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ISSN 2063-5346
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THE CAMEL ADVANTAGE: EVALUATING BANK PERFORMANCE FOR FUTURE SUCCESS

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S.S.Muthukkumar , Dr. Rhytheema Dulloo
» doi: 10.31838/ecb/2023.12.s1-B.413

Abstract

The performance analysis of banks plays a pivotal role in understanding their financial stability and competitiveness in the market. To perform a comprehensive evaluation, researchers and financial analysts often employ various models and frameworks. One such widely recognized and effective framework is the CAMEL model, which stands for Capital adequacy, Asset quality, Management efficiency, Earnings capability, and Liquidity position. Each component of this model enables stakeholders to gain valuable insights into the strengths and weaknesses of these institutions, helping them to make informed decisions about investments, risk management, and regulatory oversight, and collectively, help in evaluating the institution's overall stability and potential for future success. In this study, the author applies the CAMEL model to conduct performance analysis of selected banks in India. Through a systematic examination of their capital adequacy, asset quality, management efficiency, earnings capability, and liquidity position, the study aims to provide valuable insights into banks overall performance and identify areas for improvement. This research holds significance not only for investors and financial institutions but also for regulators, policymakers, and academics. It contributes to the existing body of knowledge on bank performance evaluation and aids in decision-making processes that promote a stable and resilient banking sector

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