A CAMEL Model Analysis of State Bank Group

20 Pages Posted: 18 Nov 2012

See all articles by Dr Sushendra Kumar Misra

Dr Sushendra Kumar Misra

Dr B R Ambedkar National Insitute of Technology; Punjab Technical University

Multiple version iconThere are 2 versions of this paper

Date Written: November 16, 2012

Abstract

The economic importance of banks to the developing countries may be viewed as promoting capital formation, encouraging innovation, monetization, influence economic activity and facilitator of monetary policy. Performance evaluation of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. In the present study an attempt was made to evaluate the performance & financial soundness of State Bank Group using CAMEL approach. It is found that in terms of Capital Adequacy parameter SBBJ and SBP were at the top position, while SBI got lowest rank. In terms of Asset Quality parameter, SBBJ held the top rank while SBI held the lowest rank. Under Management efficiency parameter it was observed that top rank taken by SBT and lowest rank taken by SBBJ. In terms of Earning Quality parameter the capability of SBM got the top rank while SBP was at the lowest position. Under the Liquidity parameter SBI stood on the top position and SBM was on the lowest position. SBI needs to improve its position with regard to asset quality and capital adequacy, SBBJ should improve its management efficiency and SBP should improve its earning quality.

JEL Classification: G21, G24, L25

Suggested Citation

Misra, Sushendra Kumar, A CAMEL Model Analysis of State Bank Group (November 16, 2012). Proceedings of 19th International Business Research Conference, 2012. Available at SSRN: https://ssrn.com/abstract=2177081 or http://dx.doi.org/10.2139/ssrn.2177081

Sushendra Kumar Misra (Contact Author)

Dr B R Ambedkar National Insitute of Technology ( email )

NH 1
Jalandhar, 144022
India
9478098010 (Phone)

HOME PAGE: http://www.nitj.ac.in

Punjab Technical University ( email )

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Kapurthala, 146001
India
919478098010 (Phone)
911822662530 (Fax)

HOME PAGE: http://ptuaccounts.ac.in

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