A STUDY ON FINANCIAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN INDIA USING CAMEL APPROACH

VASU V; HARSHA J

Volume : VII, Issue : VIII, August - 2018

A STUDY ON FINANCIAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN INDIA USING CAMEL APPROACH

Vasu V, Harsha J

Abstract :

Commercial banks plays a major role in financial system of an economy, the financial health of a nation is directly related to the financial soundness of its banking system. This paper set out to analyse the financial soundness of major commercial banks in India for the period 2013-14 to 2017-18. The camel rating system is recognised as an international rating system that is used in order to rate financial institutions accordingly to six factors represented by acronym CAMEL. The aim is to apply CAMEL rating system to evaluate the (C) capital adequacy, (A) asset quality, (M) management efficiency, (E) earnings and (L) liquidity. We usedcapital adequacy ratio for the analysis of capital adequacy ratio, return on asset for analysing the asset quality, interest income to total asset for analysing management quality, interest spread ratio to analyse earnings and quick ratio to analyse liquidity of banks.