A Study on Risk and Return Analysis of Selected Banking Securities

— In each country the banking system plays a prominent role in the development of its economy, and Indian banking sector is not exceptional. Indian financial sector is the backbone of the country’s economy development, the banking sector plays a key role in empowerment of all areas. In the capital market, the equity market plays a huge role. And it’s volatile in nature too. Banking sector equity market has volatility and less returns on investment in some of the banks and some of the banks have more volatility in investment also. The investors identify the minimum risk and maximum return on investment decisions through portfolio analysis. Hence, understanding the risk involved in the investment helps to maximize returns. This study helps investors to understand from the Previous Behaviour Of Selected data., to make the best decision through market volatility, the primary objective of this study is to analyse the risk and return of selected banking securities.

This study covers the period from 1st January 2018 to 31st December 2018.The data has been tested by different statistical tools namely: Mean, Standard deviation, Beta and Correlation.The findings of the study exposed that the average of daily returns for the NSE NIFTY 50 Index for the period was positive.However, the average returns of the selected banks' stocks show negatively except ICICI BANK. 3. Suresh and Sai Prakash (2018) have conducted a study on "Comparison of risk-return analysis of public and private sector banks listed on bank nifty".The objectives of the study are to identify the return and risk of public and private banks listed on bank nifty, to rank the stocks on the basis of returns, to compare the performance of each stock against their benchmark index and to measure the portfolio return and risk of public and private banks listed on bank nifty.The study has covered a period of 12 months i.e., starting from 1st January 2016 till 31st December 2016.They have selected 12 stocks listed on bank nifty in NSE.The study is based on secondary data.The data have been collected from NSE website, newspaper, journals, books, reports by researchers and scholars.The study is based on the analysis of stocks listed on bank nifty.They have concluded that the study is an attempt to evaluate the returns of banking stocks listed on bank nifty and identify the best stocks to invest and the worst stocks to be ignored.

Gautami and Nalla Bala Kalyan (2018) have conducted the study on "A comparative study on risk and return analysis of selected stocks in India"
The study has focused on the objective: 1.To study the fluctuation in share prices of selected companies 2. To study the risk involved in the securities of selected companies 3. To make comparative study of Risk and Return of Bharati Airtel, Dabur India Panyam, Asian Paint.The data has been collected from the sources, such as present and historical data and also from Indian bull and internet.The tools used here are average return, standard deviation.The samples are taken from Bharati Airtel, Dabur India Panyam and Asian Paints.They have concluded that the study helped the investor to define the trends to some extent.2017) have conducted a study on "The Risk and Return Analysis of Equity shares with special reference to select Mutual Fund companies" The study has focused on the objectives: 1.To study the Capital Asset Pricing model (CAPM) 2. To measure the risk and return on select mutual fund companies listed in NSE by using CAPM 3. To analyse the performance of stock of select companies by using Jenson's Alpha.The samples were randomly selected from NSE's 500 index from April 2011 to March 2016.The risk and return analysis were done by using Capital Asset Pricing Model and Performance analysis was done by using Jenson's Alpha.It has been concluded from the Study that the investors chose SBI and ICICI to invest their funds because their cost of capital and risk is less and they are performing too well.

III. RESEARCH METHODOLOGY NEED FOR THE STUDY:
Banking sector plays a vital role in the development of the economy, investing in banking securities is very common among investors, but the banking sector securities tend to be volatile in nature, so If the Market value of the banking securities drops, the asset shrinks.In this present situation, risk analysis of select banking securities in India is felt highly relevant.Proper analysis of risk and return is very important to become an efficient investor.Hence, the study aims to conduct risk and return analysis of select banking securities .

SCOPE OF THE STUDY:
This research on banking securities analysis of Indian stock market with reference to BSE, provides information to the investor to identify the best investment of banking securities.In this present situation, risk analysis of select banking securities in India is felt highly relevant.Proper analysis of risk and return is very important to become an efficient investor.Hence, the study aims to conduct risk and return analysis of select banking securities in Bombay Stock Exchange (BSE).

OBJECTIVE OF THE STUDY
1. To analyse the risk of selected banking securities 2. To analyse the return of selected banking securities 3.To examine the relationship between the Sensex and Securities .Return.4.To identify the best Investment from Selected banking securities.

RESEARCH DESIGN:
The study is based on secondary data.The data have been collected from secondary sources such as websites like Investopedia, BSE and Moneycontrol.com,Journals, newspapers, books, etc., The collection of share prices of select companies for a period of Seven years.The study of Risk-Return analysis for a period of Seven years (2014)(2015)(2016)(2017)(2018)(2019)(2020).

DATA COLLECTION:
The sample of stocks for collecting secondary data has been selected based on random sampling for a period of seven years from 2014-2020.

SAMPLE SIZE:
To analyse the risk and return analysis seven banks are chosen SEVEN BANKS: The AXIS Bank has less returns when compared with the market returns.The AXIS Bank has 3.4and BSE Sensex has 4.4 .The AXIS Bank has the higher risk with 10.7 when compared to the market returns.The AXIS Bank has the higher systematic risk with 1.3 .when comes to the correlation the AXIS Bank is related to the BSE Sensex with 0.95 The KOTAK Bank has higher returns when compared with the market returns.The KOTAK Bank has 6.7 and BSE Sensex has 4.4.The KOTAK Bank has least risk with 5.39 when compared to the market returns.The Mehta Vani Joghee1, Kanagatharani B2, Gayathri S3, Yazhini Devi R4 The FEDERAL Bank has less returns when compared with the market returns.The FEDERAL bank has 3 and BSE Sensex has 4.4 .the FEDERAL Bank has higher risk with 12.66 when compared to the market returns.

PARTICULARS
The FEDERAL Bank has the systematic risk with 1.4 .when comes to the correlation the FEDERAL Bank is related to the BSE Sensex with 0.8928 RISK AND RETURN ANALYSIS

RISK AND RETURN OF KOTAK BANK IN COMPARISON WITH SENSEX
The ICICI Bank has Similar returns when compared with the market returns.The ICICI Bank has 4.5 and BSE Sensex has 4.4 .The ICICI Bank has similar risk with 7.97 when compared to the market returns.The ICICI Bank has the systematic risk with 1. when comes to the correlation the ICICI Bank is related to the BSE Sensex with 0.8893

RISK AND RETURN OF HDFC BANK IN COMPARISON WITH SENSEX
125 KOTAK Bank has the less systematic risk with 0.6 .When it comes to correlation The KOTAK Bank is related to the BSE Sensex with 0.931431The HDFC Bank has higher returns when compared with the market returns.The HDFC Bank has 5.56 and BSE Sensex has 4.4 .The HDFC Bank has less risk with 6.63 when compared to the market returns.The HDFC Bank has the least systematic risk with 0.8 .When comes to the correlation the HDFC Bank is related to the BSE The INDUSIND Bank has higher returns when compared with the market returns.The INDUSIND Bank has 5.7 and BSE Sensex has 4.4 .The INDUSIND Bank has Higher risk with 15.5 when compared to the market returns.The INDUSIND Bank has the high systematic risk with 1.7 .When comes to the correlation The INDUSIND Bank is related to the BSE Sensex with 0.90629 RISK

AND RETURN OF CITY UNION BANK IN COMPARISON WITH SENSEX
The CITY UNION Bank has the same returns when compared with the market returns.The CITY UNION Bank has 4.4 and BSE Sensex has 4.4 .The Bank has less risk with 7.87 when compared to the market returns.The CITY UNION Bank has the systematic risk with 0.8 .When comes to the correlation the CITY UNION Bank is related to the BSE Sensex with 0.8080 RISK