A COMPARATIVE ANALYSIS OF RISK AND RETURN OF SELECTED BANKING STOCKS IN INDIA

This study presents a comparative analysis of the risk and return of three selected banking stocks in India -Axis Bank, Kotak Mahindra Bank, and Punjab National Bank -for the period 2023 to 2026.Using secondary data on monthly closing stock prices sourced from the National Stock Exchange, the study applies statistical tools, namely Return, Standard Deviation, Correlation, and Beta, to evaluate the performance, risk, and market sensitivity of each stock.The findings indicate that Axis Bank delivered comparatively stronger overall returns with a moderate risk level (Standard Deviation = 117.68),Punjab National Bank exhibited the lowest volatility and the most stable performance (Standard Deviation = 24.55),while Kotak Mahindra Bank recorded the highest volatility and risk (Standard Deviation = 450.04)among the three stocks.The correlation analysis revealed a strong positive relationship between Punjab National Bank and Axis Bank (r = 0.77), while Kotak Mahindra Bank moved largely independently of the other two stocks, showing mild negative correlations with both.Beta values for all three stocks were close to zero, indicating low systematic risk and limited sensitivity to broader market movements over the study period.The study concludes that the three selected banking stocks display distinct risk-return characteristics and offers suggestions to help investors align their stock selection with their individual risk appetite and diversification needs.