A Study of Financial Performance of Nationalized Commercial Banks in India by CAMEL Model | Original Article

ABSTRACT:

The study aims to evaluate the financial performance of commercial banks in India. Sample of six Commercial Banks (three Public and three Private sectors) are taken and the data for the study is from 2008-09 to 2017-18. The banks include Axis Bank, Bank of Baroda, Corporation bank, HDFC Bank, ICICI Bank and State Bank of India. The data is collected from published annual reports, websites of the respective banks, and from Reserve Bank of India. Calculations are done for measuring the aspects of financial performance of banks by applying CAMEL Model which includes capital adequacy, asset quality, management efficiency, earning quality and liquidity. The significance of the parameters of the CAMEL model were tested by using ANOVA, it is found that State Bank of India in public sector and HDFC bank in private sector performed significantly well in nearly all the aspects of CAMEL. However, the performance of Bank of Baroda in public sector and Axis bank in private sector witnessed the maximum growth of their prices and returns at the BSE.