Final Project

CAMELSC FRAMEWORK
During an on-site bank exam, supervisors gather private information, such as details on
problem loans, with which to evaluate a bank's financial condition and to monitor its
compliance with laws and regulatory policies. A key product of such an exam is a
supervisory rating of the bank's overall condition, commonly referred to as a CAMELSC
rating. The acronym "CAMELSC" refers to the five components of a bank's condition that
are assessed: Capital adequacy, Asset quality, Management, Earnings, and Liquidity. A sixth
component, a bank's System and control was added; hence the acronym was changed to
CAMELSC. CAMELSC is basically a ratio-based model for evaluating the performance of
banks. Various ratios forming this model are explained below:
C- Capital Adequacy:
Capital base of financial institutions facilitates depositors in forming their risk perception
about the institutions. Also, it is the key parameter for financial managers to maintain
adequate levels of capitalization. Moreover, besides absorbing unanticipated shocks, it
signals that the institution will continue to honor its obligations. The most widely used
indicator of capital adequacy is capital to risk-weighted assets ratio (CRWA). According to
Bank Supervision Regulation Committee (The Basle Committee) of Bank for International
Settlements, a minimum 9 percent CRWA is required.
Capital adequacy ultimately determines how well financial institutions can cope with
shocks to their balance sheets. Thus, it is useful to track capital-adequacy ratios that take
into account the most important financial risks—foreign exchange, credit, and interest rate
risks—by assigning risk weightings to the institution’s assets.
A sound capital base strengthens confidence of depositors. This ratio is used to protect
depositors and promote the stability and efficiency of financial systems around the world.
The following ratios measure capital adequacy:
1) Capital Risk Adequacy Ratio:
CRAR is a ratio of Capital Fund to Risk Weighted Assets. Reserve Bank of India prescribes
Banks to maintain a minimum Capital to risk-weighted Assets Ratio (CRAR) of 9 % with
regard to credit risk, market risk and operational risk on an ongoing basis, as against 8 %
prescribed in Basel documents.
Total capital includes tier-I capital and Tier-II capital. Tier-I capital includes paid up equity
capital, free reserves, intangible assets etc. Tier-II capital includes long term unsecured
loans, loss reserves, hybrid debt capital instruments etc. The higher the CRAR, the stronger
is considered a bank, as it ensures high safety against bankruptcy.
CRAR = Capital/ Total Risk Weighted Credit Exposure
TOLANI INSTITUTE OF MANAGEMENT STUDIES

2) Debt Equity Ratio:
This ratio indicates the degree of leverage of a bank. It indicates how much of the bank
business is financed through debt and how much through equity. This is calculated as the
proportion of total asset liability to net worth. ‘Outside liability’ includes total borrowing,
deposits and other liabilities. ‘Net worth’ includes equity capital and reserve and surplus.
Higher the ratio indicates less protection for the creditors and depositors in the banking
system.
Borrowings/ (Share Capital + reserves)
3) Total Advance to Total Asset Ratio:
This is the ratio of the total advanced to total asset. This ratio indicates banks
aggressiveness in lending which ultimately results in better profitability. Higher ratio of
an advance of bank deposits (assets) is preferred to a lower one. Total advances also include
receivables. The value of total assets is excluding the revolution of all the assets.
Total Advances/ Total Asset
A – Asset Quality:
Asset quality determines the healthiness of financial institutions against loss of value in the
assets. The weakening value of assets, being prime source of banking problems, directly
pour into other areas, as losses are eventually written-off against capital, which ultimately
expose the earning capacity of the institution. With this backdrop, the asset quality is
gauged in relation to the level and severity of non-performing assets, adequacy of
provisions, recoveries, distribution of assets etc. Popular indicators include nonperforming
loans to advances, loan default to total advances, and recoveries to loan default ratios.
The solvency of financial institutions typically is at risk when their assets become impaired,
so it is important to monitor indicators of the quality of their assets in terms of overexposure
to specific risks, trends in nonperforming loans, and the health and profitability of bank
borrowers— especially the corporate sector. Share of bank assets in the aggregate financial
sector assets: In most emerging markets, banking sector assets comprise well over 80 per
cent of total financial sector assets, whereas these figures are much lower in the developed
economies.
Furthermore, deposits as a share of total bank liabilities have declined since 1990 in many
developed countries, while in developing countries public deposits continue to be dominant
in banks. In India, the share of banking assets in total financial sector assets is around 75 per
cent, as of end-March 2008. There is, no doubt, merit in recognizing the importance of
diversification in the institutional and instrument-specific aspects of financial intermediation
in the interests of wider choice, competition and stability. However, the dominant role of
banks in financial intermediation in emerging economies and particularly in India will
continue in the medium-term; and the banks will continue to be “special” for a long time.
In this regard, it is useful to emphasize the dominance of banks in the developing countries
in promoting non-bank financial intermediaries and services including in development of
debt-markets. Even where role of banks is apparently diminishing in emerging markets,
substantively, they continue to play a leading role in non-banking financing activities,
including the development of financial markets. One of the indicators for asset quality is the

