Camel Model-Based Performance Evaluation of Selected Public Sector Banks

Abstract

The primary purpose of this paper is to examine the overall financial performance of a number of different Public Sector Banks (PSB's) operating in a number of different domains. When seeking to discriminate between good banks & bad banks, there are a great many factors that need to be taken into account in order to make an accurate assessment. The Capital Adequacy, Management Efficiency, Earning Quality & Liquidity (CAMEL) model is one of the decision-making basis & it utilises the bank parameters in order to evaluate how well the public sector banks are performing overall. This model examines the performance of chosen public sector banks based on each of the major factors, including capital adequacy, asset quality, managerial efficiency, earning quality & liquidity. When determining the relative importance of each parameter, the relevance of the research is taken into consideration & given equal weight. After finishing up the process of selecting models, it was concluded that it would be best to nationalise the banks.