Comparative Performance Analysis of Selected Banks Using Camel Model
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 6
Abstract
With the increased competition and emphasis on profitability, the public sector banks have to face the competition with social welfare objectives. Performance of the banking sector is an effective measure and indicator to check the performance of any economy. The banking sector provides diversified services other than accepting deposits and lending loans like debit cards/credit cards, insurance, safety lockers, ATM, online fund transfer, etc. The present study examines the performance of 6 banks for the period 2013-17 using CAMEL model.Objectives of the study are to compare the performance of selected scheduled commercial bank in India using CAMEL Model and to suggest and conclude based on findings of the study. The present study analyzes the performance of 6 nationalized banks functioning in India. The secondary data was collected from journals, articles. The 6 banks analyzed for the study include 2 national banks, 2 public banks and 2 private banks. The performance of the above banks is analysed using CAMEL model. The components of a bank’s performance that are evaluated are: C-Capital Adequacy; A-Assets; M-Management Capability; E-Earnings and LLiquidity. Sixteen ratios of these components are used to evaluate the banks. It covers period of 5years from 2013 to 2017. The tools used for the data analysis of financial ratios. Secondary data makes use of official website of the selected companies under related banks under selected banks under study. . Evaluation of ranks of banks is based on statistical tool of consistency which is computed using coefficient of variation (Standard Deviation/Arithmetic Mean). The present study tested hypotheses that there is no significant difference in performance of selected banks in India and no significant differences in performance of CAMEL Parameters. It is summarized on an average consistency basis of CAMEL model, Canara bank stands the best among sample banks during the study period. Despite Indian bank secures the second rank, consistent-wise it needs to strive to increase its earnings and maintain adequate liquidity to overcome the problem of short-term insolvency. ICICI has to improve its quality of assets. There is no stability in management efficiency and asset quality of Axis bank. UCO bank needs to overhaul its system and structure. Comparative Performance Analysis of Selected Banks Using CAMEL Model
Authors and Affiliations
Cma Dr. Jeelanbasha . V, Dr. JeelanBasha . V
Keywords
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- EP ID EP412051
- DOI 10.9790/487X-2006078793.
- Views 87
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