Performance Appraisal of Indian Public Sector Banks

18 Pages Posted: 17 Nov 2012

See all articles by Parvesh Aspal

Parvesh Aspal

Punjab Technical University, Jalandhar; Punjab Technical University, Jalandhar

Naresh Malhotra

Doaba College - Post Graduate Department of Commerce & Business Management

Date Written: September 1, 2012

Abstract

The strength of economy of any country basically hinges on the strength and efficiency of financial system, which, in turn, depends upon a sound and solvent banking system. Banks needs to be more closely watched than any other type of economic unit. The regulators have recommended bank’s supervision through CAMEL rating model to assess the performance of banks, which is better than the earlier systems. The present study aims to measure the financial performance of Indian public sector banks excluding State Bank Group for the period of 2006-11. The study found that Bank of Baroda was at the first position with overall composite ranking average of 6.05 due to its better performance in the areas of liquidity and asset quality, closely followed by Andhra Bank with overall composite ranking average of 6.15 because of its strength in the spheres of management efficiency, capital adequacy and asset quality. United Bank of India hold the bottom most rank with overall composite ranking average of 14.60 due to management inefficiency, poor assets and earning quality. The study recommends that United Bank of India has to improve its management efficiency, assets and earning quality. Similarly Bank of Maharashtra should take necessary steps to improve its liquidity position and management efficiency.

Keywords: Indian Public Sector Banks, CAMEL, Performance Appraisal

JEL Classification: G21, G24, G28

Suggested Citation

Aspal, Parvesh and Malhotra, Naresh, Performance Appraisal of Indian Public Sector Banks (September 1, 2012). Proceedings of 19th International Business Research Conference, 2012. Available at SSRN: https://ssrn.com/abstract=2176875

Parvesh Aspal (Contact Author)

Punjab Technical University, Jalandhar ( email )

Jalandhar - Kapurthala Highway
Kapurthala
Punjab, Jalandhar, Punjab
India
9478098032 (Phone)

Punjab Technical University, Jalandhar ( email )

Jalandhar - Kapurthala Highway
Kapurthala
Punjab, Jalandhar, Punjab
India
9478098032 (Phone)

Naresh Malhotra

Doaba College - Post Graduate Department of Commerce & Business Management

Jalandhar, 144 001
India

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