A Comparative Study on Financial Performance Evaluation of selected Public Sector Banks in India using Camel Model

- Dhwani Buch, Student Faculty of Management, GLS University

- Ashok Bantwa, Assistant Professor, Faculty of Management, GLS University

- Hiral Virani, Assistant Professor, Faculty of Management, GLS University.

Abstract:

Camel approach is significant tool to assess the relative financial strength of a bank and to suggest necessary measures to improve by weaknesses of a bank. In India, RBI adopted this approach in 1996 followed on the recommendations of Padmanabham Working Group (1995) committee. In the present study, an attempt has been made to rank the various commercial banks operating in India. The banks in India have been categorized into Public sector and Private sector banks. The sample of selected banks consists of 25 Public Sector, 18 Private Sector, and 8 foreign banks. For the purpose of ranking, Camel model approach has been applied, incorporating important parameters like Capital Adequacy, Assets Quality, Management Efficiency, Earnings Quality and Liquidity. The finding of the study shows that financial performance of five public sector banks in India using CAMEL model, Canara bank is the best performer which was followed by Punjab National Bank and State Bank of  India, whereas the least ranked bank was Bank of Baroda and Bank of India.

Keywords:

Comparative Study, Financial Performance, Public Sector Banks, CAMEL

Model

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