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- Title
Financial Performance of Selected Public and Private Sector Banks in the Light of CAMEL Model.
- Authors
Vadrale, Kavita S.
- Abstract
Purpose: Better financial health of a bank leads to better financial system of the economy. Thus, the CAMEL ratio based model is analyzing the financial performance of banks based on five parameters i.e. Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity. Therefore, the key objective of the present paper is to examine the comparative financial performance of selected Indian public and private sector banks by using the CAMEL parameters i.e. Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity of selected Indian public and private sector banks during 2001 to 2015. Method: Top ten banks from net profit point of view were selected for the study. Based on ranks, selected top five banks from public sector are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda and Bank of India and top five banks from private sector are ICICI Bank, HDFC Bank, Axis Bank, Jammu and Kashmir Bank and Federal Bank. The study is based on secondary data and collected from the annual reports of respective banks during 2001 to 2015. Results: The financial performance indicators highlight that private sector banks are superior to public sector banks. Out of 22 parameters, private sector banks are leading in ten and public sector banks are leading in only three. In case of remaining nine parameters both banks having equal performance. Conclusions: Study concludes that, among the key five parameters of the financial performance, asset quality, earning quality and management efficiency parameter was better in private sector banks and public sector banks was superior in liquidity. Financial Performance of Selected Public and Private Sector Banks in the Light of CAMEL Model.
- Subjects
JAMMU &; Kashmir (India); PRIVATE banks; PRIVATE sector; PUBLIC sector; FINANCIAL performance; ECONOMIC indicators; PUNJAB National Bank (Company); BANK of India; BANK of Baroda
- Publication
Wealth: International Journal of Money, Banking & Finance, 2019, Vol 8, Issue 1, p49
- ISSN
2277-9388
- Publication type
Article