International Journal in Management & Social Science
Year : 2016, Volume : 4, Issue : 6
First page : ( 37) Last page : ( 53)
Online ISSN : 2321-1784.

Financial performance analysis of selected banks using CAMEL Model

Mrs. Talreja Jyoti¹, Shivappa Dr.::²

¹Assistant Professor Gogte Institute of Technology

²Associate Professor Kousali Institute of Management Studies Karnatak University Dharwad

Online published on 8 August, 2018.

Abstract

Banking is a fast growing sector it is approaching stock market for further capital requirement public sector banks need further capital to meet their Basel III norms. Banking sector in India is very essential for the growth of the economy and therefore it should attract investors. It is now predominantly significant for bankers to increase the shareholders wealth and encourage them for more investment in banks. A rationale investor will consider the overall performance of any sector before investing on the basis of profitability, management efficiency, goodwill, growth rate long term sustainability etc., there are various methods to measure the performance of banking sector one such method is CAMEL Model this model measures overall performance of the banking sector. It uses various ratios in each of the parameters, CAMEL rating can also be used to analyse which bank needs high supervision and support form RBI. In this paper an attempt is made to compare the financial performance of selected private sector and public sector banks in India for a period of 4 years from 2011–12 to 2014–15 using CAMEL model. From the analysis it is observed that Private sector banks have performed better in terms of capital adequacy, earning capability, asset quality, and public sector banks have performed better in liquidity and management capability for the selected period.

Top

Keywords

Bank, CAMEL, Capital adequacy, Financial Performance, profitability, shareholders value.

Top