A STUDY OF FUNDAMENTAL AND FINANCIAL

PERFORMANCE ANANLYSIS OF LEADING PRIVATE

AND PUBLIC SECTOR BANKS UNSING CAMEL MODEL

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR
Post Graduate Diploma in Management (PGDM)
2021 – 2023

SUBMITTED BY
ASHISH PRADIP SHINDE
ROLL NO.: PG-21-175

PROJECT GUIDE
DR RICHA CHAUDHARY

IES’s MANAGEMENT COLLEGE AND RESEARCH CENTRE

BANDRA (W), MUMBAI
 IES’s Management College and Research Centre
Bandra (W), Mumbai

Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the
award of Select your course, to IES’s Management College and Research Centre is my
original work and not used anywhere for award of any degree or diploma or fellowship or
for similar titles or prizes.

I further certify that without any objection or condition, subject to the permission of the
company where I did my management project, I grant the rights to IES’s Management
College and Research Centre to publish any part of the project, if they deem fit in
journals/Magazines and newspapers etc without my permission.

Place: Mumbai _______________________

Date: 25/03/2023 Signature
Ashish Pradip Shinde
Select your course PG-21-175

i
IES’s Management College and Research Centre,
Mumbai

Certificate from the Guide

This is to certify that the project titled Click here to enter text. has been submitted in
partial fulfilment for the award of Pharmaceutical Management, 2021 – 2023 of
IES’s Management College and Research Centre, is a result of the bonafide project
work carried out by Mr. / Ms. Ashish Pradip Shinde under the supervision and
guidance of Dr. Richa Chaudhary.
No part of this report has been submitted for the award of any other degree, diploma,
fellowship or other similar titles or prizes. The work has also not been published in
any journals/ Magazines.

--------------------------------------------------------- ---------------------------------------------------------
-
Guide : Dr. Richa Chopudhary Director : Dr. Vijay Bhangale
Place: Mumbai Place : Mumbai
Date: Date :

ii
 Acknowledgements

As a part of the curriculum at IES MCRC, the PGDM Program aims at the overall
development of the students by providing them with the opportunity to gain corporate
exposure and space to apply their theoretical knowledge in practice.

Through this report, I take the opportunity to express my sincere gratitude and thankfulness
to all those who have helped me. I would also like to thank my faculty guide, Dr. Richa
Chaudhary, for guiding us in every possible manner.

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Table of Contents
Executive Summary_______________________________________________________1
1. Chapter 1___________________________________________________________3
1.1. Introduction___________________________________________________________3
2. Chapter 2__________________________________________________________20
2.1. Literature Review______________________________________________________20
3. Chapter 3__________________________________________________________21
3.1. Methodology__________________________________________________________21
3.2. Scope and Limitations__________________________________________________22
4. Chapter 4__________________________________________________________23
4.1. Analysis & Findings/ Observations_______________________________________23
5. Chapter 5__________________________________________________________70
5.1. Conclusions___________________________________________________________70
5.2. Recommendations_____________________________________________________71
6. References_________________________________________________________72
7. Annexures__________________________________________________________73

Table 4.1 - C. 1 Capital Adequacy Ratio (PSUBanks).......................................................23

Table 4.1 - C. 2 Capital Adequacy Ratio (PVT Banks)......................................................24
Table 4.1 - C. 3 Debt to Equity Ratio (PSU Banks)...........................................................25
Table 4.1 - C. 4 Debt to Equity Ratio (PVT Banks)...........................................................26
Table 4.1 - C. 5 Total Advances to Total asset Ratio (PSU Banks)...................................27
Table 4.1 - C. 6 Total Advances to Total asset Ratio (PVT Banks)...................................28
Table 4.1 - C. 7 Government Securities to Total Investment Ratio (PSU Banks)............29
Table 4.1 - C. 8 Government Securities to Total Investment Ratio (PVT Banks)............30

Table 4.1 - A. 1 Gross NPA to Net Advances Ratio (PSU Banks).....................................31

Table 4.1 - A. 2 Gross NPA to Net Advances Ratio (PVT Banks).....................................32
Table 4.1 - A. 3 Net Non-Performing Assets (NPA) to Net Advances Ratio (PSU Banks)
..............................................................................................................................................33
Table 4.1 - A. 4 Net Non-Performing Assets (NPA) to Net Advances Ratio (PVT Banks)
..............................................................................................................................................34
Table 4.1 - A. 5 Total Investment to Total Assets Ratio (PSU Banks)..............................35
Table 4.1 - A. 6 Total Investment to Total Assets Ratio (PVT Banks)..............................36

Table 4.1 - M. 1 Total Expenditure to Total Income Ratio (PSU Banks).........................37

Table 4.1 - M. 2 Total Expenditure to Total Income Ratio (PVT Banks).........................38

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Table 4.1 - M. 3 Total Advance to Total Deposit Ratio (PSU Banks)...............................39
Table 4.1 - M. 4 Total Advance to Total Deposit Ratio (PVT Banks)...............................40
Table 4.1 - M. 5 Asset Turnover Ratio (ATR) (PSU Banks).............................................41
Table 4.1 - M. 6 Asset Turnover Ratio (ATR) (PVT Banks).............................................42
Table 4.1 - M. 7 Diversification Ratio (DIVRSF ratio) (PSU Banks)..............................43
Table 4.1 - M. 8 Diversification Ratio (DIVRSF ratio) (PVT Banks)..............................44
Table 4.1 - M. 9 Business Per Employee (BPE) (PSU Banks)..........................................45
Table 4.1 - M. 10 Business Per Employee (BPE) (PVT Banks)........................................46
Table 4.1 - M. 11 Profit Per Employee (PPE) (PSU Banks).............................................47
Table 4.1 - M. 12 Profit Per Employee (PPE) (PVT Banks).............................................48

Table 4.1 - E. 1 Net Profit Margin (NPR) (PSU Banks)...................................................49

Table 4.1 - E. 2 Net Profit Margin (NPR) (PVT Banks)...................................................50
Table 4.1 - E. 3 Return on Equity (ROE) (PSU Banks)....................................................51
Table 4.1 - E. 4 Return on Equity (ROE) (PVT Banks)....................................................52
Table 4.1 - E. 5 Net Interest Margin (NIM) (PSU Banks)................................................53
Table 4.1 - E. 6 Net Interest Margin (NIM) (PVT Banks)................................................54
Table 4.1 - E. 7 Interest Spread (IS) (PSU Banks)............................................................55
Table 4.1 - E. 8 Interest Spread (IS) (PVT Banks)............................................................56
Table 4.1 - E. 9 Interest Income to Total Income Ratio (PSU Banks).............................57
Table 4.1 - E. 10 Interest Income to Total Income Ratio (PVT Banks)...........................58

Table 4.1 - L. 1 Cash to Deposit Ratio (CD Ratio) (PSU Banks)......................................59

Table 4.1 - L. 2 Cash to Deposit Ratio (CD Ratio) (PVT Banks).....................................60
Table 4.1 - L. 3 Government Securities to Total Asset Ratio (PSU Banks)......................61
Table 4.1 - L. 4 Government Securities to Total Asset Ratio (PVT Banks)......................62
Table 4.1 - L. 5 Total Investment to Total Deposit Ratio (PSU Banks)............................63
Table 4.1 - L. 6 Total Investment to Total Deposit Ratio (PVT Banks)............................64
Table 4.1 - L. 7 Interest Expended to Interest Earned Ratio (PSU Banks)......................65
Table 4.1 - L. 8 Interest Expended to Interest Earned Ratio (PVT Banks)......................66

Figure 4.1 - C. 1 Capital Adequacy Ratio (PSU Banks)....................................................23

Figure 4.1 - C. 2 Capital Adequacy Ratio (PVT Banks)....................................................24
Figure 4.1 - C. 3 Debt to Equity Ratio (PSU Banks).........................................................25
Figure 4.1 - C. 4 Debt to Equity Ratio (PVT Banks).........................................................26
Figure 4.1 - C. 5 Total Advances to Total asset Ratio (PSU Banks).................................27
Figure 4.1 - C. 6 Total Advances to Total asset Ratio (PVT Banks).................................28
Figure 4.1 - C. 7 Government Securities to Total Investment Ratio (PSU Banks)..........29
Figure 4.1 - C. 8 Government Securities to Total Investment Ratio (PVT Banks)..........30

Figure 4.1 - A. 1 Gross NPA to Net Advances Ratio (PSU Banks)...................................31

Figure 4.1 - A. 2 Gross NPA to Net Advances Ratio (PVT Banks)...................................32
Figure 4.1 - A. 3 Net Non-Performing Assets (NPA) to Net Advances Ratio (PSU Banks)
..............................................................................................................................................33

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Figure 4.1 - A. 4 Net Non-Performing Assets (NPA) to Net Advances Ratio (PVT Banks)
..............................................................................................................................................34
Figure 4.1 - A. 5 Total Investment to Total Assets Ratio (PSU Banks)............................35
Figure 4.1 - A. 6 Total Investment to Total Assets Ratio (PVT Banks)............................36

Figure 4.1 - M. 1 Profit Per Employee (PPE) (PVT Banks).............................................37

Figure 4.1 - M. 2 Total Expenditure to Total Income Ratio (PVT Banks).......................38
Figure 4.1 - M. 3 Total Advance to Total Deposit Ratio (PSU Banks).............................39
Figure 4.1 - M. 4 Total Advance to Total Deposit Ratio (PVT Banks).............................40
Figure 4.1 - M. 5 Asset Turnover Ratio (ATR) (PSU Banks)...........................................41
Figure 4.1 - M. 6 Asset Turnover Ratio (ATR) (PVT Banks)...........................................42
Figure 4.1 - M. 7 Diversification Ratio (DIVRSF ratio) (PSU Banks)............................43
Figure 4.1 - M. 8 Diversification Ratio (DIVRSF ratio) (PVT Banks)............................44
Figure 4.1 - M. 9 Business Per Employee (BPE) (PSU Banks)........................................45
Figure 4.1 - M. 10 Business Per Employee (BPE) (PVT Banks)......................................46
Figure 4.1 - M. 11 Profit Per Employee (PPE) (PSU Banks)...........................................47
Figure 4.1 - M. 12 Profit Per Employee (PPE) (PVT Banks)...........................................48

Figure 4.1 - E. 1 Net Profit Margin (NPR) (PSU Banks).................................................49

Figure 4.1 - E. 2 Net Profit Margin (NPR) (PVT Banks).................................................50
Figure 4.1 - E. 3 Return on Equity (ROE) (PSU Banks)..................................................51
Figure 4.1 - E. 4 Return on Equity (ROE) (PVT Banks)..................................................52
Figure 4.1 - E. 5 Net Interest Margin (NIM) (PSU Banks)..............................................53
Figure 4.1 - E. 6 Net Interest Margin (NIM) (PVT Banks)..............................................54
Figure 4.1 - E. 7 Interest Spread (IS) (PSU Banks)..........................................................55
Figure 4.1 - E. 8 Interest Spread (IS) (PVT Banks)..........................................................56
Figure 4.1 - E. 9 Interest Income to Total Income Ratio (PSU Banks)...........................57
Figure 4.1 - E. 10 Interest Income to Total Income Ratio (PVT Banks).........................58

Figure 4.1 - L. 1 Cash to Deposit Ratio (CD Ratio) (PSU Banks)...................................59

Figure 4.1 - L. 2 Cash to Deposit Ratio (CD Ratio) (PVT Banks)...................................60
Figure 4.1 - L. 3 Government Securities to Total Asset Ratio (PSU Banks)....................61
Figure 4.1 - L. 4 Government Securities to Total Asset Ratio (PVT Banks)....................62
Figure 4.1 - L. 5 Total Investment to Total Deposit Ratio (PSU Banks)..........................63
Figure 4.1 - L. 6 Total Investment to Total Deposit Ratio (PVT Banks)..........................64
Figure 4.1 - L. 7 Interest Expended to Interest Earned Ratio (PSU Banks)....................65
Figure 4.1 - L. 8 Interest Expended to Interest Earned Ratio (PVT Banks)....................66

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 Executive Summary

As a vital component of financial systems, the bank system is essential to the nation's
economic development. The deployment and effective use of capital, as well as the
operational effectiveness of the various sectors, are key factors in the economy's
success. The banking industry aids in fostering capital expansion, innovation, and
monetization in addition to monetary policy. It's crucial to properly analyze and
assess the performance of banks if we want to keep our financial system stable and
our economy growing. By putting in place a regulatory framework for financial
supervision, banking performance is evaluated. The CAMEL rating system is one
such supervisory regulating tool. A camel method is a useful tool for assessing a
bank's relative financial health and for suggesting appropriate actions to address any
weaknesses. Therefore, the purpose of this paper is to compare the performance of
private and public sector banks using the CAMEL model. Here, the performance of
banks is examined using the 5 CAMEL criteria: Capital Adequacy, Asset Quality,
Performance Management, Earning Ability, and Liquidity.

From the fiscal year 2013 through the year 2022, this research obtained data from
banks in the public and private sectors. Since the analysis' primary focus was on the
financial information of the aforementioned banks' secondary resonances, it was
merely an empirical design. This analysis draws heavily on secondary sources,
including the online databases of the banks, the RBI bulletin, and their websites.
Data from private and public sector banks' annual reports that pertain to capital
sufficiency, asset quality, management performance, earnings, and liquidity have
been gathered. Based on the average parameters of each CAMEL model parameter,
the secondary data were ranked for the comparison analysis. The number of ranks
was then adjusted to match each bank's average group for each CAMEL criterion.
The composite rankings for the banks were ultimately determined by adding these
group averages.

In this study, it is observed that Private selected private-sector banks performed well
in comparison with the selected public-sector banks. From the selected private sector
banks, HDFC bank’s overall performance is astonishing. Specifically, Axis Bank’s

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asset quality is very good in the group of selected private sector banks as well as
selected public sector banks. On another side, As per current situation indicates that
YES bank requires serious efforts towards improvements. From the public sector
banks, SBI’s performance is very good although it has a scope for improvement,
especially in respect of capital adequacy.

