International Journal of Engineering Research

Volume No.5, Issue No.4, pp : 293-295 1 April 2016

ISSN:2319-6890)(online),2347-5013(print)

Performance of Share Price in Banking Sector( With Special reference to Public Sector Banks & Private Sector Banks in
India)

Dr. V.N. Sailaja, Dr. BinduMadhavi

KLU Business School, K L University
drvedalasailaja@kluniversity.in, dr.bindumadhavi@kluniversity.in
ABSTRACT :The economic development of a country mostly
depends upon the efficient banking system. The banking sector
is the core segment in deciding the progress of the entire
economy of the country. Activities of a modern economy are
significantly influenced by the functions and services of banks
and became an indispensable part of socio-economic life of the
people. Indian banking system has undergone significant
transformation following financial sector reforms. The coexistence of both public and private sector banks drives the
banking sector to more competitive position. This study strives
to analyse the share price performance of public sector and
private sector banks and to find consistency among the sectors
in terms of its share price. It also makes a few suggestions to
investors to avoid the risk involved in their portfolio
construction.
Key Words: consistency, performance,
INTRODUCTION
The Indian financial system comprises a vast network of
different banks. Banks are the backbone of the economy as they
play significant role to attain stable prices, high level of
employment and sound economic growth. The rapid growth in
the various sectors of the economy can be brought through
efficient, effective, disciplined banking system. The banks listed
in stock exchanges are aimed to track the share price movements
as
investors are very keen about the share price
movements and market trends
REVIEW OF LITERATURE
Subasi (2011) made a study on the stock market reaction to
aggregate earnings and also found that there is no relationship
between dispersion in earnings and stock market returns using
monthly and quarterly time series of seasonally differenced
earnings and dispersion in these differences.
Cready and Gurun (2010),made a study on factors influencing
investment in equity and found that a person or entity invests in
equity securities (shares)
of companies for a host of reasons. It may be for safety cushion,
cyclical cash needs, investment for a return, investment for
influence, or purchase for control
B Satish Kumar( 2008) conducted a study on A stable and
efficient banking sector is as essential precondition to increase
the economic level of a country. The objective of this study is
to compare the efficiency of the banking sector in India and
found priority areas for different banks which can improve the
performance.
Brigesh K. Saho, Anandeep Singh (2007), attempts tofind the
performance trends of commercial banks in India and found that
capital market is a link between market for corporate control and
efficiency of private enterprise.
IJER@2016

Skousen et al (2007), focused on value for equity for

shareholders and concluded that an investor undertakes thorough
financial evaluation of the available options before deciding to
invest in stocks of a particular company.
METHODOLGY
Descriptive research methodology is adopted in this resech and
sample of 4 public sector and 4 private sector banks are
considered for analysis. Secondary data is used for analysis and
it was collected from yahoo finance and money control .com.
OBJECTIVES
To analyse the share performance of public sector
banks and private sector banks.
To find out the consistency among public sector banks
and private sector banks in terms of share price.

To find out the best performing bank out of selected

banks
ANALYSIS
SBI

Avg
Mean

201011

201112

20112012

201213

201314

201415

Avg

-2.2

6.83

2.67

-1.65

0.31

-0.06

0.98

1277.
1966.50 2697.84 2119.1 2141.1 1788.7 1998.4
5

SD

228.8
287.52
6

Beta

1.07

1.07

0.91

1.07

1.16

0.97

1.04

CV

0.18

0.15

0.12

0.15

0.08

0.13

0.13

323.68 322.19 161.30 230.22 258.96

The share price showed the highest Average during the period
2010-2011. The period 2011-2012 showed the greater volatility,
since the mean value of share price reached the highest level.
From the beta value it is concluded that the stock price during
the period in all the years except 2011-2012 & 2014-2015 is an
aggressive stock since the beta value is greater than 1
BANK OF BARODA
2010
-11

201112

SD

2009
-10
0.52
261.
09
32.5
6

9.54
489.
25
83.8
5

Beta

1.00

CV

0.68

Avg
Mean

doi : 10.17950/ijer/v5s4/416

3.71
840.6
5
107.8
8

2012
-13
1.32
793.
34
76.2
4

2013
-14
0.69
739.
23
76.7
6

0.84

0.59

0.68

1.75

2.25

1.59

201415
1.56

AVg

599.50

2.05
620.5
1

80.25

76.26

1.54

1.26

0.98

1.60

1.67

1.59

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International Journal of Engineering Research

Volume No.5, Issue No.4, pp : 293-295 1 April 2016

ISSN:2319-6890)(online),2347-5013(print)

The share price showed the highest Average during the period
2010-2011. The period 2011-2012 showed the greater volatility ,
since the mean value of share price reached the highest level and
the value of co-efficient of variation for share also reached the
maximum level. From the beta value it is concluded that the
stock price during the period in all the years except 2011-2012 &
2014-2015 is more aggressive stock since the beta value is
greater than 1.
ANDHRA BANK
200910

201011

201112

201213

201314

201415

-2.57

9.36

3.2

-0.99

-1.24

-2.57

56.1

97.5

147

121

106

65.5

11.8

16.7

13.8

18.8

10

37.8

0.70

1.38

0.76

1.04

1.49

0.8

0.21

0.17

0.09

0.16

0.10

0.58

Avg
Mea
n
SD

Av
g
0.8
7

CV

99
18.
2
1.0
4
0.2
2

The share price showed the highest Average during the period
2010-2011. The period 2011-2012 showed the greater volatility,
since the mean value of share price reached the highest level.
From the beta value it is concluded that the stock price during
the period in all the years except 2011-2012 & 2014-2015 is
more aggressive stock since the beta value is greater than 1.
BANK OF INDIA
200809
Average
ret

