ANNEXAURE

ANNEXAURE-A-LIST OF PUBLISHED RESEARCH PAPER

1. “A Comparative Study of the Selected Public Sector and Private Sector

Bank: A CAMEL Approach” published inNEWEST,ISSN-2349-
3372,International Multidisciplinary Referred Journal, Volume 1,Issue
4,April-2016,pg-8-12.
2. "Analyzing Financial Performance of Selected Public Sector Banks,
through CAMEL model" published in NEWEST, ISSN-2349-3372,
International Multidisciplinary Referred Journal, Volume 1, Issue 4, April-
2018, pg-14-18

ANNEXAURE-B-LIST OF PRESENTED RESEARCH PAPER

1. “ An Evaluation of Canada’s Export and Import Trend with Special

reference to India” paper presented at 31st” International Conference on
“Interpreting Indo-Canadian Echoes of Voices” , Sponsored by Indian
Association for Canadian Studies, Organized by C.U Shah University,
Wadhwan City,28th& 29th March 2018.
2. “A Comparative Review of the Demonetization with reference to Selected
Indian Banks" paper presented at the National Conference jointly organised
by Dr.BabasahebAmbedkar Open University, Ahmedabad & Gujarat
SahityaAcademy, and Gandhinagar held on 13-14 April, 2018 at
Dr.Babasaheb Ambedkar Open University, Ahmedabad

ANNEXAURE-C-REPRINT OF PUBLISHED RESEARCH PAPER

[ATTACHED FROM THE NEXT PAGE AS PUBLISHED IN THE JOURNAL]

225
ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal 8

Newest International A Comparative Study of the Selected

Public Sector and Private Sector
Multidisciplinary Journal Bank: A CAMEL Approach
ISSN : 2349 - 3372
April: 2016 Year :2 Vol : 1 Nilesh Lakhtaria, Research Scholar,
Dept. of Commerce
Page : 8-12 Saurashtra University, Rajkot

