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ABSTRACT
The banking sector's performance is seen as the replica of economic activities of the nation as a healthy banking system acts as the bedrock of social, economic and industrial growth of a nation. Banking institutions in our country have been assigned a significant role in financing the process of planned economic growth Sound financial health of a bank is the guarantee not only to its depositors but is equally significant for the shareholders, employees and whole economy as well. As a sequel to this maxim, efforts have been made from time to time, to measure the financial position of each bank and manage it efficiently and effectively. In this paper, an effort has been made to evaluate the financial performance of the two major banks operating in India .This evaluation has been done by using CAMEL Parameters, the latest model of financial analysis.
Keywords: financial performance, commercial banks, capital Adequacy, asset quality, management capability, earnings analysis, liquidity analysis.
INTRODUCTION
In this era of liberalization, Privatization and globalization banking sector has become backbone of InjkäE^onomyHraa a day s banking sector being an integral part of Indian financial system" has-tHidergone4||ftmatic changes reflecting the ongoing economic and financial sector reform! Two decades have elapsed since the initiation of banking sector reforms in India. Over this period, the banking sector has experienced a paradigm shift. Hence, it is high time to make performance appraisal of this sector. Accordingly, a framework for the evaluation of the current strength of the system, and of operations and the performance of the banks has been provided by Reserve Bank's measuring rod of 'CAMELS' which stands for capital adequacy, assets quality, management efficiency, earning quality, liquidity and internal control systems. As efficient banking systems contribute in an extensive way for higher economic growth in any country, studies in this nature are very important for policy makers, industry leaders and many others who are reliant on the banking sector. The banking sector has been undergoing a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at the same time forging its links firmly with the real sector for promotion of savings, investment and growth.RBI had set up a working group headed by Shri.S.Padmanabhan to take...