ratio of non-performing loans to total loans. Higher ratio is indicative of poor credit decision-
making.
NPA: Non-Performing Assets:
Advances are classified into performing and non-performing advances (NPAs) as per RBI
guidelines. NPAs are further classified into sub-standard, doubtful and loss assets based on
the criteria stipulated by RBI. An asset, including a leased asset, becomes nonperforming
when it ceases to generate income for the Bank.
An NPA is a loan or an advance where:
1. Interest and/or installment of principal remains overdue for a period of more than 90
days in respect of a term loan;
2. The account remains "out-of-order'' in respect of an Overdraft or Cash Credit
(OD/CC);
3. The bill remains overdue for a period of more than 90 days in case of bills purchased
and discounted;
4. A loan granted for short duration crops will be treated as an NPA if the installments
of principal or interest thereon remain overdue for two crop seasons; and
5. A loan granted for long duration crops will be treated as an NPA if the installments
of principal or interest thereon remain overdue for one crop season.
The Bank classifies an account as an NPA only if the interest imposed during any quarter is
not fully repaid within 90 days from the end of the relevant quarter. This is a key to the
stability of the banking sector. There should be no hesitation in stating that Indian banks
have done a remarkable job in containment of non-performing loans (NPL) considering the
overhang issues and overall difficult environment.
The following ratio is necessary to assess the asset quality.
1)Net NPA ratio:
Net NPAs reflect the performance of banks. A high level of NPAs suggests high probability
of a large number of credit defaults that affect the profitability and net-worth of banks and
also wear down the value of the asset.
Loans and advances usually represent the largest asset of most of the banks. It monitors the
quality of the Bank’s loan portfolio. The higher the ratio, the higher the credits risk.
Net NPA/ Total Loan

M – Management:
Management of financial institution is generally evaluated in terms of capital adequacy,

asset quality, earnings and profitability, liquidity and risk sensitivity ratings. In addition,
performance evaluation includes compliance with set norms, ability to plan and react to
changing circumstances, technical competence, leadership and administrative ability.
Sound management is one of the most important factors behind financial institutions’
performance. Indicators of quality of management, however, are primarily applicable to
individual institutions, and cannot be easily aggregated across the sector. Furthermore,
given the qualitative nature of management, it is difficult to judge its soundness just by
looking at financial accounts of the banks.
Nevertheless, total advance to total deposit, business per employee and profit per employee
helps in gauging the management quality of the banking institutions. Several indicators,
however, can jointly serve—as, for instance, efficiency measures do—as an indicator of
management soundness. The ratios used to evaluate management efficiency are described as
under:
1) Total Advance to Total Deposit Ratio:
This ratio measures the efficiency and ability of the banks management in converting the
deposits available with the banks (excluding other funds like equity capital, etc.) into high
earning advances. Total deposits include demand deposits, saving deposits, term deposit and
deposit of other bank. Total advances also include the receivables.
Total Advance/ Total Deposit
2) Business per Employee:
Revenue per employee is a measure of how efficiently a particular bank is utilizing its
employees. Ideally, a bank wants the highest business per employee possible, as it denotes
higher productivity. In general, rising revenue per employee is a positive sign that suggests
the bank is finding ways to squeeze more sales/revenues out of each of its employee.
Total Income/ No. of Employees.
3) Profit per Employee:
This ratio shows the surplus earned per employee. It is arrived at by dividing profit after tax
earned by the bank by the total number of employee. The higher the ratio shows good
efficiency of the management.
Profit after Tax/ No. of Employees

