Description
• To measure the comparative beta analysis of selected Indian banks.
• To evaluate the correlation between nifty returns and ICICI bank returns.
• To evaluate the correlation between Nifty returns and HDFC returns.
• To evaluate the correlation between Nifty and Andhra bank returns.
• To evaluate the correlation between Nifty and Vijay bank returns.
Limitations
1. The data collected is only from secondary source.
2. The data which is collected for doing this report has been collected from Internet Websites where there can be some hitches.
3. The Time period taken for doing the data analysis has been from from NSE (Nifty) 2006-07.
1. b Data Collection Methods
For the purpose of the study was collected through secondary source of data collection method. Major source of data are published stock prices of HDFC, ICICI Bank AND NIFTY.
1.c Time Period:
I collected weekly average prices of HDFC, ICICI BANK AND NIFTY for the period of APR.
A STUDY ON
“SYSTEMATIC RISK OF SELECT BANKING SCRIPTS TRADED
IN NSE”
FROM
INDIA BULLS LTD
PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT
FOR
The Award of Deree of
MASTER!S IN BUSINESS ADMINISTRATION
DECLARATION
I hereby declare that this Project Report titled
“SYSTEMATIC RISK OF SELECT BANKING SCRIPS TRADED IN NSE” submitted by
me to the Department of Business Management, XXXXX, Hyderabad is a
bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/certificate or
published any time before.
PLACE:
DATE: (XXXX)
ACKNO"LEDGEMENT
I take this opportunity to thank ### of. XXXX, for his encouragement in doing the project work.
I would like to thank ### Fa$%&'( of MBA Dept, her guidance and suggestion.
I take the opportunity to express my deep and sincere gratitude to the management of
INDIA BULLS LTD for their gesture of allowing me to undertake this project and its arious
employees who lent their hand towards the completion this study.
!####)
"ontents
1. Introduction........................................................................................1
1.a Objectives....................................................................................11
1.b Data Collection Methods.................................................................12
1.c Time Period..................................................................................13
2. Literature Revie...............................................................................1!
"bout #eta $ De%inition& Theor'............................................................1!
3. Com(an' Pro%ile................................................................................2)
3.a Introduction o% *+,.......................................................................2)
3.b Introduction o% ICICI #an-..............................................................3!
3.c Introduction o% .D/C #an-.............................................................30
3.d Introduction to "ndhra #an-...........................................................!2
3.e Introduction o% 1I2"3" #"*4...........................................................!3
!. Data "nal'sis.................................................................................52
Tables and charts o% 6ee-l'& Monthl' and 3earl' ith Inter(retation...........52
5. Conclusion 7 +u88estion.....................................................................9)
:. Limitations........................................................................................91
;. Methodolo8'.....................................................................................92
9. #iblio8ra(h'......................................................................................93
*+ I,'rod%$'-o,
The Reserve #an- o% India s central ban-. Thou8h
(ublic sector ban-s currentl' dominate the ban-in8 industr'&
numerous (rivate and %orei8n ban-s e?ist. India>s 8overnment@
oned ban-s dominate the mar-et. Their (er%ormance has been
mi?ed& ith a %e bein8 consistentl' (ro%itable. +everal (ublic sector
ban-s are bein8 restructured& and in some the 8overnment either
alread' has or ill reduce its onershi(.
Private and foreign banks
The R#I has 8ranted o(eratin8 a((roval to a %e (rivatel' oned
domestic ban-sA o% these man' commenced ban-in8 business.
/orei8n ban-s o(erate more than 15) branches in India. The entr'
o% %orei8n ban-s is based on reci(rocit'& economic and (olitical
bilateral relations. "n inter@de(artmental committee a((roves
a((lications %or entr' and e?(ansion.
Capital adequacy norm
/orei8n ban-s ere reBuired to achieve an 9 (ercent ca(ital
adeBuac' norm b' March 1003& hile Indian ban-s ith overseas
branches had until March 1005 to meet that tar8et. "ll other ban-s
had to do so b' March 100:. The ban-in8 sector is to be used as a
model %or o(enin8 u( o% India>s insurance sector to (rivate domestic
and %orei8n (artici(ants& hile -ee(in8 the national insurance
com(anies in o(eration.
Banking
India has an e?tensive ban-in8 netor-& in both urban and rural
areas. "ll lar8e Indian ban-s are nationaliCed& and all Indian
%inancial institutions are in the (ublic sector.