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 1. Chapter 1
1.1. Introduction
In India, banking first emerged during the late 18th century. The General Bank of
India, started in 1786, and the Bank of Hindustan, founded in 1790, was the first two
banks; both are no longer in existence. The State Bank of India, which began as
Calcutta Bank in June 1806, and nearly became the Bank of Bengal, is the oldest
bank in India. The Bombay Bank and Madras Bank are the other two presidential
banks, and the British East India Company under the charts formed all three. The
President's banks have served as central banks for many years, as do the following.
The Imperial Bank of India was created in 1921 through the merger of three banks.
In 1955, upon India's independence, it changed its name to the State Bank of India.
Any modern economy is built on the banking industry. It is one of the most
significant financial pillars in the financial industry and is crucial to the health of the
economy. The nation's commercial, industrial, and agricultural financial demands
must be met with high commitment and responsibility if its economy is to grow. As
a result, the establishment of banks is integral to the development of the nation. In
India, banks are essential to the country's post-independence economic growth. In
India, the banking industry is crucial since it owns more than half of the financial
sector's assets. With the financial sector modifications that are being phased out,
Indian banks have been going through an incredible period of fast development. The
history of the Indian banking sector spans centuries, from the British era to the
Indian Revolution, and includes ancient banking practices, the absorption of
nationality into contemporary bank owners, as well as the current trend of growing
prices in India. Thus, Indian banking has come a long way. Indian banks can expand
and compete with global banks in two ways: through rural banks and low funding.

With the financial sector modifications that are being phased out, Indian banks have
been going through an incredible period of fast development. The history of the
Indian banking sector spans centuries, from the British era to the Indian Revolution,
and includes ancient banking practices, the absorption of nationality into
contemporary bank owners, as well as the current trend of growing prices in India.
Thus, Indian banking has come a long way. Indian banks can expand and compete

3
with global banks in two ways: through rural banks and low funding. With the
financial sector, and modifications that are being phased out, Indian banks have been
going through an incredible period of fast development. The history of the Indian
banking sector spans centuries, from the British era to the Indian Revolution, and
includes ancient banking practices, the absorption of nationality into contemporary
bank owners, as well as the current trend of growing prices in India. Thus, Indian
banking has come a long way. Indian banks can expand and compete with global
banks in two ways: through rural banks and low funding.

MARKET SIZE

In addition to cooperative credit institutions, the Indian banking system includes 12

public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural
banks, 1485 urban cooperative banks, and 96,000 rural cooperative banks. There
were 213,145 ATMs in India as of September 2021, with 47.5% of them located in
rural and semi-urban areas.

Bank assets increased in all industries in 2020–2022. In 2022, the banking industry’s
total assets (including both public and private sector banks) rose to US$ 2.67 trillion.

The combined assets of the public and private banking sectors were respectively
$1,594.41 billion and $925.05 billion in 2022.

Bank credit grew at a CAGR of 0.62% from FY16 to FY22. Total credit extensions
reached US$ 1,532.31 billion as of FY22. Deposits increased at a CAGR of 10.92%
from FY16 to FY22, reaching US$ 2.12 trillion by FY22. As of November 4, 2022,
bank deposits totalled Rs. 173.70 trillion (2.12 trillion USD).

Credit growth is anticipated to reach 10% in 2022–2023, which will be a double-

digit growth in eight years, according to India Ratings & Research (Ind-Ra). Bank
credit totalled Rs. 129.26 lakh crore ($1.585.09 billion) as of November 4, 2022.
Credit to non-food businesses was at Rs. 128.87 lakh crore ($1.58 trillion) as of
November 4, 2022.

INVESTMENTS/DEVELOPMENTS

Key investments and developments in India’s banking industry include:

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  In June 2022, the number of bank accounts—opened under the government’s
flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana
(PMJDY)’—reached 45.60 crore and deposits in the Jan Dhan bank accounts
totalled Rs. 1.68 trillion (US$ 21.56 billion).
 In April 2022, India’s largest private bank HDFC Bank announced a
transformational merger with HDFC Limited.
 On November 09, 2021, RBI announced the launch of its first global
hackathon 'HARBINGER 2021 – Innovation for Transformation' with the
theme ‘Smarter Digital Payments’.
 In November 2021, Kotak Mahindra Bank announced that it has completed
the acquisition of a 9.98% stake in KFin Technologies for Rs. 310 crores
(US$ 41.62 million).
 In July 2021, Google Pay for Business enabled small merchants to access
credit through a tie-up with the digital lending platform for MSMEs—
FlexiLoans.
 In December 2020, in response to the RBI’s cautionary message, the Digital
Lenders’ Association issued a revised code of conduct for digital lending.
 On November 6, 2020, WhatsApp started UPI payments service in India on
receiving the National Payments Corporation of India (NPCI) approval to
‘Go Live’ on UPI in a graded manner.
 In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the
‘HealthyLife Programme’, a holistic healthcare solution that makes healthy
living accessible and affordable on Apollo’s digital platform.
 In 2019, banking and financial services witnessed 32 M&A (merger and
acquisition) activities worth US$ 1.72 billion.
 In March 2020, the State Bank of India (SBI), India’s largest lender, raised
US$ 100 million in green bonds through private placement.

GOVERNMENT INITIATIVES
 National Asset reconstruction company (NARCL) will take over, 15 non-
performing loans (NPLs) worth Rs. 50,000 crores (US$ 6.70 billion) from the
banks.

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 National payments corporation India (NPCI) has plans to launch UPI lite
which will provide offline UPI services for digital payments. Payments of up
to Rs. 200 (US$ 2.67) can be made using this.
 In the Union budget for 2022-23, India has announced plans for a central
bank digital currency (CBDC) which will be possibly known as Digital
Rupee.
 National Asset reconstruction company (NARCL) will take over, 15 Non-
performing loans (NPLs) worth Rs. 50,000 crores (US$ 6.70 billion) from the
banks.
 In November 2021, RBI launched the ‘RBI Retail Direct Scheme’ for retail
investors to increase retail participation in government securities.
 The RBI introduced new auto debit rules with a mandatory additional factor
of authentication (AFA), effective from October 01, 2021, to improve the
safety and security of card transactions, as part of its risk mitigation
measures.
 In September 2021, the Central Banks of India and Singapore announced to
link their digital payment systems by July 2022 to initiate instant and low-
cost fund transfers.
 In August 2021, Prime Minister Mr Narendra Modi launched e-RUPI, a
personal and purpose-specific digital payment solution. e-RUPI is a QR code
or SMS string-based e-voucher that is sent to the beneficiary’s cell phone.
Users of this one-time payment mechanism will be able to redeem the
voucher at the service provider without the usage of a card, digital payments
app, or internet banking access.
 As per Union Budget 2021-22, the government will disinvest IDBI Bank and
privatize two public sector banks.
 The government smoothly carried out consolidation, reducing the number of
Public Sector Banks by eight.
 In May 2022, Unified Payments Interface (UPI) recorded 5.95 billion
transactions worth Rs. 10.41 trillion (US$ 133.46 billion).
 According to the RBI, India’s foreign exchange reserves reached US$ 630.19
billion as of February 18, 2022.

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 The number of transactions through the immediate payment service (IMPS)
reached 430.67 million and amounted to Rs. 3.70 trillion (US$ 49.75 billion)
in October 2021.

7
CAMEL MODEL

The five components that make up the acronym for CAMEL are utilized by
regulatory banking authorities around the world to grade financial organizations.
"Capital adequacy, Asset quality, Management, Earnings, and Liquidity" is the
meaning of the abbreviation CAMEL. A grading method for on-site analyses of
banking institutions is the CAMEL Rating Framework. The Federal Financial
Institution Examination Council adopted the Uniform Financial Institution Rating
system on November 13, 1979, and the National Credit Union Administration
followed suit in October 1987. This rating system is also known as the CAMEL
rating. It is acknowledged as a useful internal supervisory tool for assessing the
stability of financial institutions, particularly banks. According to this system, each
banking institution that is subject to an onsite inspection is assessed using five so-
called component factors that are key dimensions of its operations and performance.
These include Liquidity, Asset Quality, Management Effectiveness, Capital
Adequacy, and Earnings Quality. The operating, financial, and regulatory
compliance of banking institutions around the world are reflected by these
parameters. A scale from 1 (best) to 5 is used to rank each of the component factors
(worst). The primary indicator of a bank's present financial situation is a composite
rating, which is given. The bank's rating is kept in the strictest confidence and is only
shared with senior management, who use it to project business strategies, and the
proper supervisory staff (Hirtle and Lopez, 1999). The CAMEL components
accurately reflect banks' soundness and safety (Barr et al., 2002). This system for
evaluating the performance of Indian commercial banks has been approved by the
RBI (Bodla and Verma, 2006).

CAPITAL ADEQUACY

An important sign of a banking entity's financial stability is capital adequacy. This

shows the bank's ability to keep capital in line with the nature and severity of all
risks, as well as the managers' capacity to recognize, quantify, monitor, and manage
these risks. It displays the banks' general financial health as well as the
management's capacity to raise further capital when needed. This ratio indicates the
degree of bank leverage. Since capital adequacy is crucial for a bank to maintain and

8
defend stakeholders' confidence and keep the bank from going bankrupt, depositors
can more easily create their opinion of the risk that the organization poses by taking
advantage of the capital base of financial institutions. Capital is viewed as a safety
net to safeguard depositors and support the global financial systems' efficiency and
stability. Additionally, it states whether the bank has enough capital to handle
unexpected losses. It also serves as a limit for financial managers to keep proper
capitalization levels. In contrast to the 8% recommended in Basel protocols, the
Reserve Bank of India mandates that banks maintain a minimum Capital risk-
weighted Assets Ratio (CRAR) of 9% for credit risk, market risk, and operational
risk on an ongoing basis.

The following ratios measure Capital Adequacy:

Capital Adequacy Ratio (CAR)

The capital adequacy ratio is the ratio that defends against insolvency, shields
against excess debt, and keeps banks out of trouble. The ratio of a bank's capital to
its current liabilities and risk-weighted assets is what is meant by this term. Risk-
weighted assets are a measurement of the total assets of banks that have been taken
into account. A sufficient amount of capital adequacy attests to the bank's ability to
expand its operations while also maintaining sufficient net worth to withstand any
downturns in the economy without going bankrupt. The ratio is what determines a
bank's ability to satisfy time liabilities and other risks like credit risk, market risk,
operational risk, etc. According to RBI guidelines, public sector banks are expected
to maintain this ratio at 12%, whereas Indian Scheduled Commercial Banks (SCBs)
are required to have a CAR of 9%, or 1% more than the Basel guidelines. It is
calculated by dividing the total of risk-weighted assets by the sum of Tier-I, Tier-II,
and Tier-III capital (RWA). CAR is denoted by the symbol (Tier-I + Tier-II + Tier-
III)/RWA.

Debt to Equity Ratio

The amount of a bank's activity that is financed by a combination of debt and equity
is indicated by the ratio of debt to equity in the bank. It is an indicator of a bank's
financial leverage. It is determined by dividing the sum of the "Outside Liabilities"

9
by the net worth. Total borrowings, deposits, and other liabilities are referred to as
"Outside Liabilities." Equity Capital reserves and surplus are included in "Net
Worth." Less protection for creditors and depositors inside the financial system is
indicated by a greater ratio. D/E Ratio is denoted symbolically as Total Outside
Liabilities / Net Worth.

Total Advances to Total Assets Ratio

This is a crucial factor in determining how aggressively banks lend. This percentage
shows how strict a bank is with lending, which eventually leads to more profitability.
Receivables are also included in total advances. The revaluation of all assets is not
included in the total asset value. Tot ADV / Tot ASS Ratio, symbolically, is equal to
Total Advances / Total Assets.

Government Securities to Total Investment Ratio

This ratio evaluates the risk associated with a bank's investment while also indicating
the percentage of safe investments in the total investments made by banks. The most
popular and regarded as the safest debt asset, government securities typically offer
the lowest return. Given that government securities are risk-free, the smaller the
investment risk for a bank is, the larger the proportion of investments made in
government securities. By dividing Government Securities by the bank's Total
Investments, this ratio is calculated. Symbolically, G-Sec / Tot INV Ratio =
Government and State Government securities in India + Government Securities
outside India/ Total Investments.

10
ASSETS QUALITY

Due to the quantity and quality of the bank's loans, advances, investments, and off-
balance sheet activities, asset quality represents the level of credit risk that exists in
the institution. The quality of a bank's assets is what determines the bank's financial
viability. As asset weakening threatens the solvency of financial institutions, notably
banks, asset quality defines the financial health of banks against loss of value in the
assets. The bank's ability to make money eventually suffers as a result of the asset
value decline because losses are ultimately written off against capital. This structure
allows for the measurement of asset quality in terms of the quantity and strength of
nonperforming assets, the adequacy of provisions, the distribution of assets, etc.
Establishing the components of Non-Performing Assets (NPAs) as a percentage of
the total assets is the fundamental tenet of asset quality measurement. This reveals
the quality of the advances the bank has made to earn interest. The sort of debtors
that banks have on their balance sheets are thus determined by asset quality. The
ratios shown below quantify asset quality.

Net Non-Performing Assets to Net Advances Ratio

The ratio of Net Advances to Net Nonperforming Assets The ratio serves as an
indicator of the general quality of bank advances. It demonstrates the bank's true
financial load. An asset is considered an NPA if the interest on it is late by more than
three months or 90 days. Net NPAs are determined by deducting other interest
adjustments and the cumulative balance of provisions still outstanding at the end of
the quarter from gross NPAs. A larger ratio represents the increasing loan default
rate. Symbolically, NNPA’s/ ADV Ratio = Net Non-Performing Assets / Net
Advances.

Gross Non-Performing Assets (GNPA) to Net Advances Ratio

Net Advances to Gross Non-Performing Assets (GNPA) Ratio is a gauge of asset

quality in cases where management has not made provisions for losses due to NPAs.
It reflects the quality of the bank's advances. According to RBI regulations as of the
balance sheet date, gross NPAs are the sum of all loan assets that are categorized as
NPAs. The percentage of Net Advances used to calculate Gross NPAs. A low ratio
shows that the bank has made sound lending decisions and attests to the high quality

11
of advances. Symbolically, GNPA’s/ ADV Ratio = Gross Non-Performing Assets /
Net Advances.

Total Investment to Total Assets Ratio

This ratio identifies the percentage of the bank's total assets that are restricted to
investments that do not contribute to the bank's primary source of revenue as
opposed to being used to fund consumer advances. An aggressive bank will have a
low investment-to-asset ratio since a high ratio indicates that the bank has
traditionally maintained a high level of investment to protect against the risk of Non-
Performing Assets. As a result, banks are less profitable as interest income from
investments is far lower than interest income from making advances. Symbolically,
Tot INV / Tot ASS Ratio = Total Investment / Total Assets.