200910

201011

201112

201213

201314

201011

201112

Avg
Mea
n

-1.55
1100.6
8

6.25
1598.1
6

1.97
2159.
62

SD

201.5

212.5

Beta

0.87

0.64

SD

36.65

45.53

55.92

57.54

33.16

50.83

46.60

Beta

1.10

0.98

1.09

1.06

1.14

1.69

1.18

CV

0.14

0.13

0.13

0.16

0.11

0.24

0.15

The share price showed the highest Average during the period
2010-2011. The period 2011-2012 showed the greater volatility,
since the mean value of share price reached the highest level.
From the beta value it is concluded that the stock price during
the period in all the years except 2010-2011 is more aggressive
stock since the beta value is greater than 1.
ICICI
200910
-5.59

201011
10.5

201112
1.62

201213
-1.1

201314
1.72

201415
2.20

Avg

Mea
n
SD

535.7

798.7

1019.7

925.6

184.7

118.8

107.65

133.

1004.3
8
114.3

1045.8
5
123.14

Beta

0.97

1.30

1.05

1.24

1.23

1.18

888.3
5
13
.
1.16

CV

0.34

0.15

0.11

0.14

0.11

0.12

0.15

1.5

The mean value of share price hits lowest value during the

0.65

0.76

0.08

0.91

0.09

0.06

0.25

Avg

1.7
617.
87
47.9
9

1.8
713.
53
47.7
1

1.47
592.
13
101.
05

0.67

0.64

0.63

0.72

0.09

0.08

0.07

0.18

0.30

215.80

0.58

1.7
474.
98
42.1
5

0.17

314.98

0.73

10.6
708.
68
119.
87

0.39

361.21

1.10

2014
-15

CV

432.53

262.6

2013
-14

1.52

347.81

45.7

2012
-13

1.31

263.62

0.93
322.6
6

55.7

2011
-12

Beta

-0.54

0.79
1181.
51

KOTAK MAHENDRA

SD

-0.84

1.75
658.
66

2010
-11

Mean

-1.49

1.71
611.
25

Avg

2009
-10

AVG

3.24

2014
-15

0.13

-2.8
582.
24
172.
16
0.44

4.90

IJER@2016

0.18

2013
-14

188.5

2012
-13
5.41
960.
71
871.
7

The share price showed the highest Average during the period
2010-2011. The period 2011-2012 showed the greater volatility,
since the mean value of share price reached the highest level.
From the beta value it is concluded that the stock price during
the period in all the years except 2011-2012 is more defensive
stock since the beta value is lower than 1.

-4.3
455.
47
176.
43

0.32

Avg

200910

CV

Beta

Mean

period 2009-2010, since the economic meltdown affected the

Indian share market drastically. The co efficient of variation
showed the lowest value during the year 2011-2012and 20122013 which indicates in those years the volatility is low
compared to the remaining period of study.
HDFC

Avg

The mean value of share price hits lowest value during the
period 2009-2010, since the economic meltdown affected the
Indian share market drastically. The co efficient of variation
showed the lowest value from 2012-2013 to 2014-2015 which
indicates in those years the volatility is low compared to the
previous years of study. Stock is a defensive stock since the beta
value is a least value compared to all other stocks. Because of
global meltdown the stock did not give positive Averages during
2009-2010
ING VYSYA
200910

201011

201112

201213

201314

201415

Avg

Avg
Mea
n

-6.80

7.12

1.75

1.21

4.11

1.82

192.7

243.12

346.8

327.6

448.5

568.9

1.53
354.6
5

SD

66.43

54.23

38.43

24.35

89.79

60.45

55.61

Beta

0.68

0.30

0.81

0.74

0.85

0.98

0.73

CV

0.34

0.22

0.11

0.07

0.20

0.11

0.18

The share price showed the highest Average during the period

doi : 10.17950/ijer/v5s4/416

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International Journal of Engineering Research

Volume No.5, Issue No.4, pp : 293-295 1 April 2016
2013-2014and negative in 2009-2010. From the beta value it is
concluded that the stock is a defensive stock since the beta value
is lower than 1during the period in all the years
COMPARISON
Name

Avg SD

Avg R

Avg CV

ICICI

130.34

1.57

0.15

HDFC

262.65

0.79

0.25

Kotak

101.05

1.47

0.18

ING

55.61

1.53

0.17

SBI

258.96

0.98

0.13

BOB

76.26

2.05

1.5

AB

18.23

0.87

0.21

BOI

46.60

0.93

0.14

The above table shows that SBI stands in No. 1 rank in terms of
consistency and followed by Bank of India among the selected
banks.
PRIVATE SECTOR VS PUBLIC SECTOR
Average CV

SD of CV

VOLATILITY

Private

0.1875

0.0434933

0.005125734

Public

0.495

0.6709446

0.07907158

From the above table it is clear that the consistency among

private sector banks in terms of its share price is better than the
public sector banks, since the volatility test showed lower value
FINDINGS
Bank of Baroda has Highest Average Average
compared to other selected banks. But its Coefficient of variance
is very high which represents as most inconsistent share among
all shares.
Co efficient of variance is lowest for SBI share which
shows the lowest volatility followed by Bank of India among
selected banks. But as a whole the private sector consistency
level is better than public sector.
SUGGESTIONS
Investor should construct a good portfolio in order to
reduce risk in security trading
Investors need to analyse the company, industry and
market before investing in shares to minimise the risk and
maximise the Average on investment.

IJER@2016

ISSN:2319-6890)(online),2347-5013(print)

They are advised to check the consistency in terms of

its performance.
The market is volatile and it is influenced by many
factors. Hence the investors are to be cautious for analysing and
predicting the stock movement.
CONCLUSION
Investment in stock market involves high risk, so every investor
before making investments need to study the stock price
movement and its consistency.
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