BBA LLB Semester – IV

Economics Research Project

‘Statistical Analysis of top 50 scheduled banks in India based

on revenue and market share’

Submitted to:

Prof. Ganesh Munnorcode

School of Law, NMIMS

Submitted by:

Abhijeet Peter

SAP ID – 81022100185
 INTRODUCTION

In this research project the researcher would be analysing different sources of revenue gained
by top 50 scheduled banks in India based on revenue generated from interested earned on
advances and bills, investments, balances, commission and brokerage, sale of investments,
revaluation of assets, exchange and finally the market power held up by each bank.

OBJECTIVE OF THE STUDY

The objective is to find out whether different sources of revenue generated by a bank directly
affects the market holding of the bank and also to study the levels of correlation the Market
Cap has with each variable of sources of revenue generation.

HYPOTHESIS

H0: Amount of revenue generated does not directly affects the market capture of a bank.

H1: Amount of revenue generated directly affects the market capture of a bank.
 Contents of the excel file

The Excel file contains total of 5 sheets :-

Sheet 1 – Data: It contains the main dataset which shows you revenue generated by top 50
scheduled banks in India and it also tells you different sources of revenue which are namely,
interested earned on advances and bills, investments, balances, commission and brokerage, sale
of investments, revaluation of assets and exchange. The last column shows you the market
holding of each bank.

Sheet 2 – Descriptive Statistics: It shows you the descriptive statistics of the whole data
consisting of 8 variables and the market cap.

Sheet 3 – Regression: It shows you the dependency of market cap with revenue generated
from income on investments. Market Cap being the dependent variable and revenue from
investments being the independent variable.

Sheet 4 – Correlation: It shows you the correlation of Market Cap with different variables
along with the scattered chart.

Sheet 5 – Pivot Charts: It contains pivot chart that shows you the following data in a graphical
chart-

a) Which bank earns a higher revenue based on ‘interest earned on advances and bills’
b) Which bank has higher ‘commission and brokerage’
c) Which bank has higher ‘profit on sale of assets’
d) Which bank has higher profit on revaluation

Sheet 6 – Graphs: It gives you visual representation of the dataset in the form of bar graphs.
 ANALYSIS OF THE DATASET

Sheet 2: Descriptive Statistics –

Column 1 – Interest earned on advances and bills

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 17045.06502,
which is the average of the total no. of revenues earned by interest earned on advances
and bills of different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 5069.3408, which is the middlemost amount of the total no. of revenues earned
by interest earned on advances and bills of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on advances
and bills differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 30521.02716, which means there is
variation of 30521.02716 from the mean which is 17045.06502.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 13.92486992.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
3.367765916.
Column 2 – Income on Investments

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 6475.431819,
which is the average of the total no. of revenues earned by income on investments of
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 1478.303314, which is the middlemost amount of the total no. of revenues
earned by income on investments of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on income on
investments differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 13258.21872, which means there is
variation of 30521.02716 from the mean which is 1478.303314.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 25.93095206.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
4.617074445.

Column 3 – Interest on balances

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 590.2454826,
which is the average of the total no. of revenues earned by interest on balances of
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
 median is 220.2669, which is the middlemost amount of the total no. of revenues earned
by interest on balances of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on interest on
balances differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 873.0705877, which means there is
variation of 873.0705877 from the mean which is 590.2454826.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 6.755802586.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
2.375404124.

Column 4 – Commission and Brokerage

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 2228.217883,
which is the average of the total no. of revenues earned by commission and brokerage of
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 633.9723, which is the middlemost amount of the total no. of revenues earned
by commission and brokerage of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on
commission and brokerage differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 4845.129015, which means there is
variation of 4845.129015from the mean which is 2228.217883.
 e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 12.13791708.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
3.437135353.