12
MANAGEMENT EFFICIENCY

The management efficiency criteria indicate the board of directors and senior
managers' capacity to recognize, quantify, track, and manage bank-related risks. The
CAMEL model includes Management Efficiency as a key component. Depending on
how much danger it perceives, the bank's management makes important decisions. It
establishes the organization's vision and goals and ensures that they are met. This
measure is used to assess management effectiveness to reward better-quality banks
with premiums and penalize those that are underwhelmingly managed. Another
crucial element of the CAMEL framework is management efficiency, which is
defined as management's adherence to norms and rules, ability to plan and be
proactive, leadership, inventiveness, and managerial acumen of the top-level
management. The risk management policies and procedures are used as markers of
good management practices in this qualitative assessment, notwithstanding its
subjectivity. The following ratios measure Management Efficiency:

Total Expenditure to Total Income Ratio

Every financial company is committed to spending responsibly because doing so will

increase the bank's revenues. It makes sense that banks would be able to increase
their return to equity shareholders by closely monitoring their spending. Payroll
costs, technological advancements, and branch rationalization make up a sizable
portion of a bank's operational costs, particularly for newer-generation institutions.
Even while these costs result in a higher ratio of total expenses to total income, they
help the bank in the long run by increasing its return to equity shareholders. A lower
ratio is ideal for banks since it will increase their profitability and, as a result, their
dividends to shareholders. Investors can see the bank's operating efficiency from the
ratio; the lower it is, the more profitable the bank will be. Changes in the ratio may
also draw attention to potential issues. When the ratio increases from one period to
the next, costs are increasing faster than revenue. Symbolically, Tot EXP / Tot INC
Ratio = Total Expenditure / (Net Interest Income + Non- interest Income)

13
Total Advance to Total Deposit Ratio

Advances are required to generate a profit and pay the interest on the deposits. The
ratio assesses the effectiveness and capability of the bank's management in turning
its deposits—as opposed to other funds like stock capital or other sources of funding
—into high-earning advances. It shows how much money a bank has in advances
compared to the deposits it has raised. A larger ratio denotes greater reliance on
deposits, whilst a lower ratio denotes decreased reliance on deposits. A very low
ratio shows banks are not using all of their resources, yet the regulator does not set a
specific norm or level for the ratio. The ratio, however, implies strain on the bank's
resources if it rises above a particular point, with an asset-liability mismatch creating
a balance sheet that is unhealthy.

This is very concerning because, in addition to producing unfavourable financial

statements, it may also point to capital adequacy problems that would require banks
to obtain additional capital. A case like this is viewed as exceptional because the RBI
frequently makes sure Indian banks don't overextend themselves. Symbolically, Tot
ADV/Tot DEP Ratio = Total Advances / Total Deposit.

Asset Turnover Ratio

Asset Turnover quantifies the rate at which a bank turns over its assets using both
interest and non-interest income. It measures a bank's capacity to effectively produce
income from its assets. The greater ratio shows that the bank is effectively generating
income from all of its assets. Symbolically, ATR = Total Income/ Total Assets.

Diversification Ratio

This ratio measures the bank's capacity to produce income outside of interest from
routine banking operations. Although banks still make a major percentage of their
income through lending, they have recently begun to increase it by engaging in 164
fee-based operations that are distinct from ordinary banking activities (e.g. fees and
commission, trading gains, forex activities, etc.). Today, a significant amount of a
bank's other income comes from fee-based sources. By embracing technology to
create cutting-edge goods for consistent service levels, a bank increases fee income.
Since fee-based income has no connection to a bank's capital adequacy, there is a
tremendous opportunity to create noninterest income. A high ratio denotes a growing

14
share of income derived from fees. Gains on government securities, which vary
according to changes in the economy's interest rates, also have an impact on the
ratio. The cause of this ratio is a matter of some controversy. Few analysts consider a
high number to be a positive sign, as it implies that the bank's earnings are not only
dependent on its lending operations. A small number of analysts have the opposite
opinion, stating that a high level shows the bank is relying on erratic fee-based
revenues that are unpredictable for its earnings. Symbolically, DIVRSF Ratio=
(Total Income - Interest Income) / Total Income.

Profit Per Employee

The profitability of the company as it relates to several employees is measured by

this ratio, which is a crucial factor in determining how effectively the bank is
managed. The ratio shows the surplus per employee earned. It details the typical
profit per person employed. A fair management style will motivate and encourage
staff to increase bank profits. An elevated ratio indicates effective management.
Symbolically, PPE= Profits After-tax/ Number of Employees.

Business Per Employee

The business per employee ratio serves as a tool to assess how effectively all bank
workers generate business for the institution by displaying the productivity of bank
staff. It shows how much revenue each employee generates for the bank. Business is
measured in terms of the bank's total deposits plus total advances for a given year. A
high business per employee ratio indicates that staff members are producing enough
sales or revenue for the bank, which is definite evidence of effective and good
management of the bank. In contrast, a low ratio of is 165 is frequently an indication
of low productivity. A high ratio is good for the bank as it automatically signifies
efficient bank management. Symbolically, BPE= Total Income / Number of
Employees.

15
EARNINGS QUALITY

A key factor in determining a bank's capacity to generate consistent income in the

future is the calibre of its earnings. The bank's capacity to retain and keep this
quality and earn consistently is indicated by the bank's ability to sustain and grow its
future earnings. It serves as a gauge of bank profitability. A bank's primary goal is to
improve its bottom line and generate profit for its stakeholders. The characteristic
becomes more significant because a large portion of a bank's income comes from
fee-based activities including investments, treasury operations, corporate consulting
services, etc. The bank's ability to execute tasks like dividend payments, maintaining
a sufficient amount of capital, implementing expansion and diversification strategies,
and upholding a competitive mindset will all be aided by the quality of its earnings.
However, in addition to the sources of income, the following factors also have a
substantial impact on the financial success of the banks. I. the pattern, magnitude,
and consistency of earnings; II. the standard and sources of profits. Ability to
increase capital through retained earnings (iii). iv. being exposed to market risks
regarding credit loss provisions. A strong earnings performance would boost the
confidence of creditors, investors, depositors, and the general public. The Earnings
Quality is measured by the ensuing ratios.

Net Profit Margin

An essential factor to consider when evaluating the quality of bank earnings is the
net profit margin. The bank's ability to pay dividends and support an increasing trend
in share price is best indicated by growing profits. The ability of the bank to turn
income into profits that are available to shareholders is an indicator of the bank's
quality, and stakeholders pay close attention to the bank's net profit margin. It is
described as a portion of the revenue left over after all operational costs, interest
payments, taxes, and preferred stock dividends other than common stock
distributions have been subtracted from the bank's total income. A large net profit
margin denotes constant and consistent revenue for the bank. Symbolically, NPR =
Net profit After Taxes / Total Income.

16
Return on Equity

As a result of the bank's operating performance, debt-equity management, and asset

turnover, the return on equity (ROE), also known as return on investment (ROI), is a
reliable metric of return. The return on equity (ROE) quantifies the return on the
shareholders' investment in the bank. This ratio evaluates a bank's profitability by
contrasting its net income with its typical shareholders' equity. A bank can generate
additional revenues that flow to shareholders as higher equity if it can mobilize
deposits at a lower rate and advance them to customers to produce higher returns
than the cost of deposits. The higher the ratio percentage, the more efficient the bank
is in earnings and utilizing its equity base to generate a better return to investors.
Symbolically, ROE = Net Income / Average Shareholders’ Equity.

Net Interest Margin (NIM)

A key indicator of a bank's performance is the net interest margin. In terms of a

percentage of total assets, it is the difference between interest income and interest
expenses. NIM demonstrates the bank's capacity to maintain low-interest rates on
deposits and high-interest rates on advances. It is a crucial indicator of a bank's core
income (income from lending operations). Better earnings relative to the total assets
are indicated by a higher NIM. Symbolically, NIM = (Interest Income - Interest
Expense) / Interest-Earning Asset

Interest Spread

Interest spread is the difference between yield and cost of borrowing, where yield is
the interest income produced on the-earning assets and the cost of borrowing is
interest expense charged on interest-bearing liabilities. It shows how much the bank's
ability to earn interest is greater than or less than the obligations it has to pay for
interest. The bank is more likely to be profitable the wider the spread; conversely,
the narrower the gap, the less profitable the bank is. The rate at which an institution
lends immediate cash is mostly influenced by the federal funds rate, although open
market activities eventually shape the rate spread.

Symbolically, IS = (Interest Income/ Interest earning assets) - (Interest Expense/

Interest bearing Liabilities)

17
Interest Income to Total Income Ratio

The ratio of interest income to total income reveals the bank's capacity to generate
interest income from its advances. For banks, interest income is their primary source
of income. In other words, the income from lending activities is calculated as a
proportion of the bank's overall income for the year. The ideal ratio for banks is high
since it denotes regularity in income and represents the bank's income from normal
banking operations. Symbolically, INTINC/ Tot INC Ratio = Interest Income / Total
Income

18
LIQUIDITY

Due to the fierce competition among peer banks and the constant flow of foreign
capital into the domestic markets, liquidity management has become increasingly
important in banks. Every bank needs to make sure that it can keep enough liquidity
on hand to fulfill its financial obligations on schedule. Banks must maintain liquidity
in their assets to meet customer, creditor, and depositor demands because a liquidity
crisis can negatively affect a bank's ability to perform financially. Any company that
deals with money needs to have liquidity, and banks are among the top institutions in
this regard. As such, they must strike the right balance between profitability and
liquidity. Banks' inability to control their short-term liquidity obligations and loan
commitments might negatively affect their performance by sharply raising their cost
of capital. Asset and Liability Management is an efficient method for controlling
liquidity in banks. To maximize returns, it lessens the maturity gaps between assets
and liabilities. The ensuing ratios assess Liquidity

Cash to Deposit Ratio

Because it assesses the quantity of cash the bank has from the deposits it has created,
this is a crucial statistic to use when measuring liquidity. The fact that cash is the
most liquid of all the assets provides a complete picture of the bank's liquidity. As
idle cash yields no returns and subsequently jeopardizes the bank's ability to earn a
profit, banks must maintain a healthy cash-to-deposit ratio to prevent maintaining a
big amount of cash. Symbolically, CD Ratio = Cash / Total Deposits

Government Securities to Total Asset Ratio

Government securities are regarded as the safest and, hence, the most liquid
investment, whether made domestically or abroad. The percentage of the bank's total
assets held in government securities is calculated using this ratio. Although a high
ratio denotes a bank's strong liquidity, it has an impact on the bank's ability to
generate money because, in contrast to other market investment instruments,
government securities do not typically offer significant yields. Despite this, banks
primarily purchase government assets to satisfy their SLR obligations. Symbolically,

19
G-Sec /Tot ASS Ratio = Government and State Government securities in India +
Government Securities outside India/ Total Assets

Total Investment to Total Deposit Ratio

This ratio gauges the liquidity a bank's depositors have access to. It gauges the bank's
ability to meet its obligations to the bank's depositors in terms of liquidity.
Symbolically, INV/DEP Ratio = Total Investment / Total Deposits

Interest Expended to Interest Earned Ratio

By dividing interest expenses by interest income, this ratio calculates interest costs.
It gauges the bank's capacity to cover its interest expenses on deposits with interest
revenue from advances. It also demonstrates how effectively the bank manages its
deposits and advances. If the ratio is less than 1, the bank has solid liquidity since it
is earning enough interest from advances to cover its deposit obligations.
Symbolically, INT EXP/ INT EARN Ratio = Interest Expenditure / Interest Income

OBJECTIVES

 To analyse the concept of CAMEL model approach

 To examine the overall relative financial position of selected Public sector

and Private Sector banks in India
 To measure capital adequacy, asset quality, management efficiency, earning
capacity, and liquidity position of leading public sector and private sector
banks in India

20
 2. Chapter 2
2.1.Literature Review
Swati Sharma Private banks outperform public banks on all fronts except
management, according to the results of the t-test and Mann-Whitney U test used to
test the hypothesis that there is a difference in all the C-A-M-E-L parameters
between private and public banks (M). While there is no discernible difference in the
management efficiency of public and private sector banks, there is a considerable
variation in the ratios of private banks and public sector banks based on capital
adequacy, asset quality, earning quality, and liquidity.

From 2011 through 2016—before demonetization—(Samuel, 2018) analyzed three

banks in particular: IOB, Canara, and Syndicate Bank. It is discovered that these
banks' earning capability and liquidity, rather than their overall level of capital
sufficiency, are their main issues. Low earnings are primarily caused by high NPAs,
slow growth, as well as subpar exports and imports. The fact that Syndicate Bank has
the highest CARR shows that there is room for it to grow its capabilities. All banks
have seen an increase in NPAs, but Indian Overseas Bank is at the greatest risk. All
banks are moving toward convergence over the long term, according to CAMEL
characteristics.

Financial Analysis of Selected Banks Using the CAMEL Approach: A Paper

Concerning the Indian Banking Industry is a study by G. L. Meena (2016). This
study found that, when the return on assets is taken into account as an independent
variable, the four main dependent factors—debt-equity ratio, earnings per employee,
total assets to total deposits ratio, and net non-performing assets to total advances
ratio—have an impact on the financial performance of banks.

Using the CAMEL rating approach, Nimalathasan (2008) evaluated the financial
performance of the Bangladeshi banking industry. 48 banks were included in the
sample, which was collected between 1996 and 2006. Out of the 48 banks, it was
shown that three banks had the best results while 31 others had a respectable
CAMEL overall ratio. Due to increasing NPAs, seven banks came in third.

21
 3. Chapter 3

3.1.Methodology
Data Collection: The present study is based on Secondary data. The performance
of the banks was taken from the RBI bulletin, bank’s websites, Annual financial
reports published by the banks and research papers on financial performance.
Various journals and newspapers were also used to obtain the information about
the market risk and current affairs of the banks.

Selected Banks for the study: Five public sector banks namely (State Bank of
India, Panjab National Bank, Bank of Baroda, Union Bank of India, Canara
bank) and five Private sector banks (ICICI bank, HDFC Bank, AXIS Bank, Yes
Bank and Kotak Mahindra Bank) have been taken as sample

Time Period of the study: The study covers a period of three financial years i.e.
from 2013-2022

Analytical tool: Internationally recognised CAMEL rating factors have been used
to assess the financial health of the chosen public and private sector banks in
India. An abbreviation for five parameters is CAMEL (capital adequacy, assets
quality, management soundness, earnings and liquidity). While CAMEL ranking
shows the bank's position in relation to other banks, CAMEL rating is a
subjective approach that evaluates a bank's financial health. Analyses have been
conducted using ratios and averages. MS-Excel is used for all calculations.

22
3.2.Scope and Limitations
Scope

The goal of the current study is to demonstrate how the CAMEL Analysis Model
may be used to compare the financial performance of some of India's leading
public and private sector banks. We will learn about the financial standing of the
top 10 Indian banks through this study. To determine which bank is in the top
position for performance and efficiency, the study examines five commercial
banks and five public banks in India. CAMEL ratios are used to assess each
bank's performance and efficiency.

Limitations

This study is entirely based on secondary data, so data available in the public
domain is considered for this study. Data beyond the reach of the public domain
is also beyond of this study.

