Camel Research of Selected Private and Public Sector Banks in India

International Journal of Innovative Technology and Exploring Engineering (IJITEE)
ISSN: 2278-3075, Volume-8 Issue-12, October, 2019
Camel Research of Selected Private and Public

Sector Banks in India
S.Panboli, Kiran Birda
Abstract—Banks are the mainstay of any country’s economic role in the economy by helping the government to smoothen
development. The money is stored in the bank, wherein the their spending.
people are risk free of keeping money at home, and whenever Liquidity provision — Individuals, households and
required can take their money. The banks also help for any
businesses would like to protect themselves from the sudden
business growth or any start up business. And to meet all this
peoples’ requirement and even gain profits, banks sees their cash crunch. Banks provide such liquidity, through a
financial growth and analyze as what to be done to meet the provision by which they can withdraw money at any time
requirements. Even the people should know, whether the bank in and also the banks can offer lines of credit. Banks offer
which they have gone on their money is stable and can give back liquidity by trading in securities and the related products
their money back when needed or when the bank fails to shut when needed, at a relatively lesser transaction costs.
down due to unavailability of assets or loss which cannot be
Risk management services — the individuals and
reclaimed. This report examines the execution of certain private
and public sector banks. Five banks from private sector viz. corporations are able expose to risks by way of financial and
ICICI, HDFC, Axis, YES, Kotak Mahindra and five banks from commodity trading. This is possible only with the help of
public sector viz. SBI, PNB, BOB, UBI and Canara bank were banks. Banks provide such facility through derivative
chosen for this analysis. The data were collected for a period instruments dealings. Banks also help them indirectly by
from 2012-2013 to 2016-2017 (5 years). CAMEL analysis taking part in the universal exchange markets and product
(Capital adequacy, Asset quality, Management efficiency,
markets. It is highly complex for any business to import or
Earning quality, and Liquidity) was applied towards assessing the
performance. Based on CAMEL rating, HDFC & AXIS Bank are export without the help of the bank, as the bank plays as an
considered as performing above average; whereas PNB & important actor in the global currency markets and help in
Canara Bank is seen as below average. Thus, it could be foreign currency exchange.
concluded that in all the parameters of the CAMEL Model and Remittance of Money — Now in today‘s scenario,
its sub-parameters, the performance of the private sector is found anyone can easily transfer the cash from anywhere and
to be better than the public sector. .
everywhere with the help of a bank. This helps in expanding
the domestic and international trade. The bank has helped
Keywords: Performance, Public sector banks, Private sector
banks, CAMEL model the individuals to be free of the risks which they had when
carrying cash, gold, silver etc. with them. To facilitate the
I. INTRODUCTION transit of money the banks help in issuing the credit
instruments.
Bank is an institution wherein the deposit is accepted
Rapid Economic Development — Banks assist in the
from the public and lends to individuals and institutions.
process of economic development by way of providing
Capital market helps in contributing the amount both by
loans to agriculture, trade and industry.
directly and indirectly. Banks are regulated in most of the
Promoting Entrepreneurship — Banks provide loans
countries since, financial stability of the country is of most
at a fair rate and also make it easily available. This increases
importance. Most of the nations have a fractional reserve
the participation of the private sector in the economic
banking system. Under this, each bank has to hold liquid
development which promotes entrepreneurship.
assets equal to certain portions of their current liabilities.
The reason behind the preference of banks by anyone is :
Also, it is mandatory that banks have to keep minimum
Security: As banks are the most secure place to keep
capital as per the global capital standards fixed by Basel
money, jewelry, etc. where there is no risk of losing it.
Accord.
Convenience: It‘s not safe to keep money or jewelry in a
Bank’s role in the economic activity: home or personally with us in large amounts every time. So
Credit provision — Credit allows the individuals or any for this ATMs are there where we can take money out
households in purchasing homes without having entire cost whenever needed and it‘s convenient to take out money out
in advance in their savings, businesses in investing beyond from banks, ATMs when needed.
their cash on hand limit, etc. Hence credit plays an essential Saving and Investing: By doing this we get a financial
security in the future and which will help in future for the
unexpected happenings or when there is emergency for
money.
Revised Manuscript Received on August 05, 2019. To insure above functioning of banks properly and
Dr.S.Panboli, Associate Professor, Department of Management Studies, regularly, the main thing that is needed is the financial
B.S. Abdur Rahman Crescent Institute of Science and Technology,
Chennai, Tamilnadu, India. functioning of the bank. If the banks are stable and running
(E-mail: panboli@crescent.education)
Ms. Kiran Birda,Alumnus, Department of Management Studies, B.S.
Abdur Rahman Crescent Institute of Science and Technology, Chennai,
Tamilnadu, India.
(E-mail: kbirda94@gmail.com)