RBI banking
The Reserve #an- o% India is the central ban-in8 institution. It is the
sole authorit' %or issuin8 ban- notes and the su(ervisor' bod' %or
ban-in8 o(erations in India . It su(ervises and administers
e?chan8e control and ban-in8 re8ulations& and administers the
8overnment>s monetar' (olic'. It is also res(onsible %or 8rantin8
licenses %or ne ban- branches. 25 %orei8n ban-s o(erate in India
ith %ull ban-in8 licenses. +everal licenses %or (rivate ban-s have
been a((roved. Des(ite %airl' broad ban-in8 covera8e nationide&
the %inancial s'stem remains inaccessible to the (oorest (eo(le in
India.
Indian banking system
The ban-in8 s'stem has three tiers. These are the scheduled
commercial ban-sA the re8ional rural ban-s hich o(erate in rural
areas not covered b' the scheduled ban-sA and the coo(erative and
s(ecial (ur(ose rural ban-s.
Scheduled and non scheduled banks
There are a((ro?imatel' 9) scheduled commercial ban-s& Indian
and %orei8nA almost 2)) re8ional rural ban-sA more than 35) central
coo(erative ban-s& 2) land develo(ment ban-sA and a number o%
(rimar' a8ricultural credit societies. In terms o% business& the (ublic
sector ban-s& namel' the +tate #an- o% India and the nationaliCed
ban-s& dominate the ban-in8 sector.
LoIndia has an e?tensive ban-in8 netor-& in both urban and rural
areas. "ll lar8e Indian ban-s are nationaliCed& and all Indian
%inancial institutions are in the (ublic sector.
The Reserve #an- o% India is the central ban-in8 institution. It is the
sole authorit' %or issuin8 ban- notes and the su(ervisor' bod' %or
ban-in8 o(erations in India . It su(ervises and administers
e?chan8e control and ban-in8 re8ulations& and administers the
8overnment>s monetar' (olic'. It is also res(onsible %or 8rantin8
licenses %or ne ban- branches. 25 %orei8n ban-s o(erate in India
ith %ull ban-in8 licenses. +everal licenses %or (rivate ban-s have
been a((roved. Des(ite %airl' broad ban-in8 covera8e nationide&
the %inancial s'stem remains inaccessible to the (oorest (eo(le in
India.
The ban-in8 s'stem has three tiers. These are the scheduled
commercial ban-sA the re8ional rural ban-s hich o(erate in rural
areas not covered b' the scheduled ban-sA and the coo(erative and
s(ecial (ur(ose rural ban-s.
There are a((ro?imatel' 9) scheduled commercial ban-s& Indian
and %orei8nA almost 2)) re8ional rural ban-sA more than 35) central
coo(erative ban-s& 2) land develo(ment ban-sA and a number o%
(rimar' a8ricultural credit societies. In terms o% business& the (ublic
sector ban-s& namel' the +tate #an- o% India and the nationaliCed
ban-s& dominate the ban-in8 sector.
Local financing
the e?tent to
Cal financing
"ll sources o% local %inancin8 are available to %orei8n@(artici(ation
com(anies incor(orated in India& re8ardless o% the e?tent o% %orei8n
(artici(ation. Dnder %orei8n e?chan8e re8ulations& %orei8ners and
non@residents& includin8 %orei8n com(anies& reBuire the (ermission
o% the Reserve #an- o% India to borro %rom a (erson or com(an'
resident in India.
Regulations on Foreign Banks
/orei8n ban-s in India are subject to the same re8ulations as
scheduled ban-s. The' are (ermitted to acce(t de(osits and (rovide
credit in accordance ith the ban-in8 las and R#I re8ulations.
Currentl' about 25 %orei8n ban-s are licensed to o(erate in India.
/orei8n ban- branches in India %inance trade throu8h their 8lobal
netor-s.
RBI restrictions
The Reserve #an- o% India la's don restrictions on ban- lendin8
and other activities ith lar8e com(anies. These restrictions&
(o(ularl' -non as Econsortium 8uidelinesE seem to have outlived
their use%ulness& because the' hinder the availabilit' o% credit to the
non@%ood sector and at the same time do not %oster com(etition
beteen ban-s.
