Financial Performance Analysis using CAMEL Model with Special Reference to Listed Small Finance Banks in India

Abstract

Banking sector plays a vital role for the development of Indian economy. Over the past few years banking industry has gone through many changes. Small Finance Banks are recent banking initiative of Reserve Bank of India towards promotion of financial inclusion in India. The small finance banks in India play a prominent role as these banks provide services to the financially unincluded population. These banks provide basic services to the small-scale farmers and micro and small-scale industries. These banks will help in boosting the economy of the country as they provide services to major population of the country. The study is related to a period of five years from financial year 2017-2018 to 2021-2022. The study contains an assessment of the performance of SFBs using CAMEL Model. The analysis helped to measures the performance of banks from each of the important parameter like Capital Adequacy, Assets Quality, Management Efficiency, Earning Quality and Liquidity.