23
 4. Chapter 4

4.1. Analysis & Findings/ Observations

Using the CAMEL MODEL, 10 Banks—5 PSU Banks and 5 PVT Banks—were
analysed. The appropriate ratios were calculated for this study using data from the
previous 10 fiscal years. A ranking of the five PSU and PVT banks was determined
by computations.

Capital Adequacy

Capital Adequacy Ratio

Table 4.1 - C. 1 Capital Adequacy Ratio (PSUBanks)

Capital Adequacy Ratio

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 13.30 12.28 12.60 13.17 12.24 12.13 13.42 13.30 14.99 15.84 13.33 1.00
CANARA 12.40 10.63 10.56 11.08 12.86 13.22 11.90 13.65 13.18 14.90 12.44 3.00
PNB 12.72 11.52 12.21 11.28 11.66 9.20 9.73 14.14 14.32 14.50 12.13 5.00
SBI 12.92 12.96 12.79 13.94 13.56 12.74 12.85 13.13 13.82 13.85 13.26 2.00
Union 11.45 11.89 10.74 11.14 12.91 11.50 11.78 12.81 12.56 14.52 12.13 4.00

Figure 4.1 - C. 1 Capital Adequacy Ratio (PSU Banks)

Capital Adequacy Rati o (PSU Banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
15.84
14.99

14.90

14.52
14.50
14.32
14.14

13.94

13.85
13.82
13.65

13.56
13.42
13.30

13.30

13.22
13.17

13.18

13.13
12.96
12.92

12.91
12.86

12.85

12.81
12.79

12.74
12.72
12.60

12.56
12.40
12.28

12.24

12.21
12.13

11.90

11.89

11.78
11.66
11.52

11.50
11.45
11.28

11.14
11.08

10.74
10.63
10.56

9.73
9.20

BOB C ANARA PNB SBI Union

24
 Table 4.1 - C. 2 Capital Adequacy Ratio (PVT Banks)

Capital Adequacy Ratio

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 17.00 16.07 15.09 15.29 14.95 16.57 15.84 17.53 19.12 18.54 16.60 4.00
HDFC 16.80 16.10 16.80 15.50 14.60 14.80 17.10 18.50 18.80 18.90 16.79 3.00
ICICI 30.80 21.80 17.20 16.70 18.40 18.42 16.89 16.11 19.12 19.16 19.46 1.00
Kotak Bank 17.00 18.90 17.60 17.00 17.20 18.40 17.90 17.90 22.30 22.70 18.69 2.00
Yes 18.30 14.40 15.60 16.50 17.00 18.40 16.50 8.50 17.50 17.40 16.01 5.00

Figure 4.1 - C. 2 Capital Adequacy Ratio (PVT Banks)

Capital adequacy rati o (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
30.80

22.70
22.30
21.80

19.16
19.12

19.12

18.90
18.90
18.80
18.54

18.50

18.40
18.42

18.40
18.40

18.30
17.90
17.90
17.60
17.53

17.50
17.40
17.20

17.20
17.10
17.00

17.00

17.00

17.00
16.89
16.80
16.80

16.70
16.57

16.50

16.50
16.11
16.10
16.07

15.84

15.60
15.50
15.29
15.09
14.95

14.80
14.60

14.40

8.50

Ax i s HD FC ICICI K o t ak Yes

25
Debt to Equity Ratio
Table 4.1 - C. 3 Debt to Equity Ratio (PSU Banks)

Debt to Equity Ratio

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.86 1.05 0.91 0.93 0.83 1.56 1.62 1.41 0.87 1.21 1.13 3
CANARA 0.89 1.13 0.97 1.03 1.40 1.33 1.38 1.30 0.99 0.80 1.12 2
PNB 1.27 1.39 1.21 1.68 1.06 1.63 0.95 0.87 0.51 0.52 1.11 1
SBI 1.71 1.55 1.60 2.24 2.03 1.86 2.05 1.51 1.81 1.66 1.80 5
Union 1.51 1.72 1.93 1.52 1.97 2.01 1.77 1.71 0.80 0.73 1.57 4

Figure 4.1 - C. 3 Debt to Equity Ratio (PSU Banks)

debt to equity rati o (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2.24

2.05
2.03

2.01
1.97
1.93
1.86

1.81

1.77
1.72
1.71

1.71
1.68

1.66
1.63
1.62

1.60
1.56

1.55

1.52
1.51
1.51
1.41

1.40

1.39
1.38
1.33
1.30

1.27
1.21
1.21

1.13

1.06
1.05

1.03

0.99
0.97

0.95
0.93
0.91

0.89

0.87
0.87
0.86

0.83

0.80

0.80
0.73
0.52
0.51

BOB C AN AR A PNB SBI Union

26
 Table 4.1 - C. 4 Debt to Equity Ratio (PVT Banks)

Debt to Equity Ratio

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 1.33 1.32 1.79 2.04 1.88 2.33 2.29 1.74 1.41 1.61 1.77 4
HDFC 0.91 0.91 0.73 1.17 0.83 1.16 0.78 0.85 0.67 0.77 0.88 2
ICICI 2.18 2.11 2.14 2.01 1.52 1.79 1.57 1.44 0.63 0.64 1.60 3
Kotak Bank 2.16 1.05 0.86 0.88 0.76 0.67 0.75 0.78 0.37 0.36 0.86 1
Yes 3.60 2.99 2.24 2.30 1.75 2.91 4.03 5.24 1.93 2.14 2.91 5

Figure 4.1 - C. 4 Debt to Equity Ratio (PVT Banks)

debt to equity rati o (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

5.24
4.03
3.60
2.99

2.91
2.33

2.30
2.29

2.24
2.18

2.16
2.14

2.14
2.11
2.04

2.01

1.93
1.88
1.79

1.79

1.75
1.74
1.61

1.57
1.52

1.44
1.41
1.33
1.32

1.17
1.16

1.05
0.91
0.91

0.88
0.86
0.85
0.83
0.78

0.78
0.77

0.76
0.75
0.73

0.67
0.67

0.64
0.63

0.37
0.36

Ax i s HD FC ICICI Kotak Yes

27
Total Advances to Total asset Ratio

Table 4.1 - C. 5 Total Advances to Total asset Ratio (PSU Banks)

Total Advances to Total asset ratio = Total Advances/ Total Assets

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.60 0.60 0.60 0.57 0.55 0.59 0.60 0.60 0.61 0.61 0.59 5
CANARA 5.87 6.12 6.02 5.87 5.86 6.19 6.16 5.97 5.54 5.73 5.93 1
PNB 6.45 6.35 6.31 6.18 5.82 5.66 5.91 5.68 5.35 5.54 5.92 2
SBI 0.67 0.67 0.63 0.62 0.58 0.56 0.59 0.59 0.54 0.55 0.60 4
Union 0.67 0.65 0.67 0.66 0.63 0.59 0.60 0.57 0.55 0.56 0.62 3

Figure 4.1 - C. 5 Total Advances to Total asset Ratio (PSU Banks)

Total Advances to Total asset rati o (PSU

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
6.45
6.35
6.31
6.19

6.18
6.16
6.12
6.02

5.97

5.91
5.87

5.87
5.86

5.82
5.73

5.68
5.66
5.54

5.54
5.35

0.67
0.67

0.67
0.67

0.66
0.65
0.63

0.63
0.62
0.61
0.61
0.60
0.60
0.60

0.60

0.60
0.59
0.60

0.59

0.59
0.59
0.58

0.57
0.57

0.56

0.55

0.55
0.56
0.55

0.54

BOB C ANAR A P NB SBI Union

28
 Table 4.1 - C. 6 Total Advances to Total asset Ratio (PVT Banks)

Total Advances to Total asset ratio = Total Advances/ Total Assets

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.58 0.60 0.61 0.63 0.62 0.64 0.62 0.62 0.62 0.60 0.61 4
HDFC 5.99 6.16 6.19 6.27 6.42 6.19 6.58 6.49 6.48 6.62 6.34 1
ICICI 5.41 5.70 6.00 6.04 6.01 5.83 6.08 5.88 5.96 6.09 5.90 3
Kotak Bank 5.79 6.05 6.24 6.17 6.34 6.41 6.59 6.10 5.83 6.32 6.18 2
Yes 0.47 0.51 0.55 0.59 0.62 0.65 0.63 0.66 0.61 0.57 0.59 5

Figure 4.1 - C. 6 Total Advances to Total asset Ratio (PVT Banks)

Total Advances to Total asset rati o (Pvt

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
6.62

6.59
6.58
6.49
6.48
6.42

6.41
6.34

6.32
6.27

6.24
6.19

6.19

6.17
6.16

6.10
6.09
6.08

6.05
6.04
6.01
6.00
5.99

5.96
5.88

5.83
5.83

5.79
5.70
5.41

0.66
0.65
0.64
0.63

0.63
0.62
0.62
0.62
0.62

0.62
0.61

0.61
0.60
0.60

0.59
0.58

0.57
0.55
0.51
0.47

Ax i s HD FC ICICI K ot ak Yes

29
Government Securities to Total Investment Ratio

Table 4.1 - C. 7 Government Securities to Total Investment Ratio (PSU Banks)

Government Securities to Total Investment Ratio (G-Sec / Tot INV Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.85 0.83 0.85 0.86 0.88 0.89 0.89 0.90 0.89 0.88 0.87 4
CANARA 8.42 8.48 8.84 8.92 9.05 8.88 8.95 9.15 9.21 9.34 8.92 1
PNB 8.28 7.81 8.27 8.01 7.91 7.69 8.02 8.54 8.78 8.73 8.20 2
SBI 0.01 0.01 0.01 0.02 0.01 0.01 0.01 0.02 0.01 0.01 0.01 5
Union 7.65 7.44 8.64 8.08 7.89 7.98 7.61 7.04 7.29 0.76 7.04 3

Figure 4.1 - C. 7 Government Securities to Total Investment Ratio (PSU Banks)

Government Securiti es to Total Investment

Rati o (PSU Bank)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
9.34
9.21
9.15
9.05
8.95
8.92
8.88
8.84

8.78
8.73

8.64
8.54
8.48
8.42

8.28
8.27

8.08
8.01

8.02

7.98
7.91

7.89
7.81

7.69

7.65

7.61
7.44

7.29
7.04
0.90
0.89
0.89
0.89
0.88
0.88
0.86
0.85
0.85
0.83

0.76
0.02

0.01
0.01
0.01
0.01
0.01

0.01
0.01
0.02
0.01

BOB C ANAR A PNB SBI Union

30
 Table 4.1 - C. 8 Government Securities to Total Investment Ratio (PVT Banks)

Government Securities to Total Investment Ratio (G-Sec / Tot INV Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.64 0.61 0.70 0.73 0.72 0.68 0.69 0.80 0.81 0.82 0.72 4
HDFC 7.61 7.82 7.94 8.05 7.57 7.79 8.29 8.27 7.93 8.05 7.93 1
ICICI 5.43 5.42 6.79 7.03 6.97 6.97 7.22 7.66 8.13 8.61 7.02 3
Kotak Bank 7.47 6.85 7.98 7.95 8.03 8.02 8.16 8.25 8.12 7.47 7.83 2
Yes 0.55 0.55 0.69 0.72 0.71 0.72 0.75 0.75 0.78 0.85 0.71 5

Figure 4.1 - C. 8 Government Securities to Total Investment Ratio (PVT Banks)

Government Securiti es to Total In-

vestment Rati o (Pvt Banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
8.61
8.29
8.27

8.25
8.16
8.13

8.12
8.05
8.05

8.03
8.02
7.98
7.95
7.94

7.93
7.82

7.79

7.66
7.61

7.57

7.47

7.47
7.22
7.03
6.97
6.97

6.85
6.79
5.43
5.42

0.85
0.81
0.82
0.80

0.78
0.75
0.75
0.73

0.72
0.72
0.72

0.71
0.70

0.69
0.69
0.68
0.64
0.61

0.55
0.55

Ax i s HD FC ICICI K ot ak Yes

31
 ASSET QUALITY

Gross NPA to Net Advances Ratio

Table 4.1 - A. 1 Gross NPA to Net Advances Ratio (PSU Banks)

Gross NPA to Net Advances Ratio (GNPA’s/ ADV Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.18 0.17 0.46 -1.33 5.96 0.97 0.90 1.26 2.32 0.63 1.15 3
CANARA 0.53 0.12 0.40 6.64 1.40 0.88 0.67 2.44 1.65 0.74 1.55 4
PNB 0.73 0.42 0.65 1.11 2.67 2.29 1.60 2.61 -19.66 1.36 -0.62 1
SBI 0.27 0.35 0.52 0.51 0.80 1.64 0.57 0.82 0.83 0.38 0.67 2
Union 0.20 0.41 0.45 1.54 1.34 3.17 2.53 1.64 17.70 0.97 2.99 5

Figure 4.1 - A. 1 Gross NPA to Net Advances Ratio (PSU Banks)

Gross NPA to Net Advances Rati o (PSU banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

17.70
6.64
5.96

3.17
2.67

2.61

2.53
2.44
2.32

2.29

1.64

1.64
1.65

1.60

1.54
1.40

1.36

1.34
1.26

1.11
0.97

0.97
0.90

0.88

0.83
0.82
0.80
0.74

0.73
0.67
0.63

0.65

0.57
0.52
0.53

0.51
0.46

0.45
0.40

0.42

0.38

0.41
0.35
0.27

0.20
0.18
0.17

0.12

BOB C ANARA PNB SBI Union

-1.33

-19.66

32
 Table 4.1 - A. 2 Gross NPA to Net Advances Ratio (PVT Banks)

Gross NPA to Net Advances Ratio (GNPA’s/ ADV Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.01 0.01 0.01 0.01 0.05 0.04 0.05 0.03 0.04 0.02 0.03 1
HDFC 0.05 0.05 0.05 0.04 0.06 0.08 0.07 0.07 0.10 0.07 0.06 2
ICICI 2.53 2.06 2.80 4.61 8.88 8.21 5.04 5.96 4.10 2.53 4.67 4
Kotak Bank 0.08 0.23 0.09 0.22 0.20 0.11 0.12 0.33 1.29 0.13 0.28 3
Yes 10.29 19.95 15.63 32.34 0.06 0.04 0.19 -0.78 7.52 1.72 8.70 5

igure 4.1 - A. 2 Gross NPA to Net Advances Ratio (PVT Banks)

