Study on Financial Performance of Selected Banks Through Camels Model in India

Abstract

Banking sector is one of the fast-growing sectors in India and it plays a vital role in present economic system also. So, investors want to evaluate the performance of Banking sector to know the risk – return factors as well as factors affecting the performance of the banks. To evaluate the performance of banking sector, in the present study CAMEL model is used. This study analyzes financial health of three selected Indian banks, SBI bank, HDFC bank, AU small finance Bank through CAMELS model. The data were collected for a period between 2017 to 2022. It reveals the effect of each parameter (Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality, Liquidity, Sensitivity) on the profit generating capacity of bank.