Comparitive study of the selected indian private and public sector banks using camels model for the financial year 2015-16 to 2019-20.

Abstract

CAMELS model consisting of capital adequacy, asset quality, management efficiency, earnings quality, liquidity and sensitivity is an effective tool to determine the financial performance of the banks. The present study was done to compare the financial performance of the public sector banks; State Bank of India (SBI) & Central Bank of India (CBI) versus two selected private sector banks; ICICI bank & AXIS bank from 2015-16 to 2019-20 by CAMELS model. The study-data was collected from the annual reports, banking bulletin, websites, magazines, newspapers and published literature in journals. Results of our study shows that for the criteria of capital adequacy ICICI bank secured 1^st rank, for asset quality comparison AXIS bank secured 1^st rank, for management efficiency comparison AXIS bank secured 1^st rank, for Earning quality comparison ICICI bank secured the 1^st rank for Liquidity comparison CBI got 1^st rank and for sensitivity criteria, SBI got the 1^st rank. In summary, CAMELS model is an effective tool to evaluate the financial performance of the banks. ICICI bank secured 1^st rank followed by AXIS bank at 2^nd rank, SBI at 3^rd position and CBI at 4^th position respectively in the composite and overall performance evaluation by CAMELS model.