Measuring Performance of Private Sector Banks in India: A CAMELS Model Approach

In stimulation of capital formation, innovation and monetization in addition to facilitation of monetary policy is encouraged by banking sector. It is important to carefully evaluate and analyse the performance of banks to ensure a healthy financial system and an efficient economy. The present study attempts to evaluate the performance of private sector banks in India using CAMEL Rating Model for a five-year period from 2017-21. It is concluded from the study that INDUSIND is performing well in all six parameters of model whereas ICICI has poor performance compare to other banks. The study is limited to analysing five private banks of India, based on market capitalisation, it can be further expanded for other banks too