Comparative Analysis of Financial Performance of Top Six Commercial Banks Based on Camels Approach

The role of the Financial Sector is very important for the well-being of the nation’s economy. The banking industry is the essential component of any financial system, therefore an efficient and essential way to gauge the strength of an economy’s financial system is to look at the banking sector’s financial performance. The Camel approach serves as an important tool for evaluating the comparative financial strength of a bank and recommending essential actions to address its weaknesses. In India, the Reserve Bank of India (RBI) implemented this approach in 1996, following the suggestions made by the Padmanabham Working Group committee in 1995. In the present study an attempt has been made to rank the top six commercial banks in India using the CAMEL model. Analysis is conducted on the financial data of the top three public and private sector banks for a period of 10 years (2015-2024). The financial data is acquired from secondary sources like prowess, Indian Banking Association & RBI websites. The study concluded that HDFC Bank stood at the Top Positions for capital adequacy, management efficiency , assets quality and earning parameters While PNB held the first rank Under liquidity parameter. Under the composite CAMEL ranking HDFC secured the first position followed by SBI, ICICI, Axis Bank, and PNB respectively while BOB held the last position.