PERFORMANCE EVALUATION OF KOTAK BANK AND STATE BANK OF INDIA USING CAMELS MODEL

Abstract

CAMELS model is an important tool in assessing the performance of financial institutions
mainly Banks. This approach was adopted by RBI in the year 1996 following the recommendations of
Padmanabham working committee (1995). This method evaluates parameters like Capital Adequacy
ratio, Asset Quality, Management Efficiency, Earnings, Liquidity, and Sensitivity. In this study we
have selected one commercial bank and one government Bank and evaluated using CAMELS model.
The banks were ranked based on their score. The banks under the study are Kotak Mahindra Bank
and State Bank of India.