A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF PUBLIC, PRIVATE AND FOREIGN BANKS IN INDIA THROUGH CAMEL RATING SYSTEM

In today's scenario, the banking sector is one of the fastest growing sectors and many funds are invested in Banks. Also today's banking system is becoming more complex. So, we thought of evaluating the performance of the banks. There are so many models of evaluating the performance of the banks, CAMEL Rating has been considered as one of the widely used tools for judging capital adequacy, asset quality, management capacity, earnings ability, and liquidity of the financial institutions including commercial banks by the principal regulators all around the world. This paper examines the comparative performance of leading public sector, private sector and foreign banks. Data have been collected though annual reports of the consecutive nine years i.e. 2008-09 to 2016-17 of all the banks. The calculated ratios for all the banks interpreted by CAMEL Model parameters. The study concluded that Foreign Banks perform well as compare to Public sector and Private sector banks in terms of Capital Adequacy, Management Efficiency and in Liquidi Management. In term of Assets Quality Private sector banks preform well as compare to Public sector banks and Foreign Banks with lowest average of 1.0973. In terms of Earning Quality Public sector banks perform well as compare to Private sector banks and Foreign banks with higher average of 19.2344. The Overall all financial performance based on CAMEL parameters Foreign banks topped and obtained overall first rank by having average of 14.0047 followed by Public sector banks (11.756) and Private sector Banks (11.2778). On the whole, it is observed that Foreign Banks outperformed public sector and private sector banks with regard to CAMEL framework as a method of measuring and managing performance of the bank under financial measure