Indian vs Foreign banks
Most Indian ban-s are ell behind %orei8n ban-s in the areas o%
customer %unds trans%er and clearin8 s'stems. The' are hu8el'
over@sta%%ed and are unli-el' to be able to com(ete ith the ne
(rivate ban-s that are no enterin8 the mar-et. 6hile these ne
ban-s and %orei8n ban-s still %ace restrictions in their activities& the'
are ell@ca(italiCed& use modern eBui(ment and attract hi8h@caliber
em(lo'ees.
!overnment and RBI regulations
"ll commercial ban-s %ace sti%% restrictions on the use o% both their
assets and liabilities. /ort' (ercent o% loans must be directed to
E(riorit' sectorsE and the hi8h liBuidit' ratio and cash reserve
reBuirements severel' limit the availabilit' o% de(osits %or lendin8.
The R#I reBuires that domestic Indian ban-s ma-e !) (ercent o%
their loans at concessional rates to (riorit' sectors> selected b' the
8overnment. These sectors consist lar8el' o% a8riculture& e?(orters&
and small businesses. +ince 2ul' 1003& %orei8n ban-s have been
reBuired to ma-e 32 (ercent o% their loans to these (riorit' sector.
6ithin the tar8et o% 32 (ercent& to sub@tar8ets %or loans to the
small scale sector s (rice ill move
ith the mar-et. " beta less than 1 means the securit' ill be less
volatile than the mar-et. " beta 8reater than 1 indicates that the
securit'>s (rice ill be more volatile than the mar-et. /or e?am(le&
i% a stoc->s beta is 1.2 it>s theoreticall' 2)I more volatile than the
mar-et.
Man' utilities stoc-s have a beta o% less than 1. Conversel' most
hi8h@tech *"+D"J@based stoc-s have a beta 8reater than 1&
o%%erin8 the (ossibilit' o% a hi8her rate o% return but also (osin8
more ris-.
B$%&
#eta describes the relationshi( beteen the stoc-s return and the
mar-et inde? returns. This can be (ositive and ne8ative. It is the
(ercenta8e chan8e in the (rice o% the stoc- re8ressed s ).9:
Merrill L'nch 1.;5
*emont Minin8 ).35
Pes(i Co. 1.15
Peidmont *atural Has ).:
Jua-er +tate Cor(. ).0
Reebo-& IntlF 1.:
+muc-er& 2.M. ).0
Te?aco ).:
Tootsie Roll ).9
To's >R> Ds 1.!5
6end'>s Intl. 1.1
Man' lar8e bro-era8e %irms s second@lar8est ban- ith total assets o% about
Rs. 2&513.90 bn s stron8 cor(orate relationshi(s built u( over %ive decades&
entr' into ne business se8ments& hi8her mar-et share in various
business se8ments& (articularl' %ee@based services& and access to
the vast talent (ool o% ICICI and its subsidiaries. In October 2))1&
the #oards o% Directors o% ICICI and ICICI #an- a((roved the
mer8er o% ICICI and to o% its holl'@oned retail %inance
subsidiaries& ICICI Personal /inancial +ervices Limited and ICICI
Ca(ital +ervices Limited& ith ICICI #an-. The mer8er as a((roved
b' shareholders o% ICICI and ICICI #an- in 2anuar' 2))2& b' the
.i8h Court o% Hujarat at "hmedabad in March 2))2& and b' the
.i8h Court o% 2udicature at Mumbai and the Reserve #an- o% India in
"(ril 2))2. ConseBuent to the mer8er& the ICICI 8rou(>s %inancin8
and ban-in8 o(erations& both holesale and retail& have been
inte8rated in a sin8le entit'.
L/ree %loat holdin8 e?cludes all (romoter holdin8s& strate8ic
investments and cross holdin8s amon8 (ublic sector entities.
/ormulaG
Returns W
Current Close
Previous Close
/ormulaG
#eta W
* X?' @ X?X'
* X?
2
$ . The #an- also (rovides instant trans%er %und %acilit'
throu8h its branches. The #an- has been ran-ed 5th in the 2))5
#usiness Toda' surve' o% India>s #est #an-s.
3.e Introduction to 1I2"3" #"*4
1ija'a #an- as established on 23rd October 1031 b' late +hri
".#.+hett' and other enter(risin8 %armers in Man8alore& 4arnata-a.
The objective behind establishment o% the #an- as essentiall' to
(romote ban-in8 habit& thri%t and entre(reneurshi( amon8 the
%armin8 communit' o% Da-shina 4annada district in 4arnata-a +tate.
The ban- became a scheduled ban- in 1059.
