Volume : IV, Issue : I, January - 2015

CAMEL Model, A Conceptual Framework For Financial Performance Evaluation Of Banks In India

Nayan M. Gadhia

Abstract :

The development or progression of any economy is heavily dependent upon optimum utilization of available resources and operational efficiency of the various sectors. Banking sector always plays a very important role in the development of any economy. Banking sector is one of the important and rapidly growing sectors in India. The importance may be viewed in the context of help or support in stimulation of capital formation, encouraging innovation, influence or direction to economy, monetization in addition to monetary policy. Therefore, performance evaluation and analysis of banking sector is very important and effective measure to ensure sound financial system and economy. Evaluation of Indian Banking Sector is not an easy task to do. ‘CAMEL’ model or rating is a supervisory rating system originally developed in the U.S. to classify a bank’s overall performance. ‘CAMEL’ model measures the performance of banks by applying important parameters like Capital Adequacy, Assets Quality, Management Efficiency, Earning Quality and Liquidity. In this paper, an attempt has been made to explain the concept of ‘CAMEL’ model for performance evaluation of banks in India.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Nayan m. Gadhia ‘ CAMEL’ Model, A Conceptual Framework For Financial Performance Evaluation Of Banks In India International Journal of Scientific Research, Vol : 4, Issue : 1 January 2015

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