India is one of the emerging economies, which has witnessed significant developments in the stock markets during the liberalization policy initiated by the government. However, investing in shares include high risks which can be guided but not controlled. Most of these risks affect the market or the economy and require investors to adjust portfolios or ride out the storm. This paper analyzes the risk and return in banking sector taking Nifty Index as the benchmark. The study compares the performance of the 50 stocks in the NSE. Indian banking industry, the backbone of the country’s economy has always played a positive key role in prevention the economic disaster from reaching horrible volume in the country. Risk & Return is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. It has achieved enormous appreciation for its strength, particularly in the wake of some of the worldwide economic disasters. NSE Shares have proved to be more volatile than the pure diversified equity funds which make some of them a high-risk proposition. The study evaluates the performance of stocks mainly to identify the required rate of return and risk of a particular stock based upon different risk elements prevailing in the market and other economic factors.