Performance Assessment of Banks Using CAMELS Framework

Vinimaya - National Institute of Bank Management, Vol. XXX, No.4, January -March 2010

12 Pages Posted: 11 May 2021

See all articles by Vipin Benny

Vipin Benny

St.Thomas' College (Autonomous), Thrissur

Date Written: March 30, 2010


In this paper an attempt has been made to evaluate the performance of scheduled private sector banks headquartered in Thrissur, Kerala. All the banks are fundamentally strong, one bank is relatively superior in respect capital adequacy, asset quality, whereas the others are relatively strong with regards to management efficiency and earrings quality. Capital adequacy was analyzed with the help of capital adequacy ratio, debt-equity ratio, advances to assets ratio, and government securities to total investment ratio. The asset quality was examined with the components of non-performing assets. The management efficiency was evaluated with the parameters like total advances to total deposit ratio, profit per employee, business per employee, return on net worth, branch productivity and branch profitability. The earnings quality was assessed with net interest margin, percentage of growth in net profit, non-interest income to total income and interest income to total income. Liquidity aspects deal with liquid assets to deposits, and securities to assets. The systems and control were evaluated with reference to qualitative factors. This is an academic exercise to understand the relevance of CAMELS in assessing performance of banks.

Keywords: Capital Adequacy , Asset Quality, Management, Earnings , Liquidity, Systems and Control

JEL Classification: G20

Suggested Citation

Benny, Vipin, Performance Assessment of Banks Using CAMELS Framework (March 30, 2010). Vinimaya - National Institute of Bank Management, Vol. XXX, No.4, January -March 2010, Available at SSRN:

Vipin Benny (Contact Author)

St.Thomas' College (Autonomous), Thrissur ( email )

College Road
Thrissur, 680001

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