A Comparative Analysis of Performance of Select 10 Banks Based on Camel Model

Abstract

The financial sector plays a very important role in the development  of the economy of a country. Banks are vital components of any financial  system and thus the stability of the banking sector has gained a lot of importance especially after the global financial crisis in 2008. Assessment of the financial performance of the banking sector is an effective and necessary measure to judge the strength of the financial system of an economy. The volatility of the financial markets, the intense competition  amongst the banks in the aftermath of the economic liberalization, and diversification of banking services into other areas like insurance and investments  has increased the risk and challenges faced by banks. CAMEL model is one of the more  popular models used for the  assessment of bank performance. In this study, a sample of 10 banks chosen from both public and private sector banks in India have been ranked on the basis of this model.