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Retrieval Number L39791081219/2019©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijitee.L3979.1081219 1237 & Sciences Publication
Camel Research of Selected Private and Public Sector Banks in India
smoothly, then the above requirement of the peoples can be analysis and also the CAMEL model. Bank of Baroda was
fulfilled and hence which in turn will increase the bank‘s in the first position in all the aspects of CAMEL. Punjab
profit. To know the performance of banks, whether it‘s National Bank was leading into Capital adequacy,
running smoothly, meets the criteria and have sufficient Management efficiency and Earning capacity. Bank of India
balance with them, etc., which all can be evaluated by using was leading in Asset Quality.
the CAMEL approach. G. L. Meena (2016) has made a study on ―Financial
Analysis of Select Banks Using CAMEL approach - a Study
II. STATEMENT OF THE PROBLEM with Reference to Indian Banking Industry‖. This survey
An analysis of bank performance: A study on select concluded that the four major dependent factors such as
public and private sector banks in India. debt-equity ratio, earnings per employee, total assets to total
deposits ratio, net non performing assets to total advances
III. OBJECTIVES ratio are impacting the financial operation of the banks
when taken into account the return on assets as an
 To examine the fiscal execution of select private independent variable.
and public sector banks by the CAMEL Model Jagjeet Kaur, Dr. Harsh Vineet Kaur (2016) analyzed
 To rank them according to the parameter under the the public sector bank‘s performance from 2004 to 2014 by
CAMEL model. means of the CAMEL model. The results showed that the
first position is taken by Bank of Baroda, next by PNB and
IV. REVIEW OF LITERATURE last position by Central Bank of India. Bank of Baroda and
Rohit Bansal and Anoop Mohanty (2013) in their study PNB were considered the more steady banks, next by Indian
―A Study on Financial Performance of Commercial Banks bank and IDBI banks as per CAMEL model. Canara bank &
in India: Application of Camel Model‖, have taken 5 banks SBI were considered as medium performance. Union Bank,
(Kotak Mahindra bank, ICICI bank, Axis bank, HDFC bank Bank of India, Syndicate Bank & CBI were considered
and State Bank of India for the period 2007-2012) and the below average performance.
ratios were calculated using camels model. From the Mohammad Kamrul Ahsan (2016) in his work on
weighted results of ratios, the ranking were given to the ―Measuring Financial Performance Based on CAMEL: A
bank and based on the overall performance HDFC bank is Study on Selected Islamic Banks in Bangladesh‖, examined
ranked 1st, SBI as 2nd, Kotak Mahindra as 3rd, ICICI Bank as the performance of three Islamic banks during 2007 and
4th and Axis Bank as 5th. 2014. The effects showed that all the three Islamic Banks
Sushendra Kumar Misra and Parvesh Kumar Aspal selected were in the best performance in their composite
(2013) on ―A Camel Model Analysis of State Bank Group‖, rating system. All the three banks were good in all the
showed that in Capital Adequacy norms, SBP and SBBJ aspects of CAMEL.
ranked first while SBI ranked last. Under the parameter Muralidhara P. and Chokka Lingam (2017) in their
‗Asset Quality‘, the SBBJ topped. Under the parameter study took five nationalized banks for finding the economic
‗Management efficiency‘, SBT ranked top and SBBJ was at performance using the CAMEL model for a period between
the last. Under the ‗Earning Capability‘, the SBM is ranked 2006 and 2016. In this study the Central Bank of India
first and SBP at the last. Under the Liquidity parameter, the occupied first position in three parameters.
SBI was ranked at the first and SBM at the last.
Golam Mohiuddin (2014) studied the ―Use of CAMEL V. METHODOLOGY
Model: A Study on Financial Performance of Selected Sources of Data:
Commercial Banks in Bangladesh‖, by taking two major
banks as the base for the study (NCB & PSB) operating in The data source was secondary to this subject. The
Bangladesh. This survey concluded that the banks were all performance of the banks was taken from the banks‘
at satisfactory place. websites, annual reports, Money control, Equity master,
CA. Ruchi Gupta (2014) studied the public sector bank‘s Economic times, various journals and research papers on
performance from 2009 to 2013 using CAMEL. The survey financial performance. The prime five banks each from
result shows that there is a considerable distinction between public sector and private sector were brought from this
the public sector banks using CAMEL. The ranks were comparative survey.
given differently for the banks based on 5 parameters. Period of Study:
Hare Krishna Karri, Kishore Meghani & Bharti The work period is from 2012-2017 (5 years).
Meghani Mishra (2015) have studied the Performance of
Public sector banks in India using the CAMEL model. Their Sampling:
study concluded that Bank of Baroda‘s performance as The prime five banks from private and public sector were
better than the Punjab national bank. taken for this analysis and their operation was examined
Jaspreet Kaur, Manpreet Kaur and Dr. Simranjit based on different parameter in CAMEL model.
Singh (2015) examined the performance of prime public
sector banks using the CAMEL. Punjab national bank, Bank
of Baroda, State Bank of India, Bank of India, and Canara
Bank were considered for this study from 2009 to 2014. The
study used many aspects to evaluate the functioning of
banks using the weighted average cost of capital, Regression
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Research technique: itself. The higher proportion of equity to assets will be

