by assets. It offers a wide range of financial services… Continue reading Aditi Chaurasiya – Axis Bank limited<\/span><\/a><\/p>\n","protected":false},"author":139751,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22767","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22767","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\/139751"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22767"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22767\/revisions"}],"predecessor-version":[{"id":22768,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22767\/revisions\/22768"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22767"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}