A Study of Banking Stock in India and an Appropriate Model for Prudent Investment

Authors

  • P. R. Ramakrishnan
  • Subhendu Dey
  • Badri Toppur
  • S. Merlin Mythili

DOI:

https://doi.org/10.33516/rb.v42i2.23-32p

Keywords:

Portfolio Optimization, Return on Assets, Rate of Return, Net Interest Margin, Non-Performing Assets.

Abstract

Investments in stock markets have always been volatile, uncertain, complex and ambiguous. Can we overcome this by adopting a suitable research in a particular industry with the probable risk and uncertainty embedded? This critical thinking has triggered the analysis described in this paper; the fast growing banking sector has been chosen for the study. The financial result published by the various banks up to the year ending December 2014 has been taken for our scrutiny. A sample of forty commercial banks listed in the schedule of Reserve Bank of India and listed with National Stock Exchange (NSE) has been taken for analysis. A non-linear portfolio optimization model has been developed that can be used by investors to park their surplus funds in Indian banking stock. In addition statistical comparisons between public sector banks and private sector banks have been conducted across important financial ratios.

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Published

2016-07-01

How to Cite

Ramakrishnan, P. R., Dey, S., Toppur, B., & Merlin Mythili, S. (2016). A Study of Banking Stock in India and an Appropriate Model for Prudent Investment. Research Bulletin, 42(2), 23–32. https://doi.org/10.33516/rb.v42i2.23-32p

Issue

Volume 42, Issue 2, July 2016

Section

Articles
Crossref
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Europe PMC

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