A STUDY ON FINANCIAL PERFORMANCE OF PUBLIC SECTOR BANKS IN AFGHANISTAN USING CAMEL MODEL

This study attempts to measure the financial performance of public sector banks in Afghanistan for the period of four years (2014 to 2017) using CAMEL approach. CAMEL stands for Capital Adequacy, Asset Quality, Management Soundness, Earning Quality and Liquidity To accomplish the task, I have chosen three banks out of four banks operating in public sector in Afghanistan. Financial statements of the selected banks are then examined and evaluated for the period of 4 years (from 2014 to 2017) with the help of some ratios. Nowadays, banking sector in Afghanistan is facing the problem of default culture, which is the result of inefficient performance of most banks. The performance of the banks are dependent more on the management's ability in formulating strategic plans and the efficient implementation of these plans. The findings of this study can be very helpful for the management of the banks to improve their financial performance and formulate such policies that help to improve the overall financial performance. This study also identify factors that influence performance of banks.