Gross NPA to Net Advances Rati o (Pvt

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

32.34
19.95
15.63
10.29
8.88
8.21

7.52
5.96
5.04
4.61

4.10
2.80
2.53

2.53
2.06

1.72
1.29
0.33
0.23
0.22
0.20

0.19
0.13
0.11
0.12
0.08

0.08
0.09
0.05
0.06
0.07
0.07
0.10
0.07

0.06
0.05
0.04
0.03
0.04

0.05
0.05

0.04
0.01
0.01
0.01

0.05

0.04
0.01

0.02

Ax i s HDFC ICICI K ot ak Yes

-0.78

33
Net Non-Performing Assets (NPA) to Net Advances Ratio

Table 4.1 - A. 3 Net Non-Performing Assets (NPA) to Net Advances Ratio (PSU Banks)

Net Non-Performing Assets (NPA) to Net Advances Ratio (NNPA’s/ ADV Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.09 0.08 0.23 -0.64 2.52 0.40 0.29 0.39 0.76 0.16 0.43 3
CANARA 0.44 0.10 0.27 4.37 0.88 0.53 0.39 1.20 0.67 0.25 0.91 4
PNB 0.39 0.22 0.39 0.70 1.58 1.29 0.61 0.97 -7.26 0.51 -0.06 1
SBI 0.12 0.17 0.26 0.29 0.42 0.81 0.22 0.28 0.24 0.09 0.29 2
Union 0.10 0.23 0.24 0.89 0.75 1.56 1.06 0.58 5.38 0.30 1.11 5

Figure 4.1 - A. 3 Net Non-Performing Assets (NPA) to Net Advances Ratio (PSU Banks)

Net Non-Performing Assets (NPA) to Net

Advances Rati o (PSU banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

5.38
4.37
2.52

1.58

1.56
1.29
1.20

1.06
0.97

0.89
0.88

0.81
0.76

0.75
0.70
0.67

0.61

0.58
0.53

0.51
0.44

0.42
0.40

0.39
0.39

0.39

0.39

0.29

0.30
0.29

0.27

0.28
0.26
0.25

0.24

0.24
0.23

0.22

0.22

0.23
0.17
0.16

0.12

0.10
0.09

0.10

0.09
0.08

BOB C ANAR A P NB SBI Union

-0.64

-7.26

34
 Table 4.1 - A. 4 Net Non-Performing Assets (NPA) to Net Advances Ratio (PVT Banks)

Net Non-Performing Assets (NPA) to Net Advances Ratio (NNPA’s/ ADV Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.00 0.00 0.00 0.00 0.02 0.02 0.02 0.01 0.01 0.01 0.01 1
HDFC 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.03 0.02 0.02 2
ICICI 0.59 0.65 1.16 2.28 5.31 4.29 1.48 1.45 0.92 0.53 1.86 4
Kotak Bank 0.03 0.12 0.05 0.10 0.10 0.05 0.04 0.10 0.47 0.04 0.11 3
Yes 0.76 2.97 4.38 12.28 0.03 0.02 0.11 -0.20 2.58 0.50 2.34 5

Figure 4.1 - A. 4 Net Non-Performing Assets (NPA) to Net Advances Ratio (PVT Banks)

Net Non-Performing Assets (NPA) to Net

Advances Rati o (Pvt banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

12.28
5.31

4.38
4.29

2.97

2.58
2.28

1.48
1.45
1.16

0.92

0.76
0.65
0.59

0.53

0.50
0.47
0.12
0.10

0.11
0.10
0.10
0.05

0.05
0.04
0.03

0.04

0.03
0.02

0.02
0.02
0.02
0.02
0.03
0.02

0.02
0.02

0.01
0.01

0.01
0.01
0.00
0.00
0.00

0.02

0.01

0.01
0.00

0.01

Ax i s HD FC ICICI K otak Yes

-0.20

35
Total Investment to Total Assets Ratio

Table 4.1 - A. 5 Total Investment to Total Assets Ratio (PSU Banks)

Total Investment to Total Assets Ratio (Tot INV / Tot ASS Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.22 0.18 0.16 0.18 0.19 0.23 0.23 0.24 0.23 0.25 0.21 2
CANARA 0.29 0.26 0.26 0.26 0.26 0.23 0.22 0.24 0.23 0.23 0.25 3
PNB 2.53 2.11 1.94 1.80 1.80 2.13 2.35 3.31 2.07 2.40 2.24 5
SBI 0.22 0.22 0.24 0.24 0.28 0.31 0.26 0.26 0.30 0.30 0.26 4
Union 0.03 0.03 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.29 0.05 1

Figure 4.1 - A. 5 Total Investment to Total Assets Ratio (PSU Banks)

Total Investment to Total Assets Rati o (psu

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
3.31
2.53

2.40
2.35
2.13
2.11

2.07
1.94
1.80
1.80

0.31

0.30
0.30
0.29

0.29
0.28
0.26
0.26
0.26
0.26

0.26
0.26
0.25

0.24
0.24
0.24

0.24
0.23
0.23

0.23
0.23

0.23

0.23

0.22
0.22

0.22
0.22
0.19
0.18
0.18
0.16

0.03
0.03
0.03
0.03

0.02
0.03
0.02
0.02

0.03

BOB C AN AR A P NB SBI Union

36
 Table 4.1 - A. 6 Total Investment to Total Assets Ratio (PVT Banks)

Total Investment to Total Assets Ratio (Tot INV / Tot ASS Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.33 0.30 0.25 0.24 0.21 0.22 0.22 0.17 0.23 0.23 0.24 2
HDFC 0.28 0.25 0.26 0.26 0.25 0.23 0.24 0.26 0.25 0.22 0.25 3
ICICI 0.32 0.30 0.24 0.22 0.21 0.23 0.22 0.23 0.23 0.22 0.24 1
Kotak Bank 0.34 0.29 0.27 0.27 0.21 0.24 0.23 0.21 0.27 0.23 0.26 4
Yes 0.43 0.38 0.32 0.30 0.23 0.22 0.24 0.17 0.16 0.16 0.26 5

Figure 4.1 - A. 6 Total Investment to Total Assets Ratio (PVT Banks)

Total Investment to Total Assets Rati o

(pvt banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.43
0.38
0.34
0.33

0.32

0.32
0.30
0.30

0.30
0.29
0.28

0.27
0.27
0.27
0.26
0.26

0.26
0.25

0.25
0.25
0.25

0.24
0.24

0.24
0.24

0.24
0.23

0.23

0.23
0.23
0.23

0.23

0.23
0.23

0.23
0.22

0.22
0.22

0.22

0.22
0.22

0.22
0.21

0.21
0.21

0.21
0.17

0.17
0.16
0.16
Ax i s HD FC ICICI K ot ak Yes

37
 MANAGEMENT

Total Expenditure to Total Income Ratio

Table 4.1 - M. 1 Total Expenditure to Total Income Ratio (PSU Banks)

Total Expenditure to Total Income Ratio (Tot EXP / Tot INC Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.88 0.87 0.89 1.14 0.95 1.06 0.99 1.02 0.93 0.88 0.96 2
CANARA 0.90 0.93 0.93 1.07 0.97 1.14 1.04 1.03 0.96 0.90 0.99 3
PNB 0.86 0.90 0.92 1.11 0.96 1.34 1.26 0.99 0.96 0.95 1.03 5
SBI 0.85 0.90 0.89 0.93 0.93 1.06 0.99 0.92 0.91 0.86 0.92 1
Union 0.89 0.94 0.92 0.95 0.99 1.18 1.10 1.09 0.97 0.89 0.99 4

Figure 4.1 - M. 1 Profit Per Employee (PPE) (PVT Banks)

Total Expenditure to Total Income Rati o (PSU

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1.34
1.26

1.18
1.14

1.14

1.11

1.10
1.09
1.07

1.06
1.06

1.04
1.03
1.02

0.99

0.99
0.99
0.99

0.97
0.97

0.96

0.96
0.96

0.95

0.95
0.95

0.94
0.93

0.93

0.93
0.93

0.93
0.92

0.92
0.92
0.91
0.90
0.90

0.90

0.90

0.89
0.89

0.89
0.89

0.88
0.88
0.87

0.86
0.86

0.85

BOB CANARA PNB SBI Union

38
 Table 4.1 - M. 2 Total Expenditure to Total Income Ratio (PVT Banks)

Total Expenditure to Total Income Ratio (Tot EXP / Tot INC Ratio)
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.78 0.75 0.75 0.75 0.90 1.00 0.90 0.94 0.88 0.79 0.84 4
HDFC 0.77 0.74 0.73 0.74 0.73 0.72 0.72 0.73 0.71 0.69 0.73 1
ICICI 0.76 0.74 0.74 0.82 0.85 0.90 0.95 0.85 0.79 0.71 0.81 3
Kotak 0.79 0.78 0.76 0.84 0.76 0.74 0.74 0.76 0.71 0.66 0.75 2
Yes 0.80 0.80 0.79 0.77 0.75 0.76 0.93 1.55 1.21 0.94 0.93 5

Figure 4.1 - M. 2 Total Expenditure to Total Income Ratio (PVT Banks)

Total Expenditure to Total Income Rati o

(Pvt banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.55
1.21
1.00

0.95
0.94

0.94
0.93
0.90
0.90

0.90
0.88

0.85

0.85

0.84
0.82

0.80
0.80
0.79
0.79

0.79

0.79
0.78

0.78

0.77
0.77

0.76

0.76

0.76

0.76
0.76

0.75
0.75
0.75
0.75

0.74
0.74

0.74
0.74

0.74
0.74

0.73
0.73
0.73
0.72
0.72

0.71

0.71

0.71
0.69

0.66

Ax i s HD FC ICICI K otak Yes

39
Total Advance to Total Deposit Ratio

Table 4.1 - M. 3 Total Advance to Total Deposit Ratio (PSU Banks)

Total Advance to Total Deposit Ratio (Tot ADV/Tot DEP Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.69 0.70 0.69 0.67 0.64 0.72 0.73 0.73 0.73 0.74 0.70 3
CANARA 0.68 0.72 0.70 0.68 0.69 0.73 0.71 0.69 0.63 0.65 0.69 5
PNB 0.79 0.77 0.76 0.75 0.67 0.68 0.68 0.67 0.61 0.64 0.70 4
SBI 0.87 0.87 0.82 0.85 0.77 0.71 0.75 0.72 0.67 0.67 0.77 1
Union 0.79 0.77 0.81 0.78 0.76 0.71 0.71 0.70 0.64 0.64 0.73 2

Figure 4.1 - M. 3 Total Advance to Total Deposit Ratio (PSU Banks)

Total Advance to Total Deposit Rati o (psu

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.87
0.87
0.85
0.82

0.81
0.79
0.79

0.78
0.77

0.77
0.77

0.76
0.76

0.75
0.75
0.74
0.73
0.73
0.73

0.73
0.72

0.72
0.72

0.71
0.71

0.71
0.71
0.70
0.70

0.70
0.69
0.69

0.69
0.69
0.68

0.68
0.68

0.67
0.68

0.67
0.67
0.67

0.67
0.65

0.64
0.64
0.64

0.64
0.63

0.61

BOB C AN AR A PNB SBI Union

40
 Table 4.1 - M. 4 Total Advance to Total Deposit Ratio (PVT Banks)

Total Advance to Total Deposit Ratio (Tot ADV/Tot DEP Ratio)

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.78 0.82 0.87 0.95 0.90 0.97 0.90 0.89 0.88 0.86 0.88 3
HDFC 0.81 0.82 0.81 0.85 0.86 0.83 0.89 0.87 0.85 0.88 0.85 5
ICICI 0.99 1.02 1.07 1.03 0.95 0.91 0.90 0.84 0.79 0.81 0.93 2
Kotak 0.95 0.90 0.88 0.86 0.86 0.88 0.91 0.84 0.80 0.87 0.87 4
Yes 0.70 0.75 0.83 0.88 0.93 1.01 1.06 1.63 1.02 0.92 0.97 1

Figure 4.1 - M. 4 Total Advance to Total Deposit Ratio (PVT Banks)

Total Advance to Total Deposit Rati o (Pvt

banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.63
1.07

1.06
1.03

1.02
1.02

1.01
0.99
0.97

0.95
0.95
0.95

0.93

0.92
0.91

0.91
0.90
0.90

0.90

0.90
0.89

0.89

0.88
0.88

0.88

0.88
0.88
0.87

0.87
0.87

0.86
0.86
0.86

0.86
0.85

0.85

0.84
0.83

0.84

0.83
0.82
0.82

0.81
0.81

0.81

0.80
0.79
0.78

0.75
0.70

Ax i s H D FC ICICI K ot ak Yes

41
Asset Turnover Ratio (ATR)

Table 4.1 - M. 5 Asset Turnover Ratio (ATR) (PSU Banks)

Asset Turnover Ratio (ATR) = Total Income/ Total Assets

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 5
CANARA 0.09 0.09 0.09 0.09 0.08 0.08 0.08 0.08 0.07 0.07 0.08 1
PNB 0.10 0.09 0.09 0.08 0.08 0.07 0.08 0.08 0.07 0.07 0.08 2
SBI 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 4
Union 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 3

Figure 4.1 - M. 5 Asset Turnover Ratio (ATR) (PSU Banks)

Asset Turnover Rati o (ATR) (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.10
0.09
0.09
0.09
0.09

0.09
0.09
0.08

0.08
0.08
0.08

0.08
0.08

0.08
0.08
0.07

0.07
0.07
0.07

0.07

0.01
0.01
0.01

0.01
0.01
0.01
0.01

0.01
0.01

0.01
0.01
0.01

0.01
0.01
0.01
0.01

0.01
0.01
0.01

0.01
0.01

0.01
0.01
0.01

0.01

0.01
0.01
0.01

0.01
0.01

BOB C AN AR A PNB SBI Union

42
 Table 4.1 - M. 6 Asset Turnover Ratio (ATR) (PVT Banks)

Asset Turnover Ratio (ATR) = Total Income/ Total Assets

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.10 0.10 0.09 0.09 0.09 0.08 0.09 0.09 0.08 0.07 0.09 4
HDFC 0.10 0.10 0.10 0.10 0.09 0.09 0.09 0.09 0.08 0.08 0.09 3
ICICI 0.09 0.09 0.09 0.09 0.10 0.08 0.08 0.08 0.08 0.07 0.09 5
Kotak 0.11 0.12 0.11 0.10 0.10 0.09 0.09 0.09 0.08 0.08 0.10 2
Yes 0.10 0.11 0.10 0.10 0.10 0.08 0.09 0.15 0.08 0.07 0.10 1

Figure 4.1 - M. 6 Asset Turnover Ratio (ATR) (PVT Banks)

Asset Turnover Rati o (ATR) (PVt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.15
0.12
0.11
0.11