Durin8 10:3@:9& nine smaller ban-s mer8ed ith 1ija'a #an- and
the #an- steadil' 8re into a lar8e "ll India ban-. 1ija'a #an- as
nationaliCed on "(ril 15& 109) and toda' the #an- has a netor- o%
013 branches that s(an all 29 states and 3 union territories in the
countr'.
1ija' #an- has been constantl' %ocusin8 on technolo8ical u(
8radation. "s on October 2))5& all the 013 branches have been
com(uteriCed& coverin8 0;I o% the ban->s total business.
The #an- has diversi%ied into ne areas such as credit card&
merchant ban-in8& hire (urchase and leasin8& and electronic
remittance services. 1ija'a #an- is one o% the %e ban-s in the
countr' to ta-e u( (rinci(al membershi( o% 1I+" International and
MasterCard International
1ija'a #an- has the hi8hest number o% branches in its home state
4arnata-a.
Durin8 the %irst Buarter o% %inancial 'ear 2))
2)); the ban- has
o(ened 1: #ranches. To ,?tension Counters u(8raded into %ull
%led8ed #ranch.
In line ith the (revailin8 trends& the ban- has been 8ivin8 8reater
thrust toards technolo8ical u( 8radation o% its o(erations. The
ban- has netor- o% 0!9 branches&
,?tension Counters and 1:9
"TMs.
300 branches& 35 e?tension counters and 5! o%%icers are %unctionin8
on C#+ (lat%orm.
RealiCin8 'our constantl' evolvin8 and diverse needs& the ban- has
diversi%ied too. ,nterin8 several ne areas such as credit card&
merchant ban-in8& hire (urchase and leasin8& and electronic
remittance services.
1ija'a #an- is one amon8 the %e ban-s in the countr' to ta-e u(
(rinci(al membershi( o% 1I+" International and MasterCard
International.
The drivin8 %orce behind 1ija'a #an->s ever' initiative has been its
11!)! stron8 dedicated or-%orce.
4+ Da'a A,a&(/-/
Tables and charts o% 6ee-l'& Monthl' and 3earl'
ith Inter(retation.
%able sho4ing 4eekly average price and Return of ICICI
and "ifty
Com(an'
ICICI *I/T3
Price
Return
• To measure the comparative beta analysis of selected Indian banks.
• To evaluate the correlation between nifty returns and ICICI bank returns.
• To evaluate the correlation between Nifty returns and HDFC returns.
• To evaluate the correlation between Nifty and Andhra bank returns.
• To evaluate the correlation between Nifty and Vijay bank returns.
Limitations
1. The data collected is only from secondary source.
2. The data which is collected for doing this report has been collected from Internet Websites where there can be some hitches.
3. The Time period taken for doing the data analysis has been from from NSE (Nifty) 2006-07.
1. b Data Collection Methods
For the purpose of the study was collected through secondary source of data collection method. Major source of data are published stock prices of HDFC, ICICI Bank AND NIFTY.
1.c Time Period:
I collected weekly average prices of HDFC, ICICI BANK AND NIFTY for the period of APR.
A STUDY ON
“SYSTEMATIC RISK OF SELECT BANKING SCRIPTS TRADED
IN NSE”
FROM
INDIA BULLS LTD
PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT
FOR
The Award of Deree of
MASTER!S IN BUSINESS ADMINISTRATION
DECLARATION
I hereby declare that this Project Report titled
“SYSTEMATIC RISK OF SELECT BANKING SCRIPS TRADED IN NSE” submitted by
me to the Department of Business Management, XXXXX, Hyderabad is a
bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/certificate or
published any time before.
PLACE:
DATE: (XXXX)
ACKNO"LEDGEMENT
I take this opportunity to thank ### of. XXXX, for his encouragement in doing the project work.
I would like to thank ### Fa$%&'( of MBA Dept, her guidance and suggestion.
I take the opportunity to express my deep and sincere gratitude to the management of
INDIA BULLS LTD for their gesture of allowing me to undertake this project and its arious
employees who lent their hand towards the completion this study.
!####)
"ontents
1. Introduction........................................................................................1
1.a Objectives....................................................................................11
1.b Data Collection Methods.................................................................12
1.c Time Period..................................................................................13
2. Literature Revie...............................................................................1!
"bout #eta $ De%inition& Theor'............................................................1!
3. Com(an' Pro%ile................................................................................2)
3.a Introduction o% *+,.......................................................................2)
3.b Introduction o% ICICI #an-..............................................................3!
