"ANALYSIS OF THE ECONOMIC AND FINANCIAL PERFORMANCE OF PUBLIC SECTOR BANKS IN INDIA USING CAMEL RATING SYSTEM"

Abstract

Utilizing the CAMEL assessment methodology, this research offers a thorough examination of the financial and economic performance of PSBs in India. Five important criteria are used to assess banks in the CAMEL framework: capital adequacy, asset quality, earnings capacity, liquidity management, and management quality. The CAMEL rating methodology gets a complete picture of a bank's stability and health by looking at all these things. This study compiles and analyzes financial data from a subset of PSBs during the last five years. To evaluate how well each bank is doing across all of the CAMEL criteria, we compute a number of financial ratios and indicators. Qualitative aspects, like methods of risk management and corporate governance, are also considered. The fundamental goal of this research into India's banking system is to examine the financial performance of the country's most important public sector banks. We began analyzing these banks' financial performance in the 2019–2022 fiscal year and carried it out until the 2019–2023 fiscal year. Public sector banks' financial performance may be assessed using a process called Financial Ratio Analysis (FRA), an abbreviation for "Financial Performance Analysis," which involves examining the ratios of each individual bank. Banks and other financial entities benefited from this study's findings.