E – Earning & Profitability:
Earnings and profitability, the prime source of increase in capital base, is examined with
regards to interest rate policies and adequacy of provisioning. In addition, it also helps to
support present and future operations of the institutions. The single best indicator used to
gauge earning is the Return on Assets (ROA), which is net income after taxes to total asset
ratio.
Strong earnings and profitability profile of banks reflects the ability to support present and
future operations. More specifically, this determines the capacity to absorb losses, finance
its expansion, pay dividends to its shareholders, and build up an adequate level of capital.
Being front line of defense against erosion of capital base from losses, the need for high
earnings and profitability can hardly be overemphasized. Although different indicators are
used to serve the purpose, the best and most widely used indicator is Return on Assets
(ROA).
However, for in-depth analysis, another indicator Interest Income to Total Income and
Other income to Total Income is also in used. Compared with most other indicators, trends
in profitability can be more difficult to interpret—for instance, unusually high profitability
can reflect excessive risk taking. The following ratios try to assess the quality of income in
terms of income generated by core activity – income from landing operations.
1) Dividend Payout Ratio:
Dividend payout ratio shows the percentage of profit shared with the shareholders. The
more the ratio will increase the goodwill of the bank in the share market.
Dividend/ Net profit
2) Return on Asset:
Net profit to total asset indicates the efficiency of the banks in utilizing their assets in
generating profits. A higher ratio indicates the better income generating capacity of the
assets and better efficiency of management in future.
Net Profit/ Total Asset
Interest Income to Total Income:
Interest income is a basic source of revenue for banks. The interest income total income
indicates the ability of the bank in generating income from its lending. In other words, this
ratio measures the income from lending operations as a percentage of the total income
generated by the bank in a year. Interest income includes income on advances, interest on
deposits with the RBI, and dividend income.
Interest Income/ Total Income

3) Other Income to Total Income:
Fee based income account for a major portion of the bank’s other income. The bank
generates higher fee income through innovative products and adapting the technology for
sustained service levels. The higher ratio indicates increasing proportion of fee-based
income. The ratio is also influenced by gains on government securities, which fluctuates
depending on interest rate movement in the economy.
Other Income/ Total Income.
L – Liquidity:
An adequate liquidity position refers to a situation, where institution can obtain sufficient
funds, either by increasing liabilities or by converting its assets quickly at a reasonable cost.
It is, therefore, generally assessed in terms of overall assets and liability management, as
mismatching gives rise to liquidity risk. Efficient fund management refers to a situation
where a spread between rate sensitive assets (RSA) and rate sensitive liabilities (RSL) is
maintained. The most commonly used tool to evaluate interest rate exposure is the Gap
between RSA and RSL, while liquidity is gauged by liquid to total asset ratio.
Initially solvent financial institutions may be driven toward closure by poor management of
short-term liquidity. Indicators should cover funding sources and capture large maturity
mismatches. The term liquidity is used in various ways, all relating to availability of, access
to, or convertibility into cash. An institution is said to have liquidity if it can easily meet its
needs for cash either because it has cash on hand or can otherwise raise or borrow cash. A
market is said to be liquid if the instruments it trades can easily be bought or sold in
quantity with little impact on market prices. An asset is said to be liquid if the market for
that asset is liquid.
The common theme in all three contexts is cash. A corporation is liquid if it has ready
access to cash. A market is liquid if participants can easily convert positions into cash— or
conversely. An asset is liquid if it can easily be converted to cash.
The liquidity of an institution depends on:

1) The institution's short-term need for cash;
2) Cash on hand;
3) Available lines of credit;
4) The liquidity of the institution's assets;
5) The institution's reputation in the marketplace—how willing will counterparty is to
transact trades with or lend to the institution.
The ratios suggested to measure liquidity under CAMELSC Model are as follows:

1) Liquidity Asset to Total Asset:
Liquidity for a bank means the ability to meet its financial obligations as they come
due. Bank lending finances investments in relatively illiquid assets, but it fund its loans
with mostly short term liabilities. Thus one of the main challenges to a bank is ensuring its
own liquidity under all reasonable conditions. Liquid assets include cash in hand, balance
with the RBI, balance with other banks (both in India and abroad), and money at call and
short notice. Total asset include the revaluations of all the assets. The proportion of liquid
asset to total asset indicates the overall liquidity position of the bank.
Liquidity Asset/ Total Asset
Liquidity Asset to Demand Deposit:
This ratio measures the ability of a bank to meet the demand from deposits in a particular
year. Demand deposits offer high liquidity to the depositor and hence banks have to invest
these assets in a highly liquid form.
Liquidity Asset/ demand Deposit
Liquidity Asset to Total Deposit:
This ratio measures the liquidity available to the deposits of a bank. Total deposits include
demand deposits, savings deposits, term deposits and deposits of other financial institutions.
Liquid assets include cash in hand, balance with the RBI, balance with other banks (both in
India and abroad), and money at call and short notice.
Liquidity Asset/ Total Deposit
S and C- System and control
Every business especially banks have to undergo internal control and general audit from time
to time. It is the responsibility of the banking entity and its directors to ensure that it has
complete and true accounting and related records. The fundamentals of internal control and
audit are needed for the well-being of the banking organization, safeguarding its assets, to
prepare financial statements and to comply with legislation. In this article we will hence deal
with the basic of internal control and audit for banks:
It is a known fact that your accounting system will be rendered useless and inadequate if it
does not have a system of appropriate internal controls. The fundamental objective of a
business also makes it the responsibility of the management to implement proper control
system. The management has to make sure that all important transactions of the banks are
properly recorded. Errors and irregularities which become apparent while processing
information should be thus easily removed due to the control and audit system. It also helps