Abstract sector banks in terms of providing banking

services as well as financial performance.
The objective of this paper is to
compare the performance of the 6 leading The researcher has taken three Public
public sector and private sector banks over the Sector Banks namely, the State Bank of India
period of five years (2007-2011) with the help (SBI), Bank Of Baroda (BOB) and Punjab
of CAMEL model. This paper concluded that National Bank(PNB) and three new public
private sector banks have performed better sector banks like; ICICI Bank Ltd, HDFC Bank
having first and third position of HDFC and Ltd and AXIS Bank Ltd.
ICICI but BOB being a public sector bank got
CAMEL Model
the second rank during the study period and
revealed that there is tough going for the public CAMELS are an acronym for six
sector bank in light of private sector banks. parameters, Capital Adequacy, Assets Quality,
Management soundness, Earning, Liquidity and
Key Words :CAMEL approach,
Sensitivity to market risk. here the researcher
public sector and private sector bank
has considered five parameters.
Introduction
Review of literature
The Indian banking sector has been a
 Bodla B.S (2003) in this study the
pivot of Indian economy since the
researcher has taken two banks one was
independence of India. It has passed through
SBI a Public sector bank and other is
nationalized, liberalization and many new
ICICI a private sector bank. In
amendments. The Reserve Bank of India (RBI)
conclusion of the study it is stated that
being a central bank and the apex authority
SBI performed better than ICICI in
control and guide the banking sector. We have
terms of CAR norms. While ICICI has
Public sector banks, old private sector banks
an advantage over SBI for Asset
and new private sector banks on the basis of
Quality, Earning ability and
control and management power. There a
Management efficiency. But there
competitive business environment even in
wasn’t much difference regarding
banking sector between public and private
Liquidity position of both banks during
the study period.
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(The IFCAI Journal of
Management Vol-50 No-3 P.P 49-63)
 Singh.R (2003) The researcher wanted
to analyze profitability management
banks under Deregulate environment
with some financial parameters of the
public sector banks, old private sector
banks, new private sector banks and
foreign banks. He stated
profitability has declined in
deregulated environment. He suggested
to make the banking sector more
competitive and to prefer non-interest
income source.
(Research paper, IBA Bulletin-2003)
 Dr.Sanjay Bhayani(2006) He studied
four leading private sector Banks ICICI,
HDFC, IDBI and UTI. He compared the
performance of all the banks and
concluded that the all over performance
of IDBI was the best followed by UTI.
(The ICFAI Journal of Management
Research, Vol-5 No-11 P.P 53-70)
Methodology of the study
Objective
 To analyze the performance of selected
banks under study.
 To compare the performance of selected
banks under study.
 To give ranking to the selected banks as
per CAMEL model parameters.
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Bank Source of Data
The study is based on secondary data.
The source of data are bank’s financial
statements, annual reports for the period of
2007-2011.More information is collected from
RBI and IBA. Moreover some journals and
related websites are referred and visited to
collect the data.
that
Plan of analysis
the
Ratio analysis is the best tool for
analyzing and comparing the performance of
the financial institute. The researcher would
calculate various ratios under CAMEL model
and the best ratio would be given the first rank
following the lesser rank. The researcher has
taken two ratios in each parameter and then
give the overall rank according to the
performance of the bank.
Capital Adequacy-It is important
for a bank to maintain depositor’s faith and
preventing the bank being bankrupt. It reflects
the overall financial condition of bank and also
the ability of management to meet the need of
additional capital. The Capital Adequacy Ratio
(CAR) is propounded to ensure that bank can
take up a reasonable level of risks arising from
its operational losses. The higher the CAR
indicates the stronger the bank and the more
protection for the depositors
The Basel III norms stipulated a capital
to risk weighted assets of 8%. However, as per
RBI norms, Indian scheduled commercial
banks are required to maintain a CAR of 9%
ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal
while Indian public sector banks are
emphasized to maintain a CAR of 12%.
Here the researcher has taken CAR and
Debt/Equity ratio for the study as an average of
the five year period to give the ranking. (
Table-1 )
Assets quality -The quality of assets
is an important parameter to gauge the strength
of bank. The prime motto behind measuring the
assets quality is to ascertain the component of
non performing assets as a percentage of the
total assets.
Here Net NPA to Total Assets and Net
NPA to Net Advances ratios are taken into
study.(Table-2)
Management -Management
efficiency is another important element of the
CAMEL Model. The ratio in this segment
involves subjective analysis to measure the
efficiency and effectiveness of management
efficiency is another essential component of the
CAMEL model that guarantee the growth and
survival of a bank.
Here the researcher has taken Business
per Employee and Profit per Employee to study
the management aspect.(Table-3)
Earning -The quality of earnings is a
very important criterion that determines the
ability of a bank to earn consistently. It
basically determines the profitability of bank
and explains its sustainability and growth in
earnings in future. The continued viability of a
bank depends on its ability to earn an
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appropriate return on its assets which enables
the institution to fund expansion, remain
competitive and increase capital.
The researcher has taken Interest
Income to Total Income and Non Interest
Income to Total Income ratio in this study. It is
obvious that total income is classified into
interest and non interest income as they are
mutually exclusive their ranks would cross
each and other and the final rank will be
the same for each bank.(Table-4)
Liquidity-Risk of liquidity is curse to
the image of bank. Bank has to take a proper
care to hedge the liquidity risk; at the same
time ensuring good percentage of funds are
invested in high return generating securities, so
that it is in a position to generate profit with
provision liquidity to the depositors.
Liquid Asset to Total Deposit and
Liquid asset to Total asset ratio are covered in
the study.(Table-5)
The group rankings of the banks under
study are considered for the purpose and taken
averaged out to reach at the overall
ranking.(Table-6)
Conclusion
As per capital adequacy BOB stood the
first, while HDFC stood first on management
and Liquidity Norms and AXIS showed the
best Management Efficiency. The overall
performance of HDFC from the private sector
bank at the top following BOB a Public sector
bank and third one is ICICI bank. It is clear that
ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal 11
private sector bank has better performed Table-3 Management -Group Ranking
through out the study period than public sector SBI BOB PNB ICICI HDFC AXIS
bank as they stood on the last two positions.
B.P.E 6 3 4 2 5 1