The different parameters in the CAMEL model were favored.
applied to examining the fiscal operation of the banks. The Networth
bank‘s performance is measured and ranked (1 strongest to Equity / Total assets ratio = ------------------ X 100
5weakest) by the bank examiners and other professional Total assets
experts who award these ratings.
(i) Capital Adequacy (C) (ii) Assets Quality (A)
The capital adequacy ratio (CAR) is used to check the This parameter used to assess the credit risk which is tied
ability of the banks in taking up a reasonable amount of in with a particular asset. How effective the organization is
loss. The banks CAR is tracked by the national regulators. in protecting and monitoring the credit risk may have an
This helps in knowing how safe is the people‘s money to the outcome of the credit rating that the bank would like to
banks and how the banks can overcome the losses if any. achieve. Asset quality measures how much percentage of
This helps in protecting the depositors and also to support Non-Performing Assets (NPA) are present in the total assets.
the steadiness and effectiveness of the banking systems in This also suggests the different ways of advances the bank
the globe. may produce. The subsequent proportions be applied to
The minimum requirement of CAR ratio, by Basel II evaluate the asset quality:
norms is 8%, by RBI 9%. a) Net Non Performing Assets / Total Assets:
The four ratios under this parameter are:-
When any borrower is unable to return the interest or the
a) CAR ratio: principal amount within 90 days, then that amount is
Tier I capital + Tier II considered as a Non Performing Asset (NPA). This ratio
capital helps in identifying the competency of the bank in
Capital adequacy ratio = ------------------------------------ predicting the credit risk and its ability in recovering the
------ X 100 debts. Lower ratio is preferred.
Risk weighted assets Net Non Performing
The capital which takes in the losses is called Tier I Assets
capital. At the time of winding – up of the company tier II Net NPA / Total assets = -------------------------------------
capital can help in absorbing the losses. This capital gives --- X 100
lesser shield to depositors. The highest CAR ratio is Total assets
preferred and will be rated at 1.
b) Debt / Equity ratio:
b) Gross Non Performing Assets / Total assets ratio:
This ratio shows how much debt is taken up by the
company to fund its assets. If the ratio is more then it means Here the lower ratio is chosen.
creditor financing is more than the investor financing. This Gross
contributes to greater financial distress if earnings do not Non Performing Assets
surpass the borrowing cost. Lower debt to equity ratio is Gross Non Performing Assets / Total Assets ratio = -------
preferred and will be ranked as1. ----------------------------------X 100
Total liabilities
Debt / Equity ratio = ------------------------------------ Total assets
-- X 100 c) Net Non Performing Assets / Net advances:
Shareholder‘s equity
Here net Non Performing Assets are measured as a
c) Advances / Total assets ratio: percentage of net advances. From gross Non Performing
This ratio helps in identifying how violent a bank is, in Assets, provision for Non Performing Assets and interest in
lending, which results in improved profitability. The larger suspense account are subtracted to get net NPAs. It shows
the ratio, the better the profit and is ranked 1. Receivables bad debts against the total loan sanctioned. Lower ratio will
are included in total advances and re- valued assets are be preferred.
removed from total assets. Net
Advances Non Performing Assets
Advances / Total assets ratio = -------------------------- Net Non Performing Assets / Net advances = ---------------
X 100 ------------------------ X 100
Total assets Net advances
d) Equity / Total assets ratio: d) Gross Non Performing Assets / Gross advances:
This ratio helps to find out the fate of assets of the Here gross Non Performing Assets are considered, which
company that are owned by investors. If the company is is the equal to the amount without subtracting the
highly levered then, debt holders will take the control at the provisions. The lower ratio
time of bankruptcy. If it is less leveraged, then it means will be favored.
most of the company‘s assets are owned by the company
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Gross Non Profitability of the banks is determined by this. The

