Performance Analysis of Bankex Banks through Camel Model

Abstract

Banks are barometer of every economy. Indian banks are well known for its closed and cautious operations. The sea change is experienced in operations of Indian banking sector due to varied reasons like tough competition from private banks, expectation of 24x7 banking services, financial inclusion and corporate as new entrant in banking sector. Indian banks have been always appraised for their accuracy and firm foot-holding in the odd times, when other global banks were feeling the hiccups of financial turmoil such as subprime mortgage and recession. The report card of banks is evaluated on its operational efficiency and risk management practices adopted by banks. Fundamental ratio based analysis is a popular tool to appraise the performance of the banks. CAMEL model provides the roadmap of key ratios that can be utilized for evaluating the performance of the banks. Using, the renowned CAMEL Model, the paper comments on the performance of 14 major banks, which constitute the 'Bankex' indices.