Financial Performance of Selected Public and Private Sector Banks Based on CAMEL Model with Reference to Indian Banking Sector

The Banking sector is the backbone of the Indian economy and it helps to the growth and development of the country. This paper analysis at the financial soundness of selective public sector banks under globally accepted CAMEL framework. This paper observes the behavior of various parameters of CAMEL approach model and their ability over the study period. The financial analysis finds the overall soundness of selective public sector banks with certain five parameters present study analyzes the performance of two private sector and two public sector banks for the period 2012-2016 using CAMEL model. The research aims to evaluate Capital adequacy, Asset quality, Management, Earnings and Liquidity parameters for the sake of understanding of soundness of banks. The application of CAMEL approach to both private and public sector bank for the period 2012 to 2016 allows us to out the performance of banks. We use debt equity ratio for the analyze of capital adequacy parameter, loan loss provisions to total loans for the analyze of assets quality parameter, return on equity for analyzing management quality side, return on assets to analyze earnings parameter and deposits on total assets ratios to analyze liquidity capability