Performance Evaluation of Public Sector, Private Sector and Multistate Cooperative Banks in India-A Study

The banking industry in India as a whole is making significant contributions for the development of the economy and helping to achieve sustainable growth. The banks are helping the economy in terms of effective capital formation, effective lending and contributing to the development of the nation, thus banks need to be more closely watched. In India banks are one of the healthiest performers in the world banking industry seeing tremendous competitiveness, growth, efficiency, profitability and soundness, especially in the recent years. The main goal of banks today is to ensure stability and make sure that they are internally sound and sensible. Hence, it is important to measure soundness across various banks in the country and identify the weaker sections of the banking sector, devise appropriate strategies and policies to lift these sections and eventually create an environment that leads banks to be sound and results in stability. The CAMEL model in banking sector is widely used all over the world to ascertain the performance of the banks operating in various sectors. In the present study an attempt is made to evaluate relative performance of banks in India using CAMEL approach. In the present study while the comparing the performance of three categories of banks in various sectors it is observed that among the banks in public sector Bank of Baroda was considered to be better, whereas among private sector banks ICICI banks was better and in multistate cooperative banks the Punjab Maharashtra cooperative bank was better on certain parameters of camel model.