0.11
0.10

0.10
0.10
0.10
0.10

0.10
0.10

0.10
0.10

0.10
0.10

0.10
0.10
0.09

0.09
0.09

0.09
0.09
0.09
0.09

0.09

0.09
0.09

0.09

0.09
0.09

0.09
0.09
0.09
0.09

0.08
0.08

0.08

0.08
0.08
0.08

0.08
0.08
0.08

0.08
0.08

0.08

0.07
0.07

0.07
Ax i s HDFC ICICI K o t ak B an k Yes

43
Diversification Ratio (DIVRSF ratio)

Table 4.1 - M. 7 Diversification Ratio (DIVRSF ratio) (PSU Banks)

Diversification Ratio (DIVRSF ratio) = (Total Income - Interest Income) / Total

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 0.09 0.10 0.09 0.10 0.14 0.13 0.11 0.12 0.16 0.14 0.12 3
CANARA 0.08 0.09 0.09 0.10 0.15 0.14 0.12 0.14 0.18 0.19 0.13 1
PNB 0.09 0.10 0.11 0.11 0.16 0.16 0.13 0.15 0.13 0.14 0.13 2
SBI 0.12 0.12 0.13 0.15 0.17 0.17 0.13 -0.18 0.14 0.13 0.11 5
Union 0.09 0.09 0.10 0.10 0.13 0.13 0.12 0.12 0.15 0.16 0.12 4

Figure 4.1 - M. 7 Diversification Ratio (DIVRSF ratio) (PSU Banks)

Diversifi cati on Rati o (DIVRSiFicati on rati o)

(PSU banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.19
0.18

0.17
0.17
0.16
0.16

0.16
0.16

0.15

0.15

0.15
0.15
0.14

0.14
0.14

0.14
0.14

0.14
0.13

0.13
0.13
0.13
0.13
0.13

0.13
0.13

0.12
0.12

0.12
0.12

0.12

0.12
0.11
0.11
0.11
0.10
0.10

0.10
0.10

0.10
0.10
0.09
0.09
0.09

0.09
0.09
0.09

0.09
0.08

BOB CANARA PNB SBI Union

-0.18

44
 Table 4.1 - M. 8 Diversification Ratio (DIVRSF ratio) (PVT Banks)

Diversification Ratio (DIVRSF ratio) = (Total Income - Interest Income) / Total

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 0.19 0.19 0.19 0.19 0.21 0.19 0.19 0.20 0.16 0.18 0.19 2
HDFC 0.16 0.16 0.16 0.15 0.15 0.16 0.15 0.17 0.17 0.19 0.16 4
ICICI 0.17 0.19 0.20 0.23 0.26 0.24 0.19 0.18 0.19 0.18 0.20 1
Kotak 0.13 0.14 0.17 0.14 0.16 0.17 0.16 0.17 0.16 0.19 0.16 5
Yes 0.13 0.15 0.15 0.17 0.20 0.20 0.13 0.31 0.13 0.15 0.17 3

Figure 4.1 - M. 8 Diversification Ratio (DIVRSF ratio) (PVT Banks)

Diversifi cati on Rati o (DIVRSiFicati on rati o)

(Pvt banks)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.31
0.26
0.24
0.23
0.21

0.20
0.20
0.20

0.20
0.19
0.19

0.19

0.19
0.19

0.19
0.19

0.19
0.19

0.19
0.19

0.18

0.18
0.18

0.17
0.17

0.17

0.17
0.17

0.17
0.17
0.16
0.16

0.16
0.16

0.16

0.16

0.16
0.16
0.15

0.15
0.15

0.15
0.15

0.15
0.14
0.14

0.13
0.13

0.13
0.13

Ax i s H D FC ICICI K o t ak Yes

45
Business Per Employee (BPE)

Table 4.1 - M. 9 Business Per Employee (BPE) (PSU Banks)

Business Per Employee (BPE) = Total Income / Number of Employees
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 900.70 943.51 959.24 943.08 933.96 903.77 1005.58 1023.94 1006.55 1019.53 963.99 3
CANARA 872.06 891.10 894.71 905.37 878.40 818.88 914.92 951.64 954.56 988.36 907.00 4
PNB 728.52 729.31 764.48 754.57 760.66 759.40 828.80 917.03 910.99 845.42 799.92 5
SBI 611.13 695.23 820.55 923.48 1006.74 1004.01 1087.04 1212.86 1256.44 1293.84 991.13 2
Union 870.45 951.63 1002.62 1010.08 1020.27 1004.01 1034.31 1138.64 1029.54 1070.05 1013.16 1

Figure 4.1 - M. 9 Business Per Employee (BPE) (PSU Banks)

Business Per Employee (BPE) (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1293.84
1256.44
1212.86

1138.64
1087.04

1070.05
1034.31
1029.54
1023.94

1020.27
1019.53

1010.08
1006.55

1006.74
1005.58

1004.01

1004.01
1002.62
988.36
959.24

954.56
951.64

951.63
943.51
943.08
933.96

923.48
917.03
914.92

910.99
905.37
903.77
900.70

894.71
891.10

878.40
872.06

870.45
845.42
828.80

820.55
818.88

764.48
760.66
759.40
754.57
729.31
728.52

695.23
611.13

BOB C AN AR A P NB SBI Union

46
 Table 4.1 - M. 10 Business Per Employee (BPE) (PVT Banks)
Business Per Employee (BPE) = Total Income / Number of Employees
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 8900.47 9007.19 10382.11 10044.78 10041.69 9521.38 10997.11 10563.75 9693.57 9660.51 9881.26 2
HDFC 0.10 0.12 0.13 0.14 0.17 0.20 0.23 0.22 0.26 0.26 0.18 5
ICICI 568.21 579.66 677.09 700.72 682.23 644.23 664.00 695.31 753.53 803.51 676.85 3
Kotak 391.62 383.65 293.71 408.53 481.27 476.01 475.79 454.95 436.26 371.04 417.28 4
Yes 14324.28 13301.81 12598.02 10830.39 10226.78 13977.00 16187.97 16507.68 10351.83 9153.86 12745.96 1

Figure 4.1 - M. 10 Business Per Employee (BPE) (PVT Banks)

Business Per Employee (BPE) (pvt banks)

Series1 Series2 Series3 Series4 Series5

16507.68
16187.97
Series6 Series7 Series8 Series9 Series10

14324.28

13977.00
13301.81
12598.02
10997.11

10830.39
10563.75
10382.11

10351.83
10226.78
10044.78
10041.69

9693.57
9660.51
9521.38

9153.86
9007.19
8900.47
2013.00
2015.00
2016.00
2017.00
2018.00
2019.00
2021.00
2022.00
2014.00

2020.00

803.51
753.53
700.72

695.31
682.23
677.09

664.00
644.23
579.66
568.21

481.27
476.01
475.79
454.95
436.26
408.53
391.62
383.65

371.04
293.71
0.10
0.12
0.13
0.17
0.20
0.23
0.26
0.26
0.14

0.22

Ban k Nam e Ax i s HDFC ICICI K o t ak Yes

47
Profit Per Employee (PPE)

Table 4.1 - M. 11 Profit Per Employee (PPE) (PSU Banks)

Profit Per Employee (PPE) = Profits After tax/ Number of Employees
Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
BOB 1039.42 987.17 688.25 -1037.18 263.86 -436.89 77.76 64.80 100.01 911.24 265.84 2
CANARA 672.73 499.69 500.63 -520.82 201.36 -717.40 59.47 -374.92 289.93 653.30 126.40 3
PNB 750.12 510.00 448.32 -561.35 179.22 -1639.96 -1408.77 48.88 198.58 335.16 -113.98 5
SBI 645.00 485.00 602.00 470.00 511.00 -243.00 33.00 578.98 828.35 1292.72 520.31 1
Union 678.68 501.75 501.67 381.02 150.56 -1396.06 -791.01 -776.51 371.60 695.75 31.74 4

Figure 4.1 - M. 11 Profit Per Employee (PPE) (PSU Banks)

Profi t Per Employee (PPE) (PSU banks)

1292.72
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1039.42
987.17

911.24

828.35
750.12

695.75
688.25

678.68
672.73

653.30

645.00
602.00

578.98
510.00

511.00

501.75
501.67
499.69
500.63

485.00
470.00
448.32

381.02

371.60
335.16
289.93
263.86

201.36

198.58
179.22

150.56
100.01
77.76
64.80

59.47

48.88

33.00

BOB C AN AR A PNB SBI Union

-243.00
-374.92
-436.89

-520.82

-561.35
-717.40

-776.51
-791.01
-1037.18

-1396.06
-1408.77
-1639.96

48
 Table 4.1 - M. 12 Profit Per Employee (PPE) (PVT Banks)

Profit Per Employee (PPE) = Profits After tax/ Number of Employees

Bank
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Name
Axis 13665.69 14719.86 17423.21 16403.04 6570.14 462.55 7550.22 2198.94 8446.80 15234.48 10267.49 1
HDFC 973.91 1243.80 1339.16 1404.40 1725.42 1981.43 2266.47 2244.77 2591.04 2610.65 1838.11 3
ICICI 976.97 1041.41 1235.04 1001.35 907.75 603.19 286.63 604.34 1243.96 1787.89 968.85 4
Kotak 579.03 566.99 466.50 449.42 775.34 816.86 810.89 837.63 954.09 952.52 720.93 5
Yes 19506.31 18388.04 18550.98 16929.65 16547.06 23163.53 8139.09 -71466.64 -15546.59 4379.41 3859.08 2

Figure 4.1 - M. 12 Profit Per Employee (PPE) (PVT Banks)

Profi t Per Employee (PPE) (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

23163.53
19506.31
18550.98
18388.04
17423.21

16929.65
16547.06
16403.04

15234.48
14719.86
13665.69

8446.80

8139.09
7550.22
6570.14

4379.41
2610.65
2591.04
2266.47
2244.77
2198.94

1981.43

1787.89
1725.42
1339.16
1404.40
1243.80

1243.96
1235.04
1041.41
1001.35
973.91

976.97

954.09
952.52
907.75

816.86
810.89
837.63
775.34
603.19
604.34

579.03
566.99
462.55

466.50
449.42
286.63

Ax i s HD FC ICICI K otak Yes

-15546.59
-71466.64

49
 EARNING QUALITY

Net Profit Margin (NPR)

Table 4.1 - E. 1 Net Profit Margin (NPR) (PSU Banks)

Net Profit Margin (NPR) = Net profit After Taxes / Total Income

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank

BOB 0.12 0.10 0.07 -0.11 0.03 -0.05 0.01 0.01 0.01 0.09 0.03 2
CANARA 0.08 0.06 0.06 -0.06 0.02 -0.09 0.01 -0.04 0.03 0.07 0.01 3
PNB 0.10 0.07 0.06 -0.07 0.02 -0.22 -0.17 0.01 0.02 0.04 -0.01 5
SBI 0.10 0.07 0.07 0.05 0.05 -0.02 0.00 0.05 0.07 0.10 0.05 1
Union 0.08 0.05 0.05 0.04 0.01 -0.14 -0.08 -0.07 0.04 0.07 0.01 4

Figure 4.1 - E. 1 Net Profit Margin (NPR) (PSU Banks)

Net Profi t Margin (NPR) (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.12
0.10

0.10
0.10

0.10
0.09

0.08
0.08

0.07
0.07

0.07
0.07
0.07

0.07

0.07
0.06
0.06
0.06

0.05
0.05

0.05
0.05

0.05
0.04

0.04

0.04
0.03
0.03

0.02
0.02

0.02

0.01
0.01
0.01

0.01
0.01

0.01

0.00

BOB C AN AR A PNB SBI Union

-0.02
-0.04
-0.05

-0.06

-0.07
-0.07

-0.08
-0.09
-0.11

-0.14
-0.17
-0.22

50
 Table 4.1 - E. 2 Net Profit Margin (NPR) (PVT Banks)

Net Profit Margin (NPR) = Net profit After Taxes / Total Income

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.15 0.16 0.17 0.16 0.07 0.00 0.07 0.02 0.09 0.16 0.11 4
HDFC 0.16 0.17 0.18 0.17 0.18 0.18 0.18 0.19 0.21 0.24 0.19 1
ICICI 0.17 0.18 0.18 0.14 0.13 0.09 0.04 0.09 0.17 0.22 0.14 3
Kotak 0.15 0.15 0.16 0.11 0.16 0.17 0.17 0.18 0.22 0.26 0.17 2
Yes 0.14 0.14 0.15 0.16 0.16 0.17 0.05 -0.43 -0.15 0.05 0.04 5

Figure 4.1 - E. 2 Net Profit Margin (NPR) (PVT Banks)

Net Profi t Margin ( NPR) (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.26
0.24

0.22

0.22
0.21
0.19

0.18
0.18

0.18
0.18

0.18
0.18
0.18
0.17
0.17

0.17

0.17
0.17
0.17

0.17
0.17
0.16
0.16

0.16
0.16
0.16

0.16
0.16

0.16
0.15

0.15
0.15

0.15
0.14

0.14
0.14
0.13

0.11
0.09
0.09

0.09
0.07
0.07

0.05

0.05
0.04
0.02
0.00

Ax i s HDFC ICICI K ot ak Yes

-0.15
-0.43

51
Return on Equity (ROE)

Table 4.1 - E. 3 Return on Equity (ROE) (PSU Banks)

Return on Equity (ROE) = Net Income / Average Shareholders Equity

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
BOB 15.68 13.80 9.21 -14.40 3.80 -6.32 1.06 1.02 1.16 8.93 3.39 2
CANARA 13.21 10.38 10.69 -10.69 4.12 -14.71 1.18 -7.13 6.12 10.50 2.37 3
PNB 16.48 10.17 8.48 -10.87 3.59 -32.44 -25.38 0.68 2.86 4.02 -2.24 5
SBI 15.43 10.03 10.62 7.30 6.97 -3.73 0.44 7.16 9.31 13.01 7.65 1
Union 15.05 10.41 10.11 6.99 2.69 -24.00 -12.54 -10.56 6.11 7.75 1.20 4

Figure 4.1 - E. 3 Return on Equity (ROE) (PSU Banks)

Return on Equity (ROE) (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
16.48
15.68

15.43

15.05
13.80

13.21

13.01
10.69

10.62
10.50

10.41
10.38

10.17

10.11
10.03

9.31
9.21

8.93

8.48

7.75
7.30

7.16

6.99
6.97

6.11
6.12
4.12

4.02
3.80

3.59

2.86

2.69
1.18
1.16
1.06
1.02

0.68

BOB C ANAR A PNB SBI 0.44 Union

-3.73
-6.32

-7.13

-10.56
-10.69

-10.87

-12.54
-14.40

-14.71

-24.00
-25.38
-32.44

52
 Table 4.1 - E. 4 Return on Equity (ROE) (PVT Banks)

Return on Equity (ROE) = Net Income / Average Shareholders Equity

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 18.53 17.43 17.75 16.81 6.76 0.46 7.19 2.15 7.06 12.03 10.62 9
HDFC 20.34 21.28 19.37 18.26 17.95 17.87 16.50 16.40 16.61 16.67 18.13 6
ICICI 13.10 14.02 14.55 11.63 10.66 6.81 3.24 7.25 12.56 14.99 10.88 8
Kotak 15.65 13.83 14.13 10.97 13.23 12.55 12.18 13.08 12.47 12.68 13.08 7
Yes 24.81 25.02 21.33 19.94 18.58 17.67 6.53 -67.52 -12.61 3.19 5.69 10