Performing Assets following proportions will be counted on to determine the
Gross Non Performing Assets = ------------------------------ earnings of the Banks:
--------------- X 100
a) Dividend payout ratio:
Gross
advances This ratio shows the percentage of earnings that has been
distributed as dividends to the shareholders. The higher ratio
(iii) Management Efficiency (M) will be favored.
This stands for the capacity of the management to find,
monitor, compute and manage the risk. This ratio takes the Dividend per share
subjective analysis to appraise the effectiveness and Dividend payout ratio = ----------------------
efficiency of the management. This parameter is used to find ------------- X 100
the banks, which are performing better sweep away the
banks which are managed poorly. The following ratios are Earnings per share
used to measure this.
a) Business per employee: b) Operating profits / Total assets:
This ratio shows how effectively the human resources are This ratio is helpful in finding out the sum of operating
utilized by the business. The Larger the ratio, the better the profits generated by using the assets of the banks. The
human resources are utilized. The higher ratio is chosen. higher ratio is preferred which shows the assets are utilized
Total to the fullest extent to make maximum profits.
deposits and advances
Business per employee =--------------------------- Earnings Before Interest and Tax
------------------ Operating profits / Total assets =-----------------------
Number -------------------------------
of employees
Total assets
b) Profit per employee:
This ratio indicates the employees‘ contribution towards c) Net interest / Total income:
the profit of the banks. The larger ratio is chosen. This ratio helps in finding out the portion of the income
Net profits from interest out of income in total. The higher ratio is
Profit per employee =------------------------- chosen.
------ Interest earned
Number of – Interest paid
employees Net interest / Total income = ---------------------------------
------------------- X 100
Total
c) Return on Assets (ROA):
income
This ratio measures the profitability of a bank against its
total assets. This ratio is also named as "Return on
Investment" (ROI). The higher value is preferable. d) Net profit / Total assets:
Net income This ratio is useful in finding out the sum of profit left out
Return on Assets = ------------------------ X after paying interest and revenue enhancements. The higher
100 ratio is chosen.
Total assets Earnings After
Interest and Taxes
Net profit / Total assets = ----------------------------------
d) Return on Equity (ROE):
--------------- X 100
Return on equity (ROE) discloses how much funds Total
invested by the banker have converted into income. The assets
higher return on equity is preferred.
Net income (v) Liquidity (L)

