A Comparative Study On Financial Performance Of Public Sector Banks In India: An Analysis On Camel Model

Kishore Meghani, Kishore Meghani and Hari Krishna Karri, Hari Krishna Karri and Bharti Meghani Mishra, Bharti Meghani Mishra (2015): A Comparative Study On Financial Performance Of Public Sector Banks In India: An Analysis On Camel Model. Published in: Arabian Journal of Business and Management Review (OMAN Chapter) , Vol. 4, No. 8 (March 2015): pp. 18-34.

Abstract

Banking sector is one of the fastest growing sectors in India. Today’s banking sector becoming more complex. The objective of this study is to analyze the Financial Position and Performance of the Bank of Baroda and Punjab National Bank in India based on their financial characteristics. This study attempts to measure the relative performance of Indian banks. For this study, we have used public sector banks. We know that in the service sector, it is difficult to quantify the output because it is intangible. We have chosen the CAMEL model and t-test which measures the performance of bank from each of the important parameter like capital adequacy, asset quality, management efficiency, earning quality, liquidity and Sensitivity.

• Item Type: MPRA Paper
• Language: English
• Keywords: CAMELS Model, Bank of Baroda, Punjab National Bank, Financial performance
• Subjects: G - Financial Economics > G0 - General; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics

References

1. Sathya and Bhattacharya et el (1997) : “Impact of Privatization on the Performance of the Public Sector Banks, Journal of Management Review: pp 45-55.

2. K. SRINIVAS (2010): “Pre and Post Merger Financial Performance of Merged Banks- A Select Study”, Indian Journal of Finance, May 2010.

3. Chowdari Prasad and K.S. Srinivasa Rao (2004) : “Private Sector Banks in India - A SWOT Analysis, Bankers Profession, pp 28-33.

4. Sanjay J. Bhayani (2006): “Performance of the New Indian Private Banks – A Comparative Study, Banking Review: pp 55 – 59.

5. Chidambaram R.M and Alamelu (1994): “Profitability in Banks – A matter of Survival, The Banker: pp 1-3 May.

6. Das A. (1997): “Technical, Allocative and Scale Efficiency of Public Sector Banks in India, RBI Occasional Papers, June to September.

7. Barman R. B. and Samanta G. P “Banking Services Price Index: An Exploratory Analysis for India” (www.financialindia.com)

8. Bhadury Prof. Subrato (2007) conducted study on “Commercial banking in India new challenges and opportunities after liberalization” South Asian Journal of Socio-Political Studies (Vol No-2, Jan-June 2007).

9. Board John Sutcliffe, Ziemba Charles, William T.(2003) “Applying Operations Research Techniques to Financial Markets” Interfaces; (Mar/Apr2003, vol. 33 issue 2), (Pg12 24).

10. Brown Craig O. and Dinc I. Serdar (2005) “The Politics of Bank Failures: Evidence from Emerging Markets” Quarterly Journal of Economics, (November 2005) (Pg-1413-1443).

11. Batra Mr. Sumant & Dass Kesar (2003) “Maximising value of Non Performing Assets” Forum for Asian Insolvency Reform (FAIR) (Seoul, Korea 10 - 11 November 2003).

12. Chhikara Dr. Sudesh (2007) “Causes and Impact of Non Performing Assets in Public Sector Banks: A state level Analysis” Amity Management Analyst ( Vol 1, No 2) (2007) (Pg. No. 48-56).

13. Chipalkatti Niranjan , Rishi Meenakshi (2007) “Do Indian banks understate their bad loans?” The Journal of Developing Areas. Nashville: (Spring 2007. Vol. 40, Issue. 2) ;( Pg. 75-91).

14. Chakrabarti Rajesh and Chawla Gaurav (2005) “Bank Efficiency in India since the Reforms: An Assessment” Money & Finance ICRA Bulletin, (July-Dec’05) (Pg.-31-42).

15. Deolalkar G.H “The Indian Banking Sector On the road to progress” Article from (www.fedral.co.in) 15. Derviz Alexis and Podpiera Jiri “Predicting Bank CAMEL ad S&P ratings: The Caste of Czech Republic” Working Paper Series, printed and distributed by Czech National Bank (http://www.cnb.cz.).

16. Das, Abhima, Ghosh, Saibal (2006) “Financial Deregulation and Efficiency: An Empirical Analysis of Indian Banks during the Post Reform Period” Review of Financial Economics; (Sep2006, Vol. 15 Issue 3), (Pg193-221).

17. Dhar V Ganga and Reddy G Nares (2007) “Mergers and acquisitions in the Banking Sector- an Empirical Analysis”ICFAI Reader, (March 2007), (Pg: 42-50).

18. Frierson, Robert DeV (2007) “Orders Issued under section 4 of the Bank holding Company Act” Federal Reserve Bulletin; (3/1/2007), (Pg44-48). Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 4, No.8; March. 2015 34

19. Dr.D.Maheshwara Reddyand K.V.N. Prasad (2011) conducted a study to evaluate performance of regional rural banks:An Application of Camel model. Journal of Arts , Science and commerce.Volume 2, Isue-4,Oct 2011

20. K. Srinivasl, Saroja (2013) “Comparative Financial Performance of HDFC BANK and ICICI BANK” Scholars world-International Refereed Multidisciplinary Journal of Contemporary Research Volume.1, Issue.2, July 2013 [107]

21. Kishore Meghani , Deepti Tripathi and Swati Mahajan (2014) “ FINANCIAL PERFORMANCE OF AXIS BANK AND KOTAK MAHINDRA BANK IN THE POST REFORM ERA: ANALYSIS ON CAMEL MODEL.” International Journal of Business Quantitative Economics and Applied Management Research Volume 1, Issue 2, July 2014 (Pg.-108-141).