Performance of Banking Sector in India

Abstract

Banking sector performance is always been a major contributor to overall countries growth and its development. Evaluation of banking sector s performance in India is a very authentic and reliable pointer to see the health and safety of the economy, which is not an easy task. Many factors need to be considered while evaluating bank s performance. To study bank s health, CAMEL which involved five important parameters named Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality and liquidity has been used. DEA, further has been run to assess the bank s productive efficiency to measure bank s potential. An attempt has been made to validate bankruptcy model on RBI announcements on mergers and winding up. An effort has been made to minimize loss and maximize return for the shareholders and traders in the negative scenario of banking performance by developing a model named Swing Trading Model and by using NPA as a catalyst. 41 banks from different banking sector involved public banks, private banks and foreign banks for the year 2001-2016. newline