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International Journal of Contemporary Research in Multidisciplinary

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International Journal of Contemporary Research In Multidisciplinary, 2025;4(1):66-75

Evaluating the Risk-Return Profiles of Indian Banking Stocks: An Empirical Analysis

Author Name: Malathi;   Venkata Rao Valluri;  

1. Student of the Department of Management Studies, Madanapalle Institute of Technology & Science, Madanapalle, Andhra Pradesh, India

2. Assistant Professor, Department of Management Studies, Madanapalle Institute of Technology & Science, Madanapalle, Andhra Pradesh, India

Abstract

This study examines the return and risk profiles of selected banking stocks in the public and private sectors during the period 2019-2024. The analysis employs various risk-return metrics, including Sharpe Ratio, Treynor Ratio, and return-risk tradeoff. The results indicate that ICICI Bank and Bank of Baroda offer the best risk-return tradeoffs in the private and public sectors, respectively. Canara Bank and Axis Bank also emerge as attractive investment options in the public and private sectors, respectively. In contrast, HDFC Bank, Kotak Mahindra Bank, and Punjab National Bank exhibit lower risk-adjusted returns. The study provides insights for investors seeking to optimize their portfolios by balancing risk and return.

Keywords

Banking Stocks, Risk-Return Analysis, Sharpe Ratio, Treynor Ratio, Return-Risk Tradeoff.