Ranking Selected Public Sector Banks in India based on the Camel Rating Methodology PDF Download

Author: Rajveer Rawlin
Publisher: GRIN Verlag
ISBN: 3668458391
Category : Business & Economics
Languages : en
Pages : 17

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Research Paper (postgraduate) from the year 2017 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, , language: English, abstract: The CAMEL rating is a well established technique to compare the performance of banks and financial institutions. We compare a sample of five public sector banks in India, ranking them via the CAMEL rating. Of the banks chosen for the study SBI ranked first in capital adequacy, asset quality and earnings quality. IDBI ranked first in management efficiency while BOB ranked first in liquidity. The bank with the best overall CAMEL rank proved to be SBI. By providing a basis of comparison for different banks the CAMEL rating can yield valuable insight to several stake holders of banks such as bank management, investors and regulators.

Author: Rajveer Rawlin
Publisher:
ISBN:
Category :
Languages : en
Pages : 12

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The CAMEL rating is a well established technique to compare the performance of banks and financial institutions. The Compound Annual Growth Rate (CAGR) is a very useful growth measure. We compare the top five private sector banks in India, ranking them via the CAMEL rating based on the CAGR of CAMEL parameters. Of the banks chosen for the study, IndusInd bank ranked first in capital adequacy, asset quality and earnings quality. HDFC bank ranked first in management efficiency and Axis bank ranked first in liquidity. The bank with the best overall CAMEL rank proved to be IndusInd bank. By providing a basis of comparison for different banks the CAMEL rating can yield valuable insight to several stake holders of banks such as top management, investors and regulators.

Author: Dr. Tarsem Lal and Mr. Arjun Gupta
Publisher: Ashok Yakkaldevi
ISBN: 1387686003
Category : Art
Languages : en
Pages : 217

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The banking industry is a vital part of the financial system. It aids in the stimulation of capital formation, innovation, and monetization, as well as the facilitation of monetary policy and plays an important part in the economic development of countries (Said & Tumin, 2011). It acts as a catalyst for achieving a long-term economic upswing through effective fiscal intervention. A financially sound system encourages investment by funding lucrative market niches, mobilising savings, efficiently dispensing resources and making commodity and service trading more convenient (Echekoba et al., 2014). During the liberalisation process in India, the banking industry has changed significantly. Since 1969, when the Indian government nationalised all major banks, the banking sector in India has been dominated by public sector banks.

Author: Ajaykumar Kankipati
Publisher:
ISBN:
Category :
Languages : en
Pages : 9

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The Banking sector is the backbone of the Indian economy and it helps to the growth and development of the country. This paper analysis at the financial soundness of selective public sector banks under globally accepted CAMEL framework. This paper observes the behavior of various parameters of CAMEL approach model and their ability over the study period. The financial analysis finds the overall soundness of selective public sector banks with certain five parameters present study analyzes the performance of two private sector and two public sector banks for the period 2012-2016 using CAMEL model. The research aims to evaluate Capital adequacy, Asset quality, Management, Earnings and Liquidity parameters for the sake of understanding of soundness of banks. The application of CAMEL approach to both private and public sector bank for the period 2012 to 2016 allows us to out the performance of banks. We use debt equity ratio for the analyze of capital adequacy parameter, loan loss provisions to total loans for the analyze of assets quality parameter, return on equity for analyzing management quality side, return on assets to analyze earnings parameter and deposits on total assets ratios to analyze liquidity capability.

Author: Srinivasan Palamalai
Publisher:
ISBN:
Category :
Languages : en
Pages : 13

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Book Description
Camel approach is significant tool to assess the relative financial strength of a bank and to suggest necessary measures to improve weaknesses of a bank. In India, RBI adopted this approach in 1996 followed on the recommendations of Padmanabham Working Group (1995) committee. In the present study, an attempt has been made to rank the various commercial banks operating in India. The banks in India have been categorized into Public sector, Private sector, and Foreign banks. The sample of selected banks consists of 25 Public Sector, 18 Private Sector, and 8 Foreign banks. For the purpose of ranking, Camel model approach has been applied, incorporating important parameters like Capital Adequacy, Assets Quality, Management Efficiency, Earnings Quality and Liquidity. The finding of the study shows that public sector banks, viz. Andhra Bank, Bank of Baroda, Allahabad Bank, Punjab National Bank IDBI Bank, State Bank of Bikaner and Jaipur and UCO Bank has been ranked at the top five positions in their financial performance during the study period. The private sector banks, namely, Tamilnad Merchantile Bank, Kotak Mahindra Bank, HDFC Bank, Axis Bank, Karur Vysya Bank, ICICI Bank, Citi Union Bank and IndusInd Bank shared the top five positions. The foreign banks such as Bank of Bahrain & Kuwait, HSBC Bank, The Royal Bank of Scotland, Deutsche Bank, CTBS Bank, Citi Bank, DBS Bank and Royal Bank of Scotland secured the top five positions during the study period.

