Main Article Content
Portfolio analysis is an evaluation of an investment portfolio to determine if it is meeting an investor's needs, whether the investor is a multinational corporation or a teacher planning for retirement. The analysis provides a breakdown of current assets in the portfolio, along with a discussion of their current and historic performance to see if the investor is making smart decisions about resource allocation. The analysis can offer recommendations for improving the mixture of the portfolio, taking the unique needs of the investor into account. The success of a product line is often measured in terms of its profitability. However, profits should not be the only basis for mapping product success. Organizations also need to take the risk-factor for a product into account so that they can make an accurate assessment of their product-line portfolios. Ideally, products with low margins and high volatility should be divested as they clearly overexpose the company to a high level of risk without sufficient returns. Similarly, low margin, low-volatility product lines do not expose the company to excessive risks and can be considered if the profitability can be improved. So, on what basis should companies assess the risk vis-à-vis return profile of their product portfolio? Econometric modeling can be used to estimate the risk/return profile of products. Besides performing the usual commercial banking functions, banks in developing countries play an effective role in their economic development. The portfolio analysis of banking sector at present is playing very vital role in the development of economy. Hence, the present study focuses on portfolio analysis of some selected banks in India. Study based on both Primary and Secondary sources.