Performance Assessment of Selected Indian Public and Private Sector Banks- A CAMEL Framework

Abstract

A strong Banking Industry is a significant measure of a country’s economic development. An attempt has been made in this study to assess the performance and the soundness of the top three public sector banks based on the market capitalization namely SBI, BOB, and PNB, and from the private sector it’s HDFC, ICICI and Kotak Mahindra bank. The data has been collected for the period of 2017-18 to 2019-2020 (3 years). CAMEL (Capital adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity) framework has been used to evaluate the performance. As per the composite ranking based on all the parameters and sub-parameters of the CAMEL model, HDFC secured 1^st rank followed by Kotak Mahindra Bank and ICICI. The fourth and fifth ranks are occupied by Bank of Baroda and State Bank of India respectively while the last position is secured by Punjab National Bank.