Performance Evaluation of Leading Commercial Banks Using CAMEL Model Jaiswal Jaya*, Dr. Padmavathy G.** * MBA Sri Sathya Sai Institute of Higher Learning (Ananthapur Campus) ** Assistant Professor, SSSIHL, Ananthapur Online published on 28 July, 2016. Abstract The banking sector, being the barometer of the economy, is reflective of the macro-economic variables. While the Indian economy is yet to catch strength, the Indian banking system continues to deal with improvement in asset quality, execution of prudent risk management practices and capital adequacy. Financial performance evaluation of the banking sector is an effective measure and indicator to check the soundness of the banking sector as well as that of the economy. In the present study CAMEL model is being used in order to evaluate the financial performance of the banks on the following parameters-Capital adequacy, Asset quality, Management efficiency, Earnings quality and Liquidity. CAMEL Model is basically a ratio based model. Performance evaluation will be done for four commercial banks that is, two from each public sector and private sector. On the basis of highest market capitalization rate Bank of Baroda and Punjab National Bank from public sector and HDFC Bank and ICICI Bank from private sector has been taken for the study. The present study may help us to know which commercial bank is ahead on the basis of CAMEL model. And suitable recommendations will be given to banks for the improvement of their financial performance. Top Keywords CAMEL Model, Performance Evaluation, Market Capitalisation. Top |