Financial Performance Evaluation of Selected Small FinanceBanks in India: A CAMEL Model Approach

It is of utmost importance to monitor the financial performance of banks to ensure that they are adhering to regulatory compliance guidelines set by the Reserve Bank of India. Small finance banks fall under the niche category of banks that are established in order to pro-‎mote financial inclusion. Capital Small Finance Bank is the first bank that was licensed as an SFB in 2016. Currently, there are 11 small fi-‎finance banks licensed by the RBI. Recently, Fincare SFB was merged with AU SFB. This study is going to measure the financial performance ‎of all 11 small finance banks on the basis of the CAMEL model framework, which includes the parameters of capital adequacy, asset quality, ‎management efficiency, earnings, and liquidity. Various financial indicators have been used to comprehensively analyse all the parameters. ‎Secondary data has been collected for the year 2024 from the RBI’s database and annual reports of all the SFBs. Ranking method and ANOVA ‎have been used for research analysis. It finds out that the overall performance of Capital SFB and ESAF SFB has been the best; however, North ‎East SFB has to work vigorously on its Asset quality and its management efficiency‎.