Journal
| Title | A Study on Financial Performance of Commercial Banks in India: Application of Camel Model | |
| Author's Name | Rohit Bansal and Anoop Mohanty | |
| ISSN | 0974-7281 | |
| Page(s) | 60-79 | |
| Volume No. | 5 | |
| Issue Month | July,2013 | |
| Keywords | Asset Quality, Basel Norms, Capital Adequacy Ratio, Liquidity, NPA | |
| Abstract | In today’s scenario, the banking sector is one of the fastest growing sectors and a lot of funds are invested in banks. The banking system is becoming more and more complex and therefore there is a strong need to evaluate performance of the banks. There are various models of evaluating the performance of the banks. In this study we have discussed the CAMEL Model to evaluate the performance of the selected banks. This model measures the performance of the banks for the parameters comprising of Capital adequacy, Assets quality, Management, Earnings and Liquidity, We have studied the performance of five banks selected on the basis of market capitalisation (i.e. SBI, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.). Period under study is from 2007 to 2011. After calculating ratios weightages have been given to each parameter of the CAMEL Model. From the weighted results of each ratio, we have given marks on the basis of performance of each bank. On the basis of best overall performance, we have assigned ranks from 1 to 5 to the banks under study. As per the whole evaluation, results of the study are as follows. 1st Rank: HDFC Bank; 2nd Rank : SBI Bank; 3rd Rank : Kotak Mahindra Bank; 4th Rank : ICICI Bank; 5th Rank : AXIS Bank. |
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