A Comparative Study on Financial Performance of Public Sector Banks in India Through Camel Model

Abstract

The wider objective of the banking sector reforms in India has been to improve and increase efficiency and profitability of the banks. The banking sector in India has continuously undergone various changes in the areas of prudential, regulatory, disclosure and supervisory norms. It has been passing through the liberalisation process and deregulation of interest regime at the same time. Commercial banks, especially the dominant public sector banks, have been facing competition from their rival banks. The present study is an attempt to compare financial performance of public sector banks based on the CAMEL variables and to find out whether the average performance of both public sector banks differ significantly.