A Study On Financial Analysis Of Selected Public Sector Banks Using Camels Ratios

Abstract

Commercial Banks serve as backbone to the Indian financial sector, which facilitate the proper utilization of financial resources of an economy. The Indian banking sector is increasingly growing and it has witnessed a huge flow of investment. In order to cope with the complexity and a mix of risk exposure to banking system properly, responsibly, beneficially and sustainably, it is of great importance to evaluate the overall performance of commercial banks by implementing a regulatory banking supervision framework. One of such measures of supervisory information is the CAMEL rating system which was put into effect. The research paper is an attempt in the assessment of financial analysis of Public Sector Banks for the financial years March 2009 to March 2019. The financial performance and position is an efficient measure and indicator to judge the strength of financial system of an economy.  The CAMELS ratings or Camels rating is a supervisory rating system originally developed in the 1Source-RBI U.S. to classify a bank's overall condition. It's applied to every bank and credit union in the U.S. (approximately 8,000 institutions) and is also implemented outside the U.S. by various banking supervisory regulators. The ratings are assigned based on a ratio analysis of the financial statements, combined with on-site examinations made by a designated supervisory regulator.