Limitations P.P.E 6 3 5 2 4 1

Average 6 3 4.5 2 4.5 1

The researcher has taken only six banks
Rank 6 3 4.5 2 4.5 1
three from private sector and three from public
sector only for the study period of five years
with the help of only two parameter in each Table-4 Earning Quality-Group Ranking
aspects of CAMEL model, so this study limited SB BO PN ICIC HDF AXI
I B B I C S
in those terms and not applicable for the whole
banking industry forever as fully analysis of the I.I/T.I(%) 3 2 1 6 4 5

banking. N.I.I/T.I(% 4 5 6 1 3 2
)
Table-1 Capital Adequacy parameter-Group Average 3.5 3.5 3.5 3.5 3.5 3.5
Ranking
Rank 3.5 3.5 3.5 3.5 3.5 3.5
SBI BOB PNB ICICI HDFC AXIS

CAR 6 3 5 1 2 4
Table-5 Liquidity Quality-Group Ranking
D/E 3 1 2 6 5 4
SB BO PN ICIC HDF AXI
Ratio
I B B I C S
Average 4.5 2 3.5 3.5 3.5 8
L.A/T.D( 5 6 3 1 2 4
%)
Rank 5 1 3 3 3 6
L.A/T.A( 4 1 6 5 2 3
%)
Table- 2 Asset Quality parameter-Group
Average 4.5 3.5 4.5 3 2 3.5
Ranking
Rank 5.5 3.5 5.5 2 1 3.5
SB BO PN ICIC HDF AXI
I B B I C S

Net NPAs 6 3 4 5 1 2 Table-6 Over all Ranking Based On The

/ Total
CAMEL Parameter
Assest(%)
SBI BOB PNB ICICI HDFC AXIS
Net NPAs 6 2 4 5 1 3
/ Capital 5 1 3 3 3 6
Net.Adv( Adequacy
%)
Asset 6 2.5 4 5 1 2.5
Average 6 2.5 4 5 1 2.5 Quality

Rank 6 2.5 4 5 1 2.5 Managem 6 3 4.5 2 4.5 1

ent

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Quality

Earning 3.5 3.5 3.5 3.5 3.5 3.5

Quality

Liquidity 5.5 3.5 5.5 2 1 3.5

Average 5.2 2.7 4.1 3.1 2.6 3.3

Rank 6 2 5 3 1 4

References;

1. Kothari CR , Research Methodology,

second Edition

2. Gupta RL, Financial Statement

Analysis,Sultan Chand & sons New
Delhi

3. Bhalla VK Financial Management and

policy,Anmol Publication New delhi

4. Justin Paul, Management of Banking

and Financial services, Second edition.

5. Gupta Amrish, Account for Managers,

third edition, Pearson Education

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ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal 14

Newest International Analyzing Financial Performance

of Selected Public Sector Banks,
Multidisciplinary Journal through CAMEL model
ISSN : 2349 - 3372
April : 2018 Year : 4 Vol : 1
Nilesh Lakhtaria(M.Com, UGC-NET)
Research Scholar, Dept. of Commerce,
Page : 14-18 SaurashtraUniversity, Rajkot

Review of Literature
Abstract
Dr.K Srinavas and L .Saroja(2013) have
Indian banking sector has public and taken two private sector bank,HDFC bankand
private sector banks providing various financial ICICI bank for the study and stated that there
services. The objective of this study is to was no significance difference between the
analyze the financial performance of two performance of the studied bank while the
leading public sector banks namely, State Bank performance of HDFC bank is stronger than
of India and Bank of Baroda using three years ICICI bank.
data and ten ratios of CAMEL Model .
Deepti Tripathi and Kishore

Key words Meghani(2014) studied the financial

performance of Axis bank and Kotak
CAMEL Model, public sector bank, Mahindra bank using CAMEL model and
financial performance concluded with t-test that there was no
significiance difference in the financial
Introduction
performance of the bank.but staced out that

Indian banking sector is playing a vital performance of Axis bank is lower .

role in current economic environment. Private Hari Krishna Karri and Kishore
sector banks are giving a healthy competition to Meghani(2015) had taken two public sector
public sector banks. Though public sector banks for study .Bank of Baroda and Punjab
banks are trying to penetrate each and every National Bank werestudied under CAMEL
corner of the nation and have been witness of model and independent sample test showed that
the economic reforms and growth of the nation. there was n significance difference in the

The CAMEL model is a indicator of financial performance of BOB and PNB

financial performance of banking industry

Objective;
having parameters like, Capital Adequacy,
Asset quality, Management efficiency, Earning The main objective of the study is to
aspect and Liquidity position. analyses the financial performance of selected

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ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal 15
SBI and BOB and to draw conclusion
according it.

