A Study on Efficiency and Performance of Private Sector Banks

Abstract

In the widespread economic arena for economic development of an economy , the role and prominence of newlinebanking system cannot be undervalued. The performance of banking sector is deliberated as an effective measure or newlinequantum to observe the financial fitness of an economy. For the assessment of performance of banks in India, newlineReserve Bank of India has recommended two supervisory rating models (Capital Adequacy, Assets Quality, newlineManagement, Earning, Liquidity, and Sensitivity) and CACS (Capital Adequacy, Assets Quality, Compliance, newlineSystems and Controls). newlineThe present study is an attempt to use the CAMELS rating model to assess the status and performance of select set newlineof private sector banks. The CAMELS model is applied on the secondary data related to different ratios obtained newlinefrom Reserve Bank of India annual reports covering the period from 2009-2010 to 2013-2014. The objective was to newlineconduct a multidimensional performance analysis of the core banking sector in India. newline