3.c Introduction o% .D/C #an-.............................................................30
3.d Introduction to "ndhra #an-...........................................................!2
3.e Introduction o% 1I2"3" #"*4...........................................................!3
!. Data "nal'sis.................................................................................52
Tables and charts o% 6ee-l'& Monthl' and 3earl' ith Inter(retation...........52
5. Conclusion 7 +u88estion.....................................................................9)
:. Limitations........................................................................................91
;. Methodolo8'.....................................................................................92
9. #iblio8ra(h'......................................................................................93
*+ I,'rod%$'-o,
The Reserve #an- o% India s central ban-. Thou8h
(ublic sector ban-s currentl' dominate the ban-in8 industr'&
numerous (rivate and %orei8n ban-s e?ist. India>s 8overnment@
oned ban-s dominate the mar-et. Their (er%ormance has been
mi?ed& ith a %e bein8 consistentl' (ro%itable. +everal (ublic sector
ban-s are bein8 restructured& and in some the 8overnment either
alread' has or ill reduce its onershi(.
Private and foreign banks
The R#I has 8ranted o(eratin8 a((roval to a %e (rivatel' oned
domestic ban-sA o% these man' commenced ban-in8 business.
/orei8n ban-s o(erate more than 15) branches in India. The entr'
o% %orei8n ban-s is based on reci(rocit'& economic and (olitical
bilateral relations. "n inter@de(artmental committee a((roves
a((lications %or entr' and e?(ansion.
Capital adequacy norm
/orei8n ban-s ere reBuired to achieve an 9 (ercent ca(ital
adeBuac' norm b' March 1003& hile Indian ban-s ith overseas
branches had until March 1005 to meet that tar8et. "ll other ban-s
had to do so b' March 100:. The ban-in8 sector is to be used as a
model %or o(enin8 u( o% India>s insurance sector to (rivate domestic
and %orei8n (artici(ants& hile -ee(in8 the national insurance
com(anies in o(eration.
Banking
India has an e?tensive ban-in8 netor-& in both urban and rural
areas. "ll lar8e Indian ban-s are nationaliCed& and all Indian
%inancial institutions are in the (ublic sector.
RBI banking
The Reserve #an- o% India is the central ban-in8 institution. It is the
sole authorit' %or issuin8 ban- notes and the su(ervisor' bod' %or
ban-in8 o(erations in India . It su(ervises and administers
e?chan8e control and ban-in8 re8ulations& and administers the
8overnment>s monetar' (olic'. It is also res(onsible %or 8rantin8
licenses %or ne ban- branches. 25 %orei8n ban-s o(erate in India
ith %ull ban-in8 licenses. +everal licenses %or (rivate ban-s have
been a((roved. Des(ite %airl' broad ban-in8 covera8e nationide&
the %inancial s'stem remains inaccessible to the (oorest (eo(le in
India.
Indian banking system
The ban-in8 s'stem has three tiers. These are the scheduled
commercial ban-sA the re8ional rural ban-s hich o(erate in rural
areas not covered b' the scheduled ban-sA and the coo(erative and
s(ecial (ur(ose rural ban-s.
Scheduled and non scheduled banks
There are a((ro?imatel' 9) scheduled commercial ban-s& Indian
and %orei8nA almost 2)) re8ional rural ban-sA more than 35) central
coo(erative ban-s& 2) land develo(ment ban-sA and a number o%
(rimar' a8ricultural credit societies. In terms o% business& the (ublic
sector ban-s& namel' the +tate #an- o% India and the nationaliCed
ban-s& dominate the ban-in8 sector.
LoIndia has an e?tensive ban-in8 netor-& in both urban and rural
areas. "ll lar8e Indian ban-s are nationaliCed& and all Indian
%inancial institutions are in the (ublic sector.
The Reserve #an- o% India is the central ban-in8 institution. It is the
sole authorit' %or issuin8 ban- notes and the su(ervisor' bod' %or
ban-in8 o(erations in India . It su(ervises and administers
e?chan8e control and ban-in8 re8ulations& and administers the
8overnment>s monetar' (olic'. It is also res(onsible %or 8rantin8
licenses %or ne ban- branches. 25 %orei8n ban-s o(erate in India
ith %ull ban-in8 licenses. +everal licenses %or (rivate ban-s have
been a((roved. Des(ite %airl' broad ban-in8 covera8e nationide&
the %inancial s'stem remains inaccessible to the (oorest (eo(le in
India.