Source of data:

The study is based on the secondary

data published in the annual reports of SBI and
BOB from bank website as well as RBI bulletin
and Indian banking association.

Hypotheses: Asset Quality of the bank can be rely

on the portion of Non Performing asset so
To test analyze financial performance of Gross NPA and net NPA are here.
selected banks the following hypothesis is
framed out.

Ho:- There is no significance difference

between the financial performance of
State Bank of India and Bank of Baroda
(t-Test: Two-Sample Assuming
Unequal Variances, two tail)

Plan of analyses
Management efficiency can be

The following ratios under CAMEL evaluated by advances to deposit ratio and

model are to be studied and based n T-test income generated by total employee

conclusion can be drawn out.

Data presentation and analysis

Capital Adequacy

Capital strength of bank can be judged

by CAR And Debt equity ratio

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ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal
Earning aspect is studied here with
Return on Asset and Dividend payout ratio
Liquidity suggest capital flow and
sound operation to meet current debts
liquid ratio and Govt.securities to total asset are
calculated.
Findings and conclusion.
 Both banks have maintained capital
adequacy ratio as per guidelines. debt
portion is more SBI. Here for CAR
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value of t-stat < t critic so null
hypothesis is rejected that there was no
significance difference as per capital
adequacy between SBI and BOB. While
as per Debt Equity ratio value of t-
stat>t critic so null hypothesis is
accepted that there was no significance
difference as per Debt equity between
SBI and BOB.
 In gross NPA ratio Here value of t-stat
> t critic so null hypothesis is accepted
that there was no significance
difference as per gross NPa between
SBI and BOB. While as per Net NPA
value of t-stat<t critic so null
here
hypothesis is rejected that there was no
significance difference as per net NPA
between SBI and BOB.
 Total advance to Total Deposit ratio
Here value of t-stat < t critic so null
hypothesis is rejected that there was no
significance difference as per advance
to deposit between SBI and BOB.
While as per Business per
Employeevalue of t-stat<t critic so
null hypothesis is rejected that there
was no significance difference as per
net NPA between SBI and BOB.
 Return on Asset ratio Here value of t-
stat < t critic so null hypothesis is
rejected that there was no significance
difference as per ROA between SBI and
BOB. While as per Dividend Payout
Ratio value of t-stat<t critic so null
hypothesis is rejected that there was no
ISSN : 2349 - 3372 Newest International Multidisciplinary Referred Journal 17
significance difference as Dividend international Referred Multidisciplinary
payout ratio between SBI and BOB. journal of Contemporary
research,Volume 1,Issue 2,july
 Liquid asset to total Asset ratio Here
2013(107).
value of t-stat < t critic so null
hypothesis is rejected that there was no  Deepti Tripathi and Kishore
significance difference as per liquidity Meghani(2014) “financial performance
ratio between SBI and BOB. While as of AXIS bank and KOTAK
per Government securities to Total asset MAHINDRA bank in the post reform
Ratio value of t-stat>t critic so null Era; Analysis on CAMEL model”
hypothesis is accepted that there was International journal of Business
no significance difference as Govt Quantitative Economics and Applied
securities to total asset ratio between Management Research.Volume 1,Issue
SBI and BOB. 2,July 2014(108-141)

 Hari Krishna Karri and Kishore

After considering other ratio and value Meghani(2015) “ A comparative study

it can be concluded that financial performance on financial performance of public

of BOB has an upper hand over SBI. sector banks in India: An Analysis on
CAMEL model” online at
http://mpra.ub.uni-muenchen.de/62844/

Limitation
Books
The study is carried out only for two
 Kothari CR, Research Methodology,
public sector banks with the data of three years
second Edition
.only two ratios are covered of each aspect of
C A M E L model so it might not be applicable  Gupta RL, Financial Statement

to whole public sector bank segment or for Analysis, Sultan Chand &amp; sons

drawing generalize conclusion. NewDelh

 Bhalla VK Financial Management and

policy, Anmol Publication NewDelhi
References
 Justin Paul, Management of Banking
and Financial services, Second edition.
Research Papers
 Gupta Amrish, Account for Managers,
 K.Srinivasl andSaroja(2013)
third edition, Pearson Education
“comparative financial performance of
HDFC and ICICI bank” Scholars world-
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