Financial performance of selected public sector bank with application of camel model: An analytical study
Geetha N, Dr. Thirumal R
The economic importance of banks to the developing countries may be viewed as promoting capital formation, encouraging innovation, monetization, influence economic activity and facilitator of monetary policy. Performance evaluation of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. In the present study an attempt was made to evaluate the performance & financial soundness of select Public Sector Banks in India using CAMEL approach. Top three public sector banks based on return on net worth during 2013-2015 have taken for the study. It is found that in terms of Composite Capital Adequacy parameter SBH were at the top position, while SBBJ and Syndicate Bank got next rank. In terms of Asset Quality parameter, SBH held the top rank while Syndicate Bank held the lowest rank. Under Management efficiency parameter it was observed that top rank taken by Syndicate bank and lowest rank taken by SBBJ. In terms of Earning Quality parameter the capability of SBBJ got the top rank while Syndicate bank was at the lowest position. Under the Liquidity parameter SBBJ stood on the top position and Syndicate bank was on the lowest position. Syndicate bank needs to improve its position with regard to asset quality, earning quality, liquidity and capital adequacy, SBBJ should improve its management efficiency, capital adequacy and asset quality and SBH should improve its management efficiency, earning quality and liquidity.
Geetha N, Dr. Thirumal R. Financial performance of selected public sector bank with application of camel model: An analytical study. International Journal of Multidisciplinary Research and Development, Volume 3, Issue 9, 2016, Pages 01-04