Column 5 – Profit on sale of Investment

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 619.8064051,
which is the average of the total no. of revenues earned by profit on sale of investment of
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 243.5663, which is the middlemost amount of the total no. of revenues earned
by profit on sale of investment of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on profit on
sale of investment differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 930.4357126, which means there is
variation of 930.4357126 from the mean.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 3.259395013.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
2.014112117.
Column 6 – Profit on Revaluation

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 158.8597742,
which is the average of the total no. of revenues earned by profit on revaluationof
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 36.2465, which is the middlemost amount of the total no. of revenues earned
by profit on revaluation of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on profit on
revaluation differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 294.7811334, which means there is
variation of 294.7811334from the mean.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 11.00865824.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
3.128643131.

Column 7 – Profit on sale of Assets

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 9.155641551,
which is the average of the total no. of revenues earned by profit on sale of assets of
different banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 1.2005, which is the middlemost amount of the total no. of revenues earned by
profit on sale of assets of different banks.
 c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on profit on
sale of assets differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 17.67653405, which means there is
variation of 17.67653405from the mean.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 14.81541879.
f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
3.591520617.

Column 8 – Profit on exchange

a) Mean: Mean is nothing but the average of the given set of values. It denotes the equal
distribution of values for a given data set. In the given data set the mean is 741.5524323,
which is the average of the total no. of revenues earned by profit on exchange of different
banks.
b) Median: The median of a set of data is the middlemost number or centre value in the set.
The median is also the number that is halfway into the set. In the given data set the
median is 209.8949, which is the middlemost amount of the total no. of revenues earned
by profit on exchange of different banks.
c) Mode: The most frequent number occurring in the data set is known as the mode. In the
given data set Mode cannot be ascertained as the amount of revenue earned on profit on
exchange differs from each bank.
d) Standard Deviation: Standard Deviation is a measure which shows how much variation
from the mean exists. The standard deviation indicates a “typical” deviation from the
mean. In the given data set the standard deviation is 1065.399136, which means there is
variation of 1065.399136 from the mean.
e) Kurtosis: Kurtosis is a measure of the tailedness of a distribution. Tailedness is how often
outliers occur. In the given dataset, Kurtosis is 1.619124619.
 f) Skewness: Skewness is a measure of the asymmetry of a distribution. A distribution is
asymmetrical when its left and right side are not mirror images. A distribution can have
right (or positive), left (or negative), or zero skewness. In the given data set, Skewness is
1.638445072.

Sheet 3: Regression –

Regression analysis is used to estimate the relationships between two or more variables. The
Dependent Variable is the market capture of the banks. The Independent Variable is the revenue
earned by investments.

Multiple R is the Correlation Coefficient that measures the strength of a linear relationship
between two variables. The larger the absolute value, the stronger is the relationship. 1 means a
strong positive relationship, -1 means a strong negative relationship and 0 means no relationship
at all. In the given dataset Multiple R is 0.447864527 which shows a positive relation between
income on investments and market cap.

R Square signifies the Coefficient of Determination, which shows the goodness of fit. It shows
how many points fall on the regression line. In the given dataset it is 0.647524955 which shows a
moderate correlation between the variables.

ANOVA stands for Analysis of Variance. It gives information about the levels of variability
within your regression model.

The coefficients for each explanatory variable tell us the average expected change in the
response variable, assuming the other explanatory variable remains constant.

Significance F indicates whether your linear regression model provides a better fit to the data
than a model that contains no independent variables. If the p-value is smaller than 0.05, then the
model is significant. It is 0.001251488 in the given data.

P-Value is the probability of obtaining results at least as extreme as the observed results of a
statistical hypothesis test, assuming that the null hypothesis is correct. A smaller pvalue means
that there is stronger evidence in favor of the alternative hypothesis.

Thus we observe from the Significance F figure and the P-value figure that revenue generated
from income on investments has a higher correlation to Market Cap.
Sheet 4: Correlation –

Correlation is used to denote association between two quantitative variables. We also assume
that the association is linear, that one variable increase or decreases a fixed amount for a unit
increase or decrease in the other.

There is a positive correlation of 0.478577358 between interest earned on advances/bills and the
Market Cap, which means higher the interest earned by bank higher the market capture. The
same goes with all the other variables, higher the revenue generated from each variable higher
would be the market capture by a bank.

CONCLUSION

The findings in the paper prove the alternate hypothesis correct i.e. Amount of revenue generated
directly affects the market capture of a bank.