Author: Hariharan Chandrasekar
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659948480
Category :
Languages : en
Pages : 128

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Book Description
The present study revealed the financial performance of public sector and private sector bank during the study period. The both public and private sector banks is developing in technology and contributing growth to the economy. In CAMEL model, all the parameters are put together and average ranking is given to all the firms again. The composite rank shows the overall firms' performance. Still the public sector banks are having better figures of maintaining the liquidity because they are fulfilling this requirement by maintaining highest credit deposit ratio. The composite ranks of all the parameters of the banks states that Bank of Baroda public sector banks and Kotak Mahindra Bank Limited amongst the private sector banks is doing business very well. The AXIS Bank Limited and Punjab National Bank were also giving the best performance.

Author: Geeta Sharma
Publisher:
ISBN:
Category :
Languages : en
Pages : 5

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Book Description
Economic Development has placed the management of Banks under great pressure to set and meet the institution's performance goal or suffer serious financial and reputation loss. Banks have been called upon to continually reevaluate their policies, review their plans for growth and expansion, and assess their returns and risk exposure in light of new competitive environment. This study evaluates the performance of banks applying CAMEL model. Eight public sector bank and seven Private Sector banks are chosen according to the size of their asset. The banks are ranked on each parameter of CAMEL. While the top position is taken by Private sector banks; there is a lot of scope of improvisation in Public Sector banks.

Author: Santhoshi Kumari
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Banking sector plays an important role in the economic development of a country. In India, Eagles model is capable of measuring and comparing banks' performance in a more determinate, objective and consistent manner. There is no subjectivity involved in Eagles model, and the banks are judged purely on the output ratios and ranked based on these parameters. The present study uses 10 years' data of selected 10 public and private sector banks. The results reveal that Yes Bank is in top position in terms of Return on Assets (ROA), gross NPA, and Provision Coverage Ratio (PCR). This indicates that Yes Bank has more earning capacity as compared to the remaining selected banks. Kotak Mahindra Bank is also performing efficiently in terms of investment-to-deposit and Capital Adequacy Ratio (CAR), which indicates that private sector banks are performing well as compared to public sector banks. Among public sector banks, State Bank of India is performing efficiently in loans and deposits component. The study proves that there is a significant difference in the performance of selected public and private sector banks.

Author: Hari Karri
Publisher:
ISBN:
Category :
Languages : en
Pages : 17

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Book Description
Banking sector is one of the fastest growing sectors in India. Today's banking sector becoming more complex. The objective of this study is to analyze the Financial Position and Performance of the Bank of Baroda and Punjab National Bank in India based on their financial characteristics. This study attempts to measure the relative performance of Indian banks. For this study, we have used public sector banks. We know that in the service sector, it is difficult to quantify the output because it is intangible. We have chosen the CAMEL model and t-test which measures the performance of bank from each of the important parameter like capital adequacy, asset quality, management efficiency, earning quality, liquidity and Sensitivity.

Author: Nidhi Nalwaya
Publisher:
ISBN:
Category :
Languages : en
Pages : 13

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Book Description
A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. Banks are a fundamental component of the financial system, and are also active players in financial markets. The banking sector is the most dominant sector of the financial system in India, and with good valuations and increasing profits, the sector has been among the top performance in the markets. The recent tech-savvy practices and processes adopted have propelled public sector banks out of complacency and given them a competitive edge. PSB`s such as PNB and Bank of Baroda are posting rapid increase in their asset base every year as compared to other public sector banks. The objective of present paper is to analyze the financial performance of the public sector banks on Return on Net Worth, Net Operating Profit per Share, Debt Equity Ratio, and Capital Adequacy Ratio. For this study six Public Sector Banks have been selected. The Indian banking system faces several difficult challenges. The selected public sector banks have performed well on the sources of growth rate and financial efficiency during the study period.