A Study on Risk and Return Analysis on Indian Banking Sector

A Study on Risk and Return Analysis on Indian  Banking Sector

Boby, Himanshi Sharma

Under the guidance of Ms. Milan Yadav

Master of Business Administration, School of Finance & Commerce

GALGOTIAS UNIVERSITY

ABSTRACT
 

Indian companies play an important role in the country's economy and serve as an i mportant defense against economic crisis. Risk is defined as the possibility of a neg ative impact on assets or value resulting from current processes or future events an d is praised for business recovery, especially since the recent global economic crisis pushed other countries' companies to the point of collapse. .

The Indian market is known for its high volatility, exceeding other global markets. Ma rket risk reflects the tendency for stock prices to decline due to changes in market ris

k. Although banking and financial services funds have historically provided good risk

adjusted returns, there is risk in the portfolio as some funds invest heavily in one pro duct. The market value of these investments will vary depending on the business ow ner's financial and economic performance and political, tax and market conditions.

Business risks include market prices, interest rates, exchange rates and commodity prices. Banks are important for supporting economic growth, but they have proven to be more volatile than other sources of investment, making them riskier capital. Altho ugh stock investments generally provide higher returns, unusually high returns may not be sustainable, resulting in price instability and thus lower interest rates.

This study aims to analyze the performance of selected banks in the Indian banking sector in measuring risk and return over a specific period of time.