Figure 4.1 - E. 4 Return on Equity (ROE) (PVT Banks)

Return on Equity (ROE) (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

25.02
24.81
21.33
21.28
20.34

19.94
19.37
18.53

18.58
18.26
17.95
17.87
17.75

17.67
17.43
16.81

16.67
16.61
16.50
16.40

15.65
14.99
14.55
14.02

14.13
13.83

13.23
13.10

13.08
12.68
12.56

12.55

12.47
12.18
12.03

11.63

10.97
10.66

7.25
7.19
7.06
6.76

6.81

6.53
3.24

3.19
2.15
0.46

Ax i s HD FC ICICI K ot ak Yes

-12.61
-67.52

53
Net Interest Margin (NIM)

Table 4.1 - E. 5 Net Interest Margin (NIM) (PSU Banks)

Net Interest Margin (NIM) = (Interest Income - Interest Expense) / Interest Earning Assets

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
BOB 2.12 1.86 1.90 2.00 2.04 2.27 2.50 2.53 2.65 2.68 2.26 9
CANARA 1.98 1.89 1.86 1.86 1.79 2.11 2.24 1.94 2.23 2.26 2.02 10
PNB 3.19 3.00 2.82 2.37 2.16 2.05 2.33 2.21 2.59 2.33 2.51 7
SBI 2.93 2.83 2.84 2.59 2.47 2.35 2.62 2.71 2.67 2.62 2.66 6
Union 2.47 2.28 2.33 2.15 2.06 2.01 2.19 2.19 2.45 3.56 2.37 8

Figure 4.1 - E. 5 Net Interest Margin (NIM) (PSU Banks)

Net Interest Margin (NIM) (psu banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

3.56
3.19
3.00

2.93
2.84
2.83
2.82

2.71
2.68

2.67
2.65

2.62

2.62
2.59

2.59
2.53
2.50

2.47
2.47

2.45
2.37

2.35
2.33

2.33

2.33
2.28
2.27

2.26
2.24
2.23

2.21

2.19
2.19
2.16

2.15
2.12

2.11

2.06
2.05
2.04

2.01
2.00

1.98

1.94
1.90

1.89
1.86
1.86

1.86
1.79

BOB C AN AR A PNB SBI Union

54
 Table 4.1 - E. 6 Net Interest Margin (NIM) (PVT Banks)

Net Interest Margin (NIM) = (Interest Income - Interest Expense) / Interest Earning Assets

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 2.92 3.21 3.27 3.34 3.28 2.92 2.95 3.05 3.24 3.03 3.12 4
HDFC 4.18 3.99 4.05 3.95 4.05 3.92 4.04 3.82 3.83 3.64 3.95 2
ICICI 2.76 2.96 3.24 3.24 3.10 2.88 3.09 3.28 3.40 3.55 3.15 3
Kotak 3.96 4.40 4.18 3.82 3.99 3.75 3.72 3.88 4.16 4.05 3.99 1
Yes 2.36 2.65 2.76 2.94 2.87 2.61 2.74 3.04 3.10 2.32 2.74 5

Figure 4.1 - E. 6 Net Interest Margin (NIM) (PVT Banks)

Net Interest Margin (NIM) (pvt banks)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

4.40
4.18
4.18

4.16
4.05
4.05

4.05
4.04
3.99

3.99
3.96
3.95
3.92

3.88
3.83
3.82

3.82
3.75
3.72
3.64

3.55
3.40
3.34

3.28
3.28
3.27

3.24

3.24
3.24
3.21

3.10

3.10
3.09
3.05

3.04
3.03

2.96
2.95

2.94
2.92

2.92

2.88

2.87
2.76

2.76

2.74
2.65

2.61
2.36

2.32
Ax i s HDFC ICICI Kotak Yes

55
Interest Spread (IS)

Table 4.1 - E. 7 Interest Spread (IS) (PSU Banks)

Interest Spread (IS) = (Interest Income/ Interest earning assets) - (Interest Expense/ Interest
bearing Liabilities)
Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
BOB 5.95 5.35 5.48 6.33 6.47 5.91 6.18 6.34 5.95 5.75 5.97 10
CANARA 7.11 6.30 6.43 6.80 6.21 5.65 5.89 5.96 6.58 6.07 6.30 8
PNB 7.29 6.95 6.73 6.26 6.40 6.36 6.42 6.58 7.61 6.41 6.70 6
SBI 5.95 5.75 6.26 6.00 6.36 6.65 6.45 6.59 7.06 6.62 6.37 7
Union 5.96 6.24 5.84 5.65 5.71 6.18 6.27 6.69 7.12 6.57 6.22 9

Figure 4.1 - E. 7 Interest Spread (IS) (PSU Banks)

Interest Spread (IS) (PSU BANKS)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
7.61
7.29

7.12
7.11

7.06
6.95
6.80

6.73

6.69
6.65

6.62
6.59
6.58
6.58

6.57
6.47

6.45
6.43

6.42

6.41
6.40
6.36

6.36
6.34
6.33

6.30

6.27
6.26

6.26

6.24
6.21

6.18
6.18

6.07

6.00
5.96

5.96
5.95

5.95

5.95
5.91

5.89

5.84
5.75
5.75

5.71
5.65

5.65
5.48
5.35

BOB C ANAR A PNB SBI Union

56
 Table 4.1 - E. 8 Interest Spread (IS) (PVT Banks)

Interest Spread (IS) = (Interest Income/ Interest earning assets) - (Interest Expense/ Interest
bearing Liabilities)
Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 7.89 7.68 7.34 6.92 6.85 5.90 6.37 6.21 6.25 6.12 6.75 5
HDFC 8.78 8.01 8.00 7.79 7.46 7.79 7.20 7.02 6.86 6.14 7.51 2
ICICI 7.82 7.35 7.04 6.83 6.58 6.43 6.36 7.14 6.86 6.73 6.91 4
Kotak 9.82 9.52 8.37 7.87 7.64 6.95 6.70 7.79 8.21 6.94 7.98 1
Yes 10.73 10.33 8.43 7.53 6.56 5.41 6.37 6.42 6.45 5.86 7.41 3

Figure 4.1 - E. 8 Interest Spread (IS) (PVT Banks)

Interest Spread (IS) (PVT BANKS)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

10.73
10.33
9.82
9.52
8.78

8.43
8.37

8.21
8.01
8.00
7.89

7.87
7.82
7.79
7.79

7.79
7.68

7.64

7.53
7.46

7.35
7.34

7.20

7.14
7.04
7.02

6.95

6.94
6.92

6.86
6.86
6.85

6.83

6.73

6.70
6.58

6.56

6.45
6.43

6.42
6.37

6.37
6.36
6.25
6.21

6.14
6.12
5.90

5.86
5.41

Ax i s HD FC ICICI K ot ak Yes

57
Interest Income to Total Income Ratio

Table 4.1 - E. 9 Interest Income to Total Income Ratio (PSU Banks)

Interest Income to Total Income Ratio = Interest Income / Total Income

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
BOB 0.91 0.90 0.91 0.90 0.86 0.87 0.89 0.88 0.84 0.86 0.88 3
CANARA 0.92 0.91 0.91 0.90 0.85 0.86 0.88 0.86 0.82 0.81 0.87 5
PNB 0.91 0.90 0.89 0.89 0.84 0.84 0.87 0.85 0.87 0.86 0.87 4
SBI 0.88 0.88 0.87 0.85 0.83 0.83 0.87 1.18 0.86 0.87 0.89 1
Union 0.91 0.91 0.90 0.90 0.87 0.87 0.88 0.88 0.85 0.84 0.88 2

Figure 4.1 - E. 9 Interest Income to Total Income Ratio (PSU Banks)

Interest I ncome to Total Income Rati o (PSU

BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.18
0.92

0.91
0.91

0.91
0.91

0.91
0.91

0.91

0.90

0.90
0.90

0.90
0.90
0.90

0.89
0.89

0.89

0.88
0.88
0.88

0.88
0.88

0.88
0.87
0.87

0.87

0.87
0.87

0.87
0.87

0.87
0.86
0.86

0.86
0.86
0.86

0.86

0.85

0.85
0.85
0.85
0.84

0.84

0.84
0.84

0.83
0.83
0.82
0.81

BOB C ANAR A PNB SBI Union

58
 Table 4.1 - E. 10 Interest Income to Total Income Ratio (PVT Banks)

Interest Income to Total Income Ratio = Interest Income / Total Income

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.81 0.81 0.81 0.81 0.79 0.81 0.81 0.80 0.84 0.82 0.81 4
HDFC 0.84 0.84 0.84 0.85 0.85 0.84 0.85 0.83 0.83 0.81 0.84 2
ICICI 0.83 0.81 0.80 0.77 0.74 0.76 0.81 0.82 0.81 0.82 0.80 5
Kotak 0.87 0.86 0.83 0.86 0.84 0.83 0.84 0.83 0.84 0.81 0.84 1
Yes 0.87 0.85 0.85 0.83 0.80 0.80 0.87 0.69 0.87 0.85 0.83 3

Figure 4.1 - E. 10 Interest Income to Total Income Ratio (PVT Banks)

Interest Income to Total Income Rati o (PVT

BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.87

0.87
0.87

0.87
0.86
0.86

0.85
0.85
0.85
0.85
0.85
0.85
0.84

0.84
0.84
0.84
0.84

0.84
0.84

0.84

0.83

0.83
0.83

0.83
0.83

0.83
0.83

0.82
0.82
0.82
0.81

0.81
0.81
0.81

0.81
0.81
0.81
0.81

0.81
0.81
0.81

0.80

0.80

0.80
0.80
0.79

0.77
0.76
0.74

0.69
Ax i s HD FC ICICI K ot ak Yes

59
 LIQUIDITY

Cash to Deposit Ratio (CD Ratio)

Table 4.1 - L. 1 Cash to Deposit Ratio (CD Ratio) (PSU Banks)

Cash to Deposit Ratio (CD Ratio) = Cash / Total Deposits

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank

BOB 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.03 0.04 0.05 0.04 5
CANARA 0.04 0.05 0.05 0.04 0.04 0.04 0.05 0.04 0.04 0.05 0.04 4
PNB 0.05 0.05 0.05 0.05 0.04 0.04 0.05 0.05 0.04 0.05 0.05 3
SBI 0.05 0.06 0.07 0.07 0.06 0.06 0.06 0.05 0.06 0.06 0.06 1
Union 0.04 0.06 0.05 0.05 0.04 0.05 0.05 0.04 0.04 0.04 0.05 2

Figure 4.1 - L. 1 Cash to Deposit Ratio (CD Ratio) (PSU Banks)

Cash to Deposit Rati o (psu BANKS)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.07
0.07

0.06
0.06

0.06
0.06

0.06
0.06
0.06
0.05
0.05
0.05

0.05

0.05
0.05
0.05

0.05
0.05
0.05
0.05
0.05
0.05

0.05

0.05
0.05

0.05

0.05
0.04

0.04
0.04
0.04
0.04

0.04

0.04
0.04
0.04

0.04
0.04
0.04
0.04
0.04

0.04
0.04
0.04
0.04
0.04

0.04
0.03
0.03
0.03

BOB C AN AR A PNB SBI Union

60
 Table 4.1 - L. 2 Cash to Deposit Ratio (CD Ratio) (PVT Banks)

Cash to Deposit Ratio (CD Ratio) = Cash / Total Deposits

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.06 0.06 0.06 0.06 0.07 0.08 0.06 0.13 0.07 0.11 0.08 1
HDFC 0.05 0.07 0.06 0.06 0.06 0.13 0.05 0.06 0.07 0.08 0.07 2
ICICI 0.07 0.07 0.07 0.06 0.06 0.06 0.06 0.05 0.05 0.06 0.06 3
Kotak 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.05 0.05 5
Yes 0.05 0.06 0.06 0.05 0.05 0.06 0.05 0.06 0.04 0.05 0.05 4

Figure 4.1 - L. 2 Cash to Deposit Ratio (CD Ratio) (PVT Banks)

cASH TO DEPOSIT RATIO (PVT BANKS)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.13

0.13
0.11

0.08
0.08
0.07

0.07

0.07

0.07
0.07

0.07
0.07

0.06
0.06
0.06

0.06
0.06
0.06

0.06
0.06
0.06

0.06

0.06
0.06

0.06

0.06

0.06
0.06

0.06
0.06

0.05

0.05
0.05
0.05

0.05

0.05
0.05
0.05
0.05

0.05
0.05
0.05

0.05
0.05

0.05
0.05

0.04
0.04

0.04
0.04

Ax i s HD FC ICICI K ot ak Yes

61
Government Securities to Total Asset Ratio
Table 4.1 - L. 3 Government Securities to Total Asset Ratio (PSU Banks)

Government Securities to Total Asset Ratio (G-Sec /Tot ASS Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank

BOB 0.19 0.15 0.14 0.15 0.16 0.20 0.21 0.21 0.20 0.22 0.18 4
CANARA 2.47 2.19 2.29 2.30 2.33 2.07 1.97 2.23 2.09 2.15 2.21 1
PNB 2.25 2.04 2.05 1.90 2.05 2.01 2.09 2.47 2.74 2.47 2.21 2
SBI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5
Union 0.20 0.20 0.19 0.18 0.20 0.20 0.19 0.19 0.23 0.22 0.20 3

Figure 4.1 - L. 3 Government Securities to Total Asset Ratio (PSU Banks)

Government Securiti es to Total Asset Rati o

(PSU BANKS)
2013 2014 2015 2016 2017 2018
2.74 2019 2020 2021 2022
2.47

2.47
2.47
2.33
2.30
2.29

2.25
2.23
2.19

2.15

2.09
2.09
2.07

2.05
2.05
2.04

2.01
1.97

1.90

0.23
0.22
0.22
0.21
0.21
0.20

0.20
0.20

0.20

0.20
0.20

0.19
0.19

0.19
0.19

0.18
0.16
0.15
0.15
0.14

0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00

BOB CANAR A P NB SBI Union

62
 Table 4.1 - L. 4 Government Securities to Total Asset Ratio (PVT Banks)

Government Securities to Total Asset Ratio (G-Sec /Tot ASS Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.21 0.18 0.18 0.18 0.15 0.15 0.15 0.14 0.19 0.19 0.17 5
HDFC 2.12 1.93 2.04 2.13 1.88 1.77 1.95 2.12 2.01 1.77 1.97 2
ICICI 1.73 1.61 1.66 1.57 1.46 1.61 1.55 1.74 1.86 1.89 1.67 3
Kotak 2.58 1.99 2.16 2.12 1.69 1.95 1.86 1.72 2.23 1.75 2.00 1
Yes 0.24 0.21 0.22 0.21 0.17 0.16 0.18 0.13 0.12 0.14 0.18 4