to make sure that the assets and liabilities which are shown in the books, actually exists and
are correctly recorded.
Internal control for a bank is broadly classified into two: primary control and secondary
control. Primary control is related to the prevention of errors and irregularities. Now if an
error and irregularity is evident, primary control has to detect the same. Primary controls are
thus very important for banking activities. Secondary control on the other hand is related to
management’s review and scrutiny of budgets, accounts and other financial information. It
deals also with transactions and balances and the use of analytical techniques. Secondary
control activities are very similar to that used by auditors and inspectors in business.
Apart from control, another activity which is important for a business is the – Internal audit.
Internal audit or simply inspections are important part of banking system. They form a part of
the control, system used in banks. Internal audit usually deal with operational elements such
as granting of loans, checking loan procedures etc. These days internal audit also cover all
transactions and review of internal control. How frequent internal audit should be done,
depends on the management. If they think that the business deals with sufficient risky
activities, internal audits become a usual activity.

LITERATURE REVIEW
1) EVALUATING PERFORMANCE OF BANKS THROUGH CAMEL MODEL:- A
CASE STUDY OF SBI AND ICICI(B S Bodla and Richa Verma)
The objectives of the study were To describe the CAMEL Model of rating banking
institutions so as to catch up the comparative performance of various banks and To
study the performance of these 2 banks (SBI and ICICI) and to move in direction with
the Indian banking association report “Banking industry vision 2010” that some of the
Indian banks would become the global players in coming years.
And the study shows that the investment policy of SBI is more conservative in
comparison to ICICI bank. Also, ICICI has succeeded in maintaining higher level of
management efficiency then SBI. On the whole, ICICI bank has performed better than
SBI.
2) A CAMEL Model assessment of old private sector banks in India(Roji George)
The objective of the study was to examine performance and financial health of old
sector private banks of India in the context of new regulation and stiff competition.
And the result of overall ranks of the selected banks indicate that Federal bank is the
best bank, followed by Karur vysya bank ltd(KVB), South Indian bank, Jammu and
Kashmir bankand ING vysya bank in order.
3) PERFORMANCE ASSESSMENT OF BANKS USING CAMELS FRAMEWORK

(Vipin Benry & Thomas Paul Kattokaran)
The objective of the study was to understand the relevance of CAMELs model in
assessing performance of banks.
And by analyzing the data, it was found that both the banks are fundamentally sound
but with moderate weakness in regard to one or more component of CAMELS’. the
Dhanalakshmi Bank leads in capital adequacy, asset quality, liquidity whereas south
Indian bank leads in rest of the parameters. Overall the performance of Dhanalakshmi
Bank is comparatively better than that of south Indian bank.
4) AWARENESS AND PERCEPTION OF CAMEL RATING ACROSS BANKS:

SOME SURVEY EVIDENCE(Manish Mittal And Arun Dave)
The objective of the study was to find out the awareness level as well as perception
among bank employees about CAMEL rating and the efforts made by them for
improving the ratings of their banks.

And the study reveals that there are significant differences among the employees of
the banks belonging to the different sector, regarding their awareness and perception
about the camel rating. The foreign bank employees are highly aware of the rating
system and so they have positive perception for the same. on the contrary private
sector bank employees are least aware of the rating system and the public bank lie in
between.
5) CAMEL analysis, prudential regulation and banking system soundness in Nigeria

(Adolphus j toby)
The objectives of the study were to select financial indicators and their prudential
implication for banking system soundness in Nigeria and to study a preference for
highly profitable money and capital market instruments and thereby curtailing credit
to the economy.
And the empirical evidence in this study shows that the Nigerian banks preference for
improved liquidity does not actually enhance the loan to deposit ratio. The weak and
insignificant correlation between the ratio of loan-to-total assets and bank profitability
measures confirm the declining impact of the bank loans portfolio. Although positive
and significant relationship between capital adequacy and bank solvency justifies
current regulatory intervention in the form of increase capital requirement.
6) FINANCIAL SOUNDNESS OF OLD PRIVATE SECTOR BANKS (OPBS) IN

