Asset Quality Evaluation of Select Indian Banks: A Camel Model

Abstract

Banking Sector has a direct impact on the economic growth of a country. The performance of Bank is analysed in regular basis. The ‘CAMEL’ model is a reliable and precise method to use as a performance assessor in the Banking Industry and to anticipate potential and relative risk. The present study is being conducted to make a comparative analysis of the financial performance of State Bank of India (SBI) and Punjab National Bank (PNB) in Public Sector and Industrial Credit and Investment Corporation of India (ICICI) and AXIS Bank (AXIS) in Private Sector during 2011-2018 with CAMEL Model (Capital Adequacy, Assets Quality, Productivity of Management, Earnings Quality, and Liquidity). The financial performance of a bank is analyzed on the basis of CAMEL rating and it ranked accordingly. The data is collected from the respective Bank’s annual reports. The overall performance of the ICICI is excellent, and the Bank is ranked (1) among four Banks. AXIS is ranked (2) followed by SBI (3) and PNB (4). However PNB is poorly performed in the overall composite ranking. The Overall financial performance of Public Sector Banks is not up to the mark as compare to Private Sector Bank and to be tracked closely to ensure their viability.