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PRESENTATION

A STUDY ON CAMEL MODEL

Guide: SATYANARAYANA REDDY .K

Student: HARSHAVARDHAN .V 1TJ11MBA33

14/04/2013

T JOHN INSTITUTE OF TECHNOLOGY

STATEMENT OF THE PROBLEM


Analysis of the financial performance is one of the major requirements for planning. Syndicate bank being a public enterprise it is very crucial to analyse its performance. The liquidity position, long term solvency, profitability and operating efficiency are the key factors that influence the survival of the company. Hence the study is undertaken to study whether the companys financial performance is sound or not. An attempt has been made to analyse the financial position of the company.
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IMPORTANT TERMINOLOGY
Bank: A bank is a financial institution and a financial intermediary
that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses.

A study on CAMEL model:


Capital adequacy: It is important for a bank to maintain depositors confidence and preventing the bank from going bankrupt. It reflects the overall financial condition of banks and also the ability of management to meet the need of additional capital.
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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. Management Efficiency: 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. Earning Quality: 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. 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.
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NEED FOR THE STUDY


The study of Financial Performance Analysis is useful to know the performance of syndicate bank it helps the investors and the company managers to understand the company present situation.

SCOPE
The study was conducted in syndicate bank. And it is confined only to the finance and accounts departments of the bank and the study has been restricted to evaluation of financial performance through camel model only.
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OBJECTIVES
1. To have an overview of the organization. 2. To understand functioning of bank. 3. To study the evaluation and performance of the bank. 4. To enable the organisation to develop strategies to improve the performance.
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METHODOLOGY
Research type: Descriptive study. Sources of data: Primary - Interviews and Discussions. Secondary-Annual Reports, Websites, Industry Reports.

Tools used:
In Capital Adequacy(C).

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Debt Equality Ratio. Advance to Assets Ratio. G-Sec to Total Investments. Capital Adequacy Ratio(CAR).
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In Asset Quality(A).
Net Assets to Total Assets. Net NPAs to Net Advances. Total Investments to Total Assets.

In Management Efficiency(M).
Total Advances to Total Deposits. Profit Per Employee. Market Value to Equity Capital.

In Earning Quality(E).
Net Profit to Total Assets. Interest Income to Total Income. Net Interest Income to Total Income. Operating Profit to Total Assets.

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In Liquidity(L).
Liquid Asset to Total Assets. G-Sec to Total Assets. Liquid Assets to Demand Deposits. Liquid Assets to Total Deposits. Approved Securities to Total Deposits. Cash Assets to Total Assets.

LIMITATIONS
1. Limited period available for study. 2. Non availability of adequate and essential information due to nature of information.
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THANK YOU

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T JOHN INSTITUTE OF TECHNOLOGY

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