Analysis of Banks in India—A CAMEL Approach

Abstract

Indian banking system has transformed in recent years due to globalization in the world market, which has resulted in fierce competition. In this article, an attempt has been made to rank the various commercial banks operating in India. The banks in India have been categorized into Public sector, Private sector and Foreign banks. For the purpose of profitability analysis 28 Public Sector, 26 Private Sector and 28 Foreign banks have been taken into consideration For the purpose of ranking, CAMEL analysis technique has been used. Each parameter of CAMEL—Capital Adequacy, Asset Quality, Management Quality, Earning Quality and Liquidity has been evaluated taking two ratios, and a final composite index has been developed. Among the public sector banks, the best bank ranking has been shared by Andhra Bank and State Bank of Patiala. Among the private sector banks, Jammu And Kashmir Bank has bagged the first rank followed by HDFC Bank. In the category of foreign sector banks, Antwerp Bank has been ranked the best followed by JP Morgan Chase Bank.