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INVESTMENT EFFICIENCY IN THE INDIAN BANKING SECTOR: A QUANTITATIVE ANALYSIS OF RETURN, RISK, AND SHARPE RATIOS

📘 Volume 12 📄 Issue 7 📅 july 2025

👤 Authors

Mr. Venkata Rao Valluri, Mr. S. Pavan Kumar 1
1. Department of Management Studies. Madanapalle Institute of Technology & Science, Department of management studies, Madanapalli , Andhra Pradesh

📄 Abstract

This study examines the return, risk, and Sharpe ratio of selected private and public sector bank stocks in India over the period 2015?2024. The objective is to assess the risk-return efficiency and identify the most stable and rewarding investment options. Data analysis reveals that ICICI Bank offered the highest return among private banks, while Kotak Mahindra had the best risk-adjusted performance. Among public sector banks, Indian Bank showed the highest return but with extreme volatility, whereas Canara Bank offered a balanced performance. ANOVA results indicated no significant difference between mean returns and risks in both sectors. Sharpe ratio analysis further highlighted Kotak Mahindra and HDFC as top performers in the private sector, and Canara Bank in the public sector. NIFTY consistently served as a strong benchmark. The study provides insights into the relative performance of banking stocks for investors. Findings support strategic investment decisions based on risk-adjusted metrics.

🏷️ Keywords

Return Risk and the Sharpe ratio Private sector banks and Public sector banks in ANOVA Bank Nifty index. Risk-adjusted performance

📚 How to Cite:

Mr. Venkata Rao Valluri, Mr. S. Pavan Kumar , INVESTMENT EFFICIENCY IN THE INDIAN BANKING SECTOR: A QUANTITATIVE ANALYSIS OF RETURN, RISK, AND SHARPE RATIOS , Volume 12 , Issue 7, july 2025, EPRA International Journal of Economics, Business and Management Studies (EBMS) ,

🔗 PDF URL

https://cdn.eprapublishing.org/article/202507-07-022996.pdf

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