Return on Equity = ---------------- Liquidity shows the ability of the banks to fulfill their
----------------- X 100 short term obligations. Banks should get hold of the right
steps to hedge them against liquidity risk and to ensure that
Shareholder‘s wealth they put in better investments to generate a higher yield on
investment. This will help the banks to get earnings and at
(iv) Earning Quality (E)
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the same time offer the liquidity. The following ratios are of it. For the lending purpose the higher the ratio is
considered here. preferred.
Total advances
a) Liquid assets / Total assets:
Credit deposit ratio = ----------------------------- X 100
Cash in hand & with other banks (India and abroad), cash Total deposits
in Reserve Bank of India and money at call and short notice
are called liquid assets. The liquidity position of the bank d) Current Ratio:
could be assessed by this ratio. A higher ratio is chosen. The ability of the banks to pay back its short term
Liquid assets obligations is called current ratio.
Liquid assets / Total assets = ------------------------- X 100 Current assets
Total assets Current ratio = ----------------------------
Current liabilities
b) Liquid assets / Total deposits:
If this ratio is less than 1 then, it shows that the company
The ability of the banks to quickly convert their deposits is not in a situation to pay off its short term obligations. If it
into cash is measured by this ratio. Total deposit includes is more than 3, then it does not mean the company is in
demand, saving, and term deposits and deposits in other serious shape with regard to the financial being. Because all
institutions. The bank with higher ratio is chosen. depends on how a company allocates its assets. A high
Liquid assets current ratio may also sometimes suggest that the troupe is
Liquid assets / Total deposits = ---------------------------- not utilizing its current assets and working capital
X 100 efficiently.
Total deposits Analysis: Rating 1 represents the stable nature of the
banks. A rating of 2 or 3 represents the average and a rating
c) Credit deposit ratio: of 4 or 5 represents below average performance. Banks with
a below average rating needs to be supervised closely.
The amount of advances made by the depository financial
institution against its total deposits is measured by this ratio.
VI. DATA ANALYSIS AND INTERPRETATION&
If the ratio is low, then it shows that the bank is not fully
RESULTS
employing its resources and a higher ratio means the reverse
Fig: 1 (a): Camel Model: C: - Capital Adequacy
Fig 1 (b): Graphical representation of the calculated ratios under the Capital adequacy parameter.
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Fig 4.1 (c): Overall performance under capital adequacy norm
Interpretation: It is found that ICICI Bank has ranked 1 lending. In the final ratio equity to total assets, Kotak
with highest capital adequacy. The Union Bank of India is Mahindra has larger assets to compensate off their
ranked last with least capital adequacy ratio, still it is shareholders in case of winding up, followed by ICICI
meeting the 8% minimum Basel II norms. Every bank has (10.77), HDFC (9.945), AXIS (9.73) and the least equity to
fulfilled the minimum requirement of 8%. Regarding Debt - assets ratio of Union Bank of India (3.97).
Equity ratio (level of leverage of a depository financial Based on the average of all the four sub-parameters,
institution), Kotak Mahindra Bank is using minimum debt to Kotak Mahindra (2.25) ranked number 1 followed by HDFC
operate their line of work, whereas Union Bank is using (2.75), ICICI (3.25), AXIS (4.75), SBI (5.25), YES Bank
higher debt and their capital adequacy ratio is too low. As (5.75), followed by all three Bank of Baroda, Canara bank
per the advances to total assets ratio, HDFC Bank is really and Union Bank of India, together at rank 8. Union Bank of
violent in lending. The next is Union bank of India (65.69), India is the only bank which is not doing well in all the 3
followed by SBI (62.186) followed by PNB (61.92) in sub- parameters individually as well as a composite.
Fig 2 (a): Camel Model: A: - Asset Quality
Fig 2 (b): Graphical representation of the calculated ratios under the Asset Quality parameter.
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Fig 2 (c): Overall performance of the banks under the Asset Quality parameter
Interpretations: Fig 2(a) shows that HDFC Bank (.175) most unpleasant gross NPAs to gross advances ratio is in
is having the lowest net NPAs against total assets , and Canara Bank (7.71). Regarding net NPAs to net advances,
Canara bank (4.65) has the maximum net NPAs against total YES Bank has got less non performing asset to net advances
assets. This indicates that Canara Bank advances are not followed by AXIS Bank (.99), Kotak (1.06), HDFC Bank
safer. With regard to gross NPAs to total assets YES Bank (1.53).
has got finest quality of loans followed by HDFC Bank (. As per the averages of four sub-parameters under asset
62) and Kotak Mahindra (1.38) and the maximum gross quality, the YES Bank (1.25) is in number 1 position,
NPAs to total assets is of Canara Bank. Regarding gross non followed by HDFC Bank (2.25), AXIS and Kotak Bank
performing asset to gross advances, YES Bank is in first (3.75), ICICI and SBI Bank (5.5), Union Bank of India (7),
place followed by HDFC Bank (. 99) and Kotak (2.24). The PNB (8.5), Bank of Baroda (8.75), and Canara Bank (8).
Fig 3 (a): Camel Model: M: - Management Efficiency
Fig 3 (b): Graphical representation of the calculated ratios under the Management Efficiency parameter.
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Fig 3 (c): Overall performance of the banks under the Management Efficiency parameter
Interpretations: Fig 3 (a) shows each parameter of the employees of PNB. Regarding the return on assets,
management efficiency. Regarding business per employee, Kotak is having highest profit followed by HDFC, YES