The ban-in8 s'stem has three tiers. These are the scheduled
commercial ban-sA the re8ional rural ban-s hich o(erate in rural
areas not covered b' the scheduled ban-sA and the coo(erative and
s(ecial (ur(ose rural ban-s.
There are a((ro?imatel' 9) scheduled commercial ban-s& Indian
and %orei8nA almost 2)) re8ional rural ban-sA more than 35) central
coo(erative ban-s& 2) land develo(ment ban-sA and a number o%
(rimar' a8ricultural credit societies. In terms o% business& the (ublic
sector ban-s& namel' the +tate #an- o% India and the nationaliCed
ban-s& dominate the ban-in8 sector.
Local financing
the e?tent to
Cal financing
"ll sources o% local %inancin8 are available to %orei8n@(artici(ation
com(anies incor(orated in India& re8ardless o% the e?tent o% %orei8n
(artici(ation. Dnder %orei8n e?chan8e re8ulations& %orei8ners and
non@residents& includin8 %orei8n com(anies& reBuire the (ermission
o% the Reserve #an- o% India to borro %rom a (erson or com(an'
resident in India.
Regulations on Foreign Banks
/orei8n ban-s in India are subject to the same re8ulations as
scheduled ban-s. The' are (ermitted to acce(t de(osits and (rovide
credit in accordance ith the ban-in8 las and R#I re8ulations.
Currentl' about 25 %orei8n ban-s are licensed to o(erate in India.
/orei8n ban- branches in India %inance trade throu8h their 8lobal
netor-s.
RBI restrictions
The Reserve #an- o% India la's don restrictions on ban- lendin8
and other activities ith lar8e com(anies. These restrictions&
(o(ularl' -non as Econsortium 8uidelinesE seem to have outlived
their use%ulness& because the' hinder the availabilit' o% credit to the
non@%ood sector and at the same time do not %oster com(etition
beteen ban-s.
Indian vs Foreign banks
Most Indian ban-s are ell behind %orei8n ban-s in the areas o%
customer %unds trans%er and clearin8 s'stems. The' are hu8el'
over@sta%%ed and are unli-el' to be able to com(ete ith the ne
(rivate ban-s that are no enterin8 the mar-et. 6hile these ne
ban-s and %orei8n ban-s still %ace restrictions in their activities& the'
are ell@ca(italiCed& use modern eBui(ment and attract hi8h@caliber
em(lo'ees.
!overnment and RBI regulations
"ll commercial ban-s %ace sti%% restrictions on the use o% both their
assets and liabilities. /ort' (ercent o% loans must be directed to
E(riorit' sectorsE and the hi8h liBuidit' ratio and cash reserve
reBuirements severel' limit the availabilit' o% de(osits %or lendin8.
The R#I reBuires that domestic Indian ban-s ma-e !) (ercent o%
their loans at concessional rates to (riorit' sectors> selected b' the
8overnment. These sectors consist lar8el' o% a8riculture& e?(orters&
and small businesses. +ince 2ul' 1003& %orei8n ban-s have been
reBuired to ma-e 32 (ercent o% their loans to these (riorit' sector.
6ithin the tar8et o% 32 (ercent& to sub@tar8ets %or loans to the
small scale sector s (rice ill move
ith the mar-et. " beta less than 1 means the securit' ill be less
volatile than the mar-et. " beta 8reater than 1 indicates that the
securit'>s (rice ill be more volatile than the mar-et. /or e?am(le&
i% a stoc->s beta is 1.2 it>s theoreticall' 2)I more volatile than the
mar-et.
Man' utilities stoc-s have a beta o% less than 1. Conversel' most
hi8h@tech *"+D"J@based stoc-s have a beta 8reater than 1&
o%%erin8 the (ossibilit' o% a hi8her rate o% return but also (osin8
more ris-.