Figure 4.1 - L. 4 Government Securities to Total Asset Ratio (PVT Banks)

Government Securiti es to Total Asset Rati o

(PVT BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2.58

2.23
2.16
2.13

2.12
2.12

2.12
2.04

2.01

1.99

1.95
1.95
1.93

1.89
1.88

1.86

1.86
1.77

1.77

1.75
1.74
1.73

1.72
1.69
1.66
1.61

1.61
1.57

1.55
1.46

0.24
0.22
0.21

0.21
0.21
0.19
0.19
0.18
0.18
0.18

0.18
0.17
0.16
0.15
0.15
0.15
0.14

0.14
0.13
0.12
Ax i s HD FC ICICI K otak Yes

63
Total Investment to Total Deposit Ratio

Table 4.1 - L. 5 Total Investment to Total Deposit Ratio (PSU Banks)

Total Investment to Total Deposit Ratio (INV/DEP Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank

BOB 0.26 0.20 0.19 0.21 0.22 0.28 0.29 0.29 0.27 0.30 0.25 3
CANARA 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 5
PNB 0.33 0.32 0.30 0.29 0.30 0.31 0.30 0.34 0.36 0.32 0.32 2
SBI 0.29 0.29 0.31 0.33 0.37 0.39 0.33 0.32 0.37 0.37 0.34 1
Union 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 0.34 0.06 4

Figure 4.1 - L. 5 Total Investment to Total Deposit Ratio (PSU Banks)

Total Investment to Total Deposit Rati o (PSU

BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.39
0.37

0.37
0.37
0.36
0.34

0.34
0.33

0.33
0.33

0.32

0.32
0.32

0.31

0.31
0.30

0.30
0.30
0.30

0.29
0.29

0.29
0.29
0.29
0.28

0.27
0.26

0.22
0.21
0.20
0.19

0.04
0.03

0.03
0.03
0.03
0.03

0.03
0.03
0.03

0.03
0.03
0.03

0.03
0.03

0.03
0.03
0.03
0.03
0.03

BOB CANARA P NB SBI Union

64
 Table 4.1 - L. 6 Total Investment to Total Deposit Ratio (PVT Banks)

Total Investment to Total Deposit Ratio (INV/DEP Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.45 0.40 0.36 0.37 0.31 0.34 0.32 0.24 0.32 0.34 0.35 2
HDFC 0.04 0.03 0.03 0.04 0.03 0.03 0.03 0.03 0.03 0.03 0.03 5
ICICI 0.06 0.05 0.04 0.04 0.03 0.04 0.03 0.03 0.03 0.03 0.04 3
Kotak 0.06 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.04 0.03 0.04 4
Yes 0.64 0.55 0.47 0.44 0.35 0.34 0.39 0.42 0.27 0.26 0.41 1

Figure 4.1 - L. 6 Total Investment to Total Deposit Ratio (PVT Banks)

Total Investment to Total Deposit Rati o (PVT

BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.64
0.55
0.47
0.45

0.44

0.42
0.40

0.39
0.37
0.36

0.35
0.34
0.34

0.34
0.32
0.32
0.31

0.27
0.26
0.24

0.06

0.06
0.05
0.04

0.04
0.04

0.04
0.04

0.04
0.04
0.04
0.04

0.03
0.03
0.03

0.03
0.03

0.03
0.03

0.03

0.03
0.03

0.03

0.03
0.03

0.03
0.03

0.03

0.03

0.03

Ax i s HD FC ICICI K ot ak Yes

65
Interest Expended to Interest Earned Ratio

Table 4.1 - L. 7 Interest Expended to Interest Earned Ratio (PSU Banks)

Interest Expended to Interest Earned Ratio (INT EXP/ INT EARN Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank

BOB 0.68 0.69 0.69 0.71 0.68 0.64 0.63 0.64 0.59 0.53 0.65 2
CANARA 0.77 0.77 0.78 0.78 0.76 0.71 0.69 0.73 0.65 0.62 0.73 5
PNB 0.65 0.63 0.64 0.68 0.68 0.69 0.67 0.68 0.62 0.62 0.65 3
SBI 0.63 0.64 0.64 0.65 0.65 0.66 0.64 0.45 0.58 0.56 0.61 1
Union 0.70 0.73 0.74 0.74 0.73 0.72 0.70 0.69 0.64 0.59 0.70 4

Figure 4.1 - L. 7 Interest Expended to Interest Earned Ratio (PSU Banks)

Interest Expended to Interest Earned Rati o

(PSU BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.78
0.78
0.77
0.77

0.76

0.74
0.74
0.73

0.73

0.73
0.72
0.71

0.71

0.70

0.70
0.69

0.69
0.69

0.69

0.69
0.68
0.68
0.68

0.68

0.68
0.67

0.66
0.65

0.65
0.65
0.65
0.64

0.64

0.64
0.64
0.64

0.64

0.64
0.63
0.63

0.63

0.62
0.62

0.62
0.59

0.59
0.58
0.56
0.53

0.45

BOB C ANAR A PNB SBI Union

66
 Table 4.1 - L. 8 Interest Expended to Interest Earned Ratio (PVT Banks)

Interest Expended to Interest Earned Ratio (INT EXP/ INT EARN Ratio)

Bank Name 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Rank
Axis 0.64 0.61 0.60 0.59 0.59 0.59 0.61 0.60 0.54 0.51 0.59 4
HDFC 0.55 0.55 0.54 0.54 0.52 0.50 0.51 0.51 0.46 0.44 0.51 1
ICICI 0.65 0.63 0.61 0.60 0.60 0.58 0.57 0.56 0.51 0.45 0.58 3
Kotak 0.60 0.58 0.57 0.58 0.54 0.52 0.53 0.50 0.43 0.38 0.52 2
Yes 0.73 0.73 0.70 0.66 0.65 0.62 0.67 0.74 0.63 0.66 0.68 5

Figure 4.1 - L. 8 Interest Expended to Interest Earned Ratio (PVT Banks)

Interest Expended to Interest Earned Rati o

(PVT BANKS)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.74
0.73
0.73
0.70

0.67
0.66

0.66
0.65

0.65
0.64

0.63
0.63

0.62
0.61
0.61

0.61

0.60
0.60

0.60
0.60

0.60
0.59
0.59
0.59

0.58

0.58
0.58
0.57

0.57
0.56
0.55
0.55

0.54

0.54
0.54

0.54

0.53
0.52

0.52
0.51
0.51
0.51

0.51
0.50

0.50
0.46

0.45
0.44

0.43
0.38

Ax i s HD FC ICICI K ot ak Yes

67
 Key Findings

In respect of Capital Adequacy,

 It is observed that all selected PSU and PVT banks are maintaining the
appropriate Capital adequacy ratio as per RBI guidelines.
 In terms of Debt to Equity Ratio, a leading PSU bank SBI Debt to Equity
ratio varies between 1.5 to 2, over 10 year time period, Which is an
acceptable level, but same time little higher side. In respect of PVT banks,
HDFC and Kotak bank doing a great job by maintaining their debt-to-equity
ratio on the lower side.
 In respect of the Total Advances to Total assets ratio, in the PSU banks
group, CANARA and PNB banks and a group of PVT banks HDFC, Kotak,
and ICICI Banks have a very impressive ratio over the 10 years.
 CANARA, PNB, And Union in selected PSU Banks Where HDFC, ICICI,
and Kotak Bank in selected PVT group have impressive government
securities to total investment ratio.

In respect of Asset Quality,

 In respect of NPA, an increase in NPA is a huge problem in the Indian

banking sector, but in the financial year 2021-23 NPA amount decreased
significantly.
 The Total Investment to Total Asset ratio of PNB is pretty higher compared
to its peer PSU banks whereas PVT bank’s ratio is at the same level as each
other.
 In respect of Management,
 SBI in selected PSU banks and HDFC in Selected PVT banks has very low
Total expenditure to Total Income Ratio, which is indicating that both banks
have good management.

68
In respect of Management,

 The total advances to Total Deposits ratio of PSU banks and PVT Banks are
at the same level with its peers, but PVT Banks’ ratio is little a bit higher than
PSU banks which positive sign for PVT banks
 In respect of the Asset Turnover Ratio, all PVT banks have a better ratio than
PSU banks, PSU The Leading PSU banks like SBI, BOB, and Union Bank
has very low ATR which is indicating poor performance.
 Diversification ratio of all selected PSU and PVT banks with its peers.
 The business per employee ratio of PSU banks is very impressive compared
with PVT banks, Even though market leaders like HDFC, Kotak, and ICICI
has very low business per employee ratio but these banks have very good
profit per employees ratio. In Both, Business per employee and Profit per
employee ratio, Axis banks outperformed its peers.

In respect of Earning Quality

 PVT banks have very impressive Net Profit Margins, with HDFC Bank
ranking first and Kotak Bank ranking second. PVT banks have much higher
net profit margins than PSU banks. All PSU banks have extremely low net
profit margins, indicating poor performance.
 Even though PSU banks struggle to maintain high net profit margins, they
perform well in terms of return on equity; however, PVT banks' return on
equity performance is higher than PSU banks. In terms of Return on Equity,
HDFC banks outperform both their PVT bank peers and their PSU bank
peers.
 In terms of net interest margins, all PSU banks have consistently had very
low net interest margins over the last ten years, though the situation is
slightly changing with some positive signs in the recent fiscal year, 2021-22.
PVT banks, on the other hand, have good net interest margins, with HDFC
and Kotak banks having above-average net interest margins over the last ten
years, and other PVT banks have good interest margins.

69
  Another ratio where PVT banks outperform PSU banks is the interest Spread
ratio. However, the difference in Interest Spread between PSU banks and
PVT banks is negligible.
 With the ratio of Interest Income to Total Assets being the same for both
PSU banks and PVT banks.

In respect of Liquidity

 The cash-to-deposit ratio of axis bank is the highest among all selected
banks, followed by HDFC bank. Both PSU banks and PVT banks perform at
the same level.
 The government securities to Total Assets ratio of CANARA bank and PNB
at the appropriate level in a group of PSU banks and a group of PVT banks
HDFC, ICICI, and Kotak banks have the appropriate level.
 The Liquidity of PSU banks and PVT banks has a lot of scope for
improvement

70
 5. Chapter 5
5.1.Conclusions
A nation's banking system has a big impact on its economy. Countries' financial
systems have expanded, which has resulted in significant country-level economic
growth. The CAMEL approach is an important tool for assessing a bank's
relative financial health and for formulating recommendations for improving its
weaknesses. In order to assess the performance of the banks, the Reserve Bank of
India adopted the CAMEL rating system in 1996 along with other already-in-use
methods and procedures. The CAMEL model is a crucial instrument for
assessing the relative financial health of a banking system and for proposing
appropriate solutions to address any shortcomings. A ratio-based methodology to
evaluate the performance of banks is called the CAMEL model. The quality and
methods of supervision have been improved by central banks all over the world
as a result of recent major changes in the banking industry. Numerous developed
nations currently use the CAMEL rating financial rating system in addition to
other widely used methods and procedures when assessing the performance of
banks. The study mentioned above is a modest attempt to describe the numerous
ratios that are useful for gauging the financial performance of the banking
industry. Numerous academics use the ratios reported in the current study to
evaluate the performance of banks in their individual investigations. According
to their scores on the five characteristics, various banks are ranked. In the current
study, we used five crucial metrics—Capital Adequacy, Assets Quality,
Management Efficiency, Earning Quality, and Liquidity—to evaluate the
financial performance of the chosen private sector banks and public sector banks
in India and to identify the main influences on that performance.

As for Consolidation, using CAMEL parameters, it can be observed that even

though PSU banks have Capital and performance regarding Capital adequacy is
also sufficient. Earning Quality of PSU banks is also in good condition. But
Management, Asset Quality, and Liquidity related ratios calculations present
such a picture that indicates towards PSU banks need to improve their
performance in their respective areas. Also, Despite the sector, PSU Bank and

71
PVT Banks, the increase in NPAs create a serious impact on Bank’s Asset
Quality. In PVT banks AXIS Bank, HDFC Bank, and ICICI Bank performing
very astonishingly, and with this study, it is observed that PVT banks performing
very well compare with PSU Banks.

5.2.Recommendations
 SBI’s Debt-to-equity ratio for the last 10 financial years is constantly on the
higher side. It will be more positive for SBI if the bank tries to lower the
Debt-to-equity ratios by exploring other capital options.
 This study observed that YES Bank’s performance shows a downward
trajectory over the last 10 financial years, YES banks require serious
fundamental changes in areas like earning quality and liquidity to its to
improve its performance.
 In respect of NIM, PSU banks’ performance constant through the last 10
financial years, which requires some improvement in comparison to PVT
banks

72
 6. References

Bansal, R. (n.d.). Retrieved from

https://www.researchgate.net/profile/Anoop-Mohanty/publication/261635642_A
n_Empirical_study_on_Financial_performance_of_Commercial_Banks_in_India_Ap
plication_of_CAMEL_model/links/551c1c8d0cf2fe6cbf767035/An-Empirical-study-
on-Financial-performance-of-Comm

Jain. (n.d.). Retrieved from

https://www.researchgate.net/profile/Sudhir-Yadav/publication/350610623_IJTC-
V6-N2_2017/links/6068b28692851c91b19fe3f1/IJTC-V6-N2-2017.pdf#page=26

Kumar, M. A. (n.d.). Retrieved from

https://d1wqtxts1xzle7.cloudfront.net/60844946/Analyzing_Soundness_in_Indian_
Banking_A20191009-47008-lpa30u-libre.pdf?1570613535=&response-content-
disposition=inline%3B+filename
%3DAnalyzing_Soundness_in_Indian_Banking_A.pdf&Expires=1674334771&Signat
ure=a~

Mohiuddin, G. (n.d.). Retrieved from

http://article.jfinacc.com/pdf/10.11648.j.jfa.20140203.16.pdf

Patel. (n.d.). Retrieved from

https://www.researchgate.net/profile/Ms-Sharma-3/publication/333534446_A_st
udy_on_performance_rating_of_SBI_Group_Camel_model_analysis/links/
5d03bda5299bf12e7bddeac5/A-study-on-performance-rating-of-SBI-Group-Camel-
model-analysis.pdf

73
7. Annexures

74