International Journal of Applied Business and Economic Research 155 A Comprehensive LR Model for Predicting Bank’s Stock Performance in Indian Stock Market Nataraja N.S 1 , Nagaraja Rao Chilale 2 and Ganesh L 3 1 Alliance University, Bangalore, India 2 Vijaya College, Bangalore University, Bangalore, India 3 Associate professor, Christ University, Bangalore, India AbstrAct The study focusses on developing a Logistic Regression model to distinguish between “Good” and “Poor” Performance of Bank-stocks which are traded in Indian stock market with regard to the financial ratios. The study- sample comprises of financialratios of 40 nationalised and private banks, for a period of six years. The study ascertains and scrutinizes eleven financial ratios that can categorize the Banksbroadly into two categories as “good” or “poor”, up to the accuracy level of 78 percent, based on their rate of return. First, the study predicts the performance of banks by using financial ratios and tries to build the goodness of fit by using Logistic Regression approach. The study also emphasizes that this model can enrich an investor’s ability to forecast the price of various stocks. However, the paper confers the real-world implications of Logistic Regression model to envisage the performance of Banks in the stock market. The study reveals that the model could be useful to potential investors, fund managers, and investment companies to improve their strategies and to select the ‘out-performing’ Bank-stocks. Keywords: Stock performance, logistic regression, market rate of return, key financial ratios, NIFTY, SENSEX. IntroductIon 1. The Financial stability of a country can be significantly determined by studying the Performance of the banking sector in stock market. In addition to this, involvement of high technology and globalization has made stock market, a highly competitive. All organizations regardless of type of business are affected by this involvement of high technology and globalization. Investors should have virtuous knowledge about International Journal of Applied Business and Economic Research SERIALS PUBLICATIONS PVT. LTD. New Delhi, India ISSN : 0972-7302 International Journal of Applied Business and Economic Research ISSN : 0972-7302 available at http: www.serialsjournal.com „ Serials Publications Pvt. Ltd. Volume 15 • Number 21 • 2017