B$%&
#eta describes the relationshi( beteen the stoc-s return and the
mar-et inde? returns. This can be (ositive and ne8ative. It is the
(ercenta8e chan8e in the (rice o% the stoc- re8ressed s ).9:
Merrill L'nch 1.;5
*emont Minin8 ).35
Pes(i Co. 1.15
Peidmont *atural Has ).:
Jua-er +tate Cor(. ).0
Reebo-& IntlF 1.:
+muc-er& 2.M. ).0
Te?aco ).:
Tootsie Roll ).9
To's >R> Ds 1.!5
6end'>s Intl. 1.1
Man' lar8e bro-era8e %irms s second@lar8est ban- ith total assets o% about
Rs. 2&513.90 bn s stron8 cor(orate relationshi(s built u( over %ive decades&
entr' into ne business se8ments& hi8her mar-et share in various
business se8ments& (articularl' %ee@based services& and access to
the vast talent (ool o% ICICI and its subsidiaries. In October 2))1&
the #oards o% Directors o% ICICI and ICICI #an- a((roved the
mer8er o% ICICI and to o% its holl'@oned retail %inance
subsidiaries& ICICI Personal /inancial +ervices Limited and ICICI
Ca(ital +ervices Limited& ith ICICI #an-. The mer8er as a((roved
b' shareholders o% ICICI and ICICI #an- in 2anuar' 2))2& b' the
.i8h Court o% Hujarat at "hmedabad in March 2))2& and b' the
.i8h Court o% 2udicature at Mumbai and the Reserve #an- o% India in
"(ril 2))2. ConseBuent to the mer8er& the ICICI 8rou(>s %inancin8
and ban-in8 o(erations& both holesale and retail& have been
inte8rated in a sin8le entit'.
L/ree %loat holdin8 e?cludes all (romoter holdin8s& strate8ic
investments and cross holdin8s amon8 (ublic sector entities.
/ormulaG
Returns W
Current Close
Previous Close
/ormulaG
#eta W
* X?' @ X?X'
* X?
2
$ . The #an- also (rovides instant trans%er %und %acilit'
throu8h its branches. The #an- has been ran-ed 5th in the 2))5
#usiness Toda' surve' o% India>s #est #an-s.
3.e Introduction to 1I2"3" #"*4
1ija'a #an- as established on 23rd October 1031 b' late +hri
".#.+hett' and other enter(risin8 %armers in Man8alore& 4arnata-a.
The objective behind establishment o% the #an- as essentiall' to
(romote ban-in8 habit& thri%t and entre(reneurshi( amon8 the
%armin8 communit' o% Da-shina 4annada district in 4arnata-a +tate.
The ban- became a scheduled ban- in 1059.
Durin8 10:3@:9& nine smaller ban-s mer8ed ith 1ija'a #an- and
the #an- steadil' 8re into a lar8e "ll India ban-. 1ija'a #an- as
nationaliCed on "(ril 15& 109) and toda' the #an- has a netor- o%
013 branches that s(an all 29 states and 3 union territories in the
countr'.
1ija' #an- has been constantl' %ocusin8 on technolo8ical u(
8radation. "s on October 2))5& all the 013 branches have been
com(uteriCed& coverin8 0;I o% the ban->s total business.
The #an- has diversi%ied into ne areas such as credit card&
merchant ban-in8& hire (urchase and leasin8& and electronic
remittance services. 1ija'a #an- is one o% the %e ban-s in the
countr' to ta-e u( (rinci(al membershi( o% 1I+" International and
MasterCard International
1ija'a #an- has the hi8hest number o% branches in its home state
4arnata-a.
Durin8 the %irst Buarter o% %inancial 'ear 2))
2)); the ban- haso(ened 1: #ranches. To ,?tension Counters u(8raded into %ull
%led8ed #ranch.
In line ith the (revailin8 trends& the ban- has been 8ivin8 8reater
thrust toards technolo8ical u( 8radation o% its o(erations. The
ban- has netor- o% 0!9 branches&
,?tension Counters and 1:9"TMs.
300 branches& 35 e?tension counters and 5! o%%icers are %unctionin8
on C#+ (lat%orm.
RealiCin8 'our constantl' evolvin8 and diverse needs& the ban- has
diversi%ied too. ,nterin8 several ne areas such as credit card&
merchant ban-in8& hire (urchase and leasin8& and electronic
remittance services.
1ija'a #an- is one amon8 the %e ban-s in the countr' to ta-e u(
(rinci(al membershi( o% 1I+" International and MasterCard
International.
The drivin8 %orce behind 1ija'a #an->s ever' initiative has been its
11!)! stron8 dedicated or-%orce.
4+ Da'a A,a&(/-/
Tables and charts o% 6ee-l'& Monthl' and 3earl'
ith Inter(retation.
%able sho4ing 4eekly average price and Return of ICICI
and "ifty
Com(an'
ICICI *I/T3
Price
Return