Volume : 3, Issue : 3, JAN 2019

A Comparative Analysis of Performance of Public & Private Sector Banks in India Through Camel Rating System

Mahesh M. Kadam, Deepak Sapkal

Abstract

In today’s scenario, the banking sector is one of the fastest growing sectors and many funds are invested in Banks. Also today’s banking system is becoming more complex. So, we thought of evaluating the performance of the banks. There are so many models of evaluating the performance of the banks, CAMEL Rating has been considered as one of the widely used tools for judging capital adequacy, asset quality, management capacity, earnings ability, and liquidity of the financial institutions including commercial banks by the principal regulators all around the world.

This paper examines the comparative performance of leading public and private sector banks, i.e. Axis Bank and Kotak Mahindra Bank from Private Sector and Bank of Baroda and State Bank of India from the public sector. Data have been collected though annual reports of the consecutive five years i.e. 2013-14 to 2017-18 of all the banks. The calculated ratios for all the banks interpreted by CAMEL Model parameters. The study concluded that Government and Private Banks are doing well in maintaining the Capital adequacy, but Government Banks are facing major problems in Asset management due to more Non Performing Assets. The Profit and earning motives are higher in Private Banks than Public sector Banks. The Liquidity parameters are more the less same in Public and Private Banks.

Keywords

Camels Rating System, Performance Analysis, Capital Adequacy, Assets Quality etc

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