INDIA AND BENCHMARKING THE KERALA BASED (OPBS): A ‘CAMEL’
APPROACH (Manoj P K)
The objectives of the study were to make a comparative analysis of the financial
soundness of old private sector banks(OPBs) in India for the ten years period (FY
2000 to 2009) using CAMEL model, to benchmark the relative position of Kerala
based OPBs (KOPBs) in respect of financial soundness with other OPBs in India and
to draw broad conclusions regarding the relative financial position of individual
KOPBs and accordingly to suggest appropriate strategies for their enhanced
competitiveness.
And It is quite clear from the conclusion that all the KOPBs are lagging behind the
‘Best in Class’ in financial soundness. Only one KOPB has got financial soundness
that is comparable with even the national average. This indicates that the other three
KOPBs have to struggle hard for their survival and growth.

INTRODUCTION TO BANKS
State Bank of India
Founded- 1st July 1955
Headquarters- Mumbai, Maharashtra, India
Products - Investment Banking

Consumer Banking
Commercial Banking
Retail Banking
Private Banking
Asset Management
Pensions
Mortgages
Credit Cards
State Bank of India (SBI) is the largest state-owned banking and financial services
company in India. The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank
in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks,
Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became
State Bank of India. The government of India nationalized the Imperial Bank of India in
1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of
India. In 2008, the government took over the stake held by the Reserve Bank of India.
SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group,
with over 16,000 branches, has the largest banking branch network in India. It’s also
considered as the best bank even abroad ,having around 130 branches overseas [including 1
ADB]and one of the largest financial institution in the world . With an asset base of $352
billion and $285 billion in deposits, it is a regional banking behemoth. It has a market share
among Indian commercial banks of about 20% in deposits and advances, and SBI accounts
for almost one-fifth of the nation's loans.
The State Bank of India is the 29th most reputed company in the world according to Forbes.
Also SBI is the only bank to get featured in the coveted "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010.
The State Bank of India is the largest of the Big Four Banks of India, along with ICICI Bank,
Punjab National Bank and Canara Bank — its main competitors. and" GUINNESS BOOK
OF WORLD RECORD " that 56 million transactions happening per day all over the world is
definitely an achievement

IDBI Bank
Founded- July 1964
Headquarters- Mumbai, India
Products- Finance and insurance
The Industrial Development Bank of India Limited (IDBI) is one of India's leading public
sector banks and 4th largest Bank in overall ratings. RBI categorized IDBI as an "other public
sector bank". It was established in 1964 by an Act of Parliament to provide credit and other
facilities for the development of the fledgling Indian industry. [2] It is currently 10th largest
development bank in the world in terms of reach with 1300 ATMs, 758 branches and 513
centers.[3] Some of the institutions built by IDBI are the National Stock Exchange of India
(NSE), the National Securities Depository Services Ltd (NSDL), the Stock Holding
Corporation of India (SHCIL), the Credit Analysis & Research Ltd, the Export-Import Bank
of India(Exim Bank), the Small Industries Development Bank of India(SIDBI), the
Entrepreneurship Development Institute of India, and IDBI BANK, which today is owned by
the Indian Government, though for a brief period it was a private scheduled bank.
IDBI has played a pioneering role, particularly in the pre-reform era (1964–91),in catalyzing
broad based industrial development in the country in keeping with its Government-
ordained ‘development banking’ charter. In pursuance of this mandate, IDBI’s activities
transcended the confines of pure long-term lending to industry and encompassed, among
others, balanced industrial growth through development of backward areas, modernization
of specific industries, employment generation, entrepreneurship development along with
support services for creating a deep and vibrant domestic capital market, including
development of apposite institutional framework.

Punjab National Bank
Founded-Lahore (1895)
Headquarters-New Delhi, India
Products-Investment Banking
Consumer Banking
Commercial Banking
Retail Banking
Private Banking
Asset Management
Pensions
Mortgage loans
Credit Cards
Life insurance
Punjab National Bank (PNB) is the third largest bank in India. It was registered on May 19,
1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. Today, the
Bank is the second largest state owned commercial bank in India with about 5000 branches
across 764 cities. It serves over 37 million customers. The bank has been ranked 248th
biggest bank in the world by the Bankers Almanac