Performance Analysis of Selected Private and Public Indian Banks by Using the Camel Model

P. VENKATAIAH

Abstract

A performance review of the banking industry is a trustworthy indication and metric that can be used by any nation to assess the soundness of its economic activities. The banking industry in India has been expanding at the same rate as the global banking industry. In addition to facilitating monetary policy, the banking industry supports capital formation, innovation, and monetization. The current study explains how to use the CAMEL APPROACH to assess the performance of a few private and public sector banks. A few Indian public banks' performance and financial stability have been evaluated in this study for the years 2018–2022. The public and private banking sectors that were chosen are ranked both overall and sector-wise. The scores of each bank are used to determine the banks' ratings. With the aid of CAMEL ratings, the CAMEL APPROACH was utilized to rank the performance evaluation of the chosen public and private banking sectors. The Capital Adequacy Ratio (CAR), Asset Quality, Management Capability, Earnings Capacity, and Liquidity are the parameters used in this study. And, ANOVA test is used to test, is there any significant distinction among the selected banks or not with respect to each parameter under the study. With the outcome of the project shoes the overall ranking of the Public and Private Banks and helps in providing the information about the performance and economic stability by applying the CAMEL's framework.