CONCLUSION

CAMEL model is important tool to assess the relative financial strength of a bank and to suggest suitable measures to improve its weaknesses. In the present study CAMEL ranking approach is used to assess relative performance of selected Indian banks. The study observed that there is significant difference between the mean values of CAMEL ratios of public sector banks. If we see the capital adequacy part of this analysis all the banks has good CAR as there is not as much difference in the value of this ratio. Also if we see the debt equity ratio in this category there also there is not much differences in this ratio but J&K bank has quite lesser amount. From these two ratio it is evident that J&K bank is doin good in capital adequacy but it loses its plot when we to the remaining two ratio i.e. advance/asset and govt. securities to investment. The J&K bank is not providing much of the advances thus losing the various profit opportunities. But for the other public sector banks these ratio are in a narrow range pretty much same. Also there is a lack of planning in the investment in the J&K bank as there most of the investment is not in govt. securities i.e. they are making high risk investment. From the asset management prospective of these banks, J&K bank is seem to have being doing a quite a lot better than the other banks. The net NPA to advances value of J&K bank is quite significantly lesser than the other banks. There may be this reason also to this as J&K bank is not giving that much esay loans or advances as evident from that of advances to tota; asset ratio. And the reason for the lower amount advances may be also that the J&K bank has very high investment to asset ratio depicting that lesser share of advances in its asset. The BOB seems to have managed there asset quite well as compared to these banks its NPA to total asset and total investment to asset ratio is quite good. Also the J&K bank by virtue of its lesser NPA has quite a lesser amount of net NPA to total asset value followed by BOB. Also J&K bank is the only bank which have attained the negative growth in NPA. The percentage increase in NPA of the BOB BOI and PNB is quite high. These banks are nearly doubling their NPA. As of SBI it is going worse in the NPA to advances ratio. But the good thing is that as compared to that of the other public sector banks it still have quite less amount of NPA. Management efficiency is very important aspect for any sort of the organization. As discussed earlier because of lower amount of advances the J&K bank have the worst advances to deposit ratio. The best conversion of the deposit into the advances is being done by the state bank of India. The profit per employee is best in case of that of BOB with a quite a much difference with

other other banks. The SBI have the worst profit/employee ratio. Now if we see the income per employee the SBI seems to be quite good which depicts that there are quite a large no. of undue expense which are borne by the SBI. Now coming to aspect of return on equity PNB is seem to be doing quite well. There is a marginal difference between the of J&K bank, PNB and BOI but that of BOI and SBI it is quite less. In this there is quite a lot of differences in all of the four ratio for all the banks i.e. one bank is good at one thing other in another. The another very important aspect of the CAMEL model is the earning quality. As evident from the previous ratio the best operating profit to total asset is being obtained by that J&K bank, also the same is the trend with that of the net profit to total asset. Now in the interest income to total income all the banks are doing quite well with J&K bank leading with 91.45 %. If we compare these banks there is not much to discuss about it. Thus in this ratio all the banks are performing well but as of BOI and SBI in case of net profit to asset ratio. The aspect is a quite a significant one. In this all the banks seem to have quite a sufficient no. of the liquid asset but not of the SBI. SBI have very poor liquid asset to total asset ratio and also liquid asset to total deposit ratio. If there comes heavy demand of withdrawal this bank may go in the trouble. Now coming to the part of the liquid asset to demand deposites, the BOB and BOI have quite a large amount of liquid asset. This thing may not be good as these asset can be invested somewhere else to get the profits. The PNB has good ratio for this but for SBI and J&K bank it is a sort of below par. When we complied all these result and formed a composite overview we get to the conclusion that bob is ranked 1 with some consistence performance in all these parameters of CAMEL model. As of J&K bank it has some good points in case of asset management and earning but then performed equally worst in other parameters result in falling below to rank 2 jointly with that of PNB. PNB has performed consistently average in all the parameters. The SBI is the worst performing bank as it get consistently lower score in all the aspects.