Bank of Baroda is having a more secured business, followed bank and AXIS bank. The next ratio under this parameter is
by Union Bank and Canara Bank. The business per return on equity. In this parameter YES Bank is in the first
employee is very low in Kotak bank. That is Kotak is having position, the second is HDFC (17.84) and the third is AXIS
more employees as compared to the job. The next ratio is Bank (14.28). The minimum yield on equity calculated is of
profit per employee. This ratio shows each employee‘s PNB. With regard to the group average of this parameter,
contribution to the bank‘s profitability. The maximum HDFC is on the upper side, next by AXIS, YES, ICICI and
donation is established by the employees of HDFC Bank (. Kotak in the same rank. Union bank.and SBI has the same
68) followed by the ICIC Bank (. 58), AXIS Bank (. 537). rank. Bank of Baroda, Canara Bank & PNB are at last.
The final contribution in the profitability is established by
Fig 4 (a): Camel Model: E: - Earnings
Fig 4 (b): Graphical representation of the calculated ratios under the Earnings parameter.
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Fig 4 (c): Overall performance of the banks under the Earnings parameter
Interpretation: - Fig 4 (a) shows that parameter E of the Bank (31.85). The least interest income of selected banks is
camel rating. Under this parameter operating profits to total Canara Bank (20.33), reasoning that this bank is earning
assets ratio (OP/T.A) is taken. This ratio indicates that profits through investments rather than its principal origin of
maximum operating profits are earned by AXIS Bank (7.88) income (interest). The Net profits to total assets (N.P/T.A)
followed by ICICI (7.6), Canara Bank (7.53). The bank, ratio shows that YES Bank is earning maximum net profits
which is earning least operating profits is YES Bank (4.75). as operating profits followed by the Kotak &HDFC bank.
The next ratio is the dividend payout ratio (DPO) that shows The least net profits against total assets are realized by the
ICICI Bank is paying maximum dividend to its shareholders Canara Bank. On the foundation of composite E, HDFC &
followed by Canara Bank (25.1), Bank of Baroda (22.6) & ICIC Bank (3.25) are best in regard to the earnings followed
SBI (19.52). The lowest dividend payout ratio is of Kotak by AXIS Bank (4.5), Kotak (5), SBI (5.5), Canara Bank
Bank (3.8). In respect to Net Interest to total income ratio (6.25), YES Bank & PNB (6.5) Bank of Baroda (7), and
(NET INT/T.I), the maximum interest income is earned by Union Bank (7.25).
HDFC Bank (39.01) followed by Kotak Bank (36.72), AXIS
Fig 5 (a): Camel Model: L: - Liquidity
Fig 5 (b): Graphical representation of the calculated ratios under the Liquidity parameter.
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Fig 5 (c): Overall performance under liquidity
Interpretation: In this Bank of Baroda (16.17) has got best bank is ICICI Bank and the least ratio is of PNB. The
more liquid assets, next by AXIS (15.12) and Union Bank of final ratio is Credit Deposit Ratio (CDR). This ratio shows
India (14.95). The smallest amount of liquidity is that ICICI bank followed by Kotak bank relies on deposits
maintained by the Canara Bank (11.48). for their lending activities. It is found that the Bank of
With respect to liquid asset to total deposits (L.A/T.D) Baroda is not using its deposits adequately.
ICICI Bank is throwing the highest value. The smallest The high liquidity to fulfill the short term obligations are
liquidity is held by the Canara Bank (15.73). The current held by ICICI (2.5), followed by AXIS (2.75), HDFC (4.25),
ratio must be between 1 and 2. With compliments to this Kotak (4.75), SBI (5), YES Bank (5.5), Bank of Baroda
ratio all the banks are keeping up their current ratio. But the (6.5), Union Bank (6.75), PNB (8) and Canara Bank (9).
Fig 6 (a): -Composite Performance (Overall Ranking) of the Banks
Fig 6 (b): Graphical representation of all parameters for the banks under the CAMEL model
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Fig 6 (c): overall performance combining all the parameters
Interpretation:-Fig 6 (a) shows the composite ranking of 9. Hari Krishna Karri, Kishore Meghani & Bharti Meghani
all the selected banks from 2012 to 2017. HDFC is ranked in Mishra (2015), ―A Comparative Study on Financial
the first place. AXIS Bank, ICICI Bank, Kotak Bank, YES Performance of Public Sector Banks in India: An
Analysis on Camel Model‖, MPRA Paper No. 62844.
Bank, and Canara Bank are all in the late position. 10. Jaspreet Kaur, Manpreet Kaur and Dr. Simranjit Singh
As per CAMEL rating, HDFC & AXIS Bank are in the (2015), ―Financial performance analysis of selected
above average status; ICICI & Kotak Bank, YES bank & public sector banks: A CAMEL model approach‖, I J A
SBI Bank are in the average status, and the Union Bank, B E R, Vol. 13, No. 6, 4327-4348
Bank of Baroda, PNB & Canara Bank are in the below 11. Ahmad Waleed, Muhammad Bilal Shah and Muhammad
average status. Kashif Mughal (2015), ―Comparison of Private and
Public Banks Performance‖, IOSR Journal of Business
and Management (IOSR-JBM), Volume 17, Issue 7.Ver.
VII. CONCLUSION III, pp 32-38.
It is concluded that in all of the parameters of the 12. Jagjeet Kaur and Dr. Harsh Vineet Kaur (2016), ―Camel
analysis of selected public sector banks‖,National
CAMEL Model and its sub-parameters, private sector banks
Conference on ―Management, Information Technology
are found to be better performers than the public sector and Engineering‖ (GJ-NatConMITE 2016) GIAN JYOTI
banks. E-JOURNAL, Volume 6, Issue 3.
13. G. L. Meena (2016), ―Financial Analysis of Select Banks
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Vol 4, Issue 4, pp 449-454. ―A Camel Model Analysis Of Private Banks In India‖,
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―Evaluating Performance of Private Sector Banks HDFC
& ICICI: An Application of Camel Model with Capital &
Earning Parameter‖, RESEARCH HUB – International
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Published By:
IX. ABBREVIATIONS USED:

1. SBI: State Bank of India.
2. BOB: Bank of Baroda.
3. PNB: Punjab National Bank.
4. UBI: Union Bank of India.
5. BOI: Bank of India.
6. HDFC: Development Financial Corporation Bank
Limited.
7. ICICI: Industrial Credit and Investment
Corporation of India.
8. CAR: Capital adequacy ratio.
9. D/E Ratio: debt equity ratio.
10. AD / T.A: Advances to Total assets.
11. EQUITY /T.A: Equity to Total assets.
12. N.NPA/ T.A: Net non - performing assets to Total
assets.
13. G.NPA / T.A: Gross non - performing assets to
Total assets.
14. G.NPA / G.AD: Gross non-performing assets to
Gros advances.
15. N.NPA / N.AD: Net non-performing assets to Net
advances.
16. Composite A: Composite assets quality.
17. B.P.E: Business per employee.
18. P.P.E: Profit per employee.
19. ROA: Return on assets.
20. ROE: Return on equity.
21. COMPOSITE M: Composite management
efficiency.
22. OP/T.A: Operating profits to Total assets.
23. D.P.O ratio: Dividend payout ratio.
24. N.INT/T.I: Net interest to Total interest.
25. N.P / T.A: Net profit to Total assets.
26. COMPOSITE E: Composite earning efficiency.
27. L.A/T.A:- Liquid asset to Total assets.
28. L.A/ T.D:- Liquid asset to Total deposits.
29. CDR: - Credit Deposit Ratio.
30. COMPOSITE L: - Composite liquidity ratios
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Camel Research of Selected Private and Public Sector Banks in India

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International Journal of Innovative Technology and Exploring Engineering (IJITEE)

ISSN: 2278-3075, Volume-8 Issue-12, October, 2019

Camel Research of Selected Private and Public

Research technique: itself. The higher proportion of equity to assets will be

Gross Non Profitability of the banks is determined by this. The

Net income (v) Liquidity (L)

Fig: 1 (a): Camel Model: C: - Capital Adequacy

Fig 4.1 (c): Overall performance under capital adequacy norm

Fig 2 (a): Camel Model: A: - Asset Quality

Fig 3 (a): Camel Model: M: - Management Efficiency

Fig 4 (a): Camel Model: E: - Earnings

Fig 5 (a): Camel Model: L: - Liquidity

Fig 5 (c): Overall performance under liquidity

Fig 6 (a): -Composite Performance (Overall Ranking) of the Banks

Fig 6 (c): overall performance combining all the parameters

IX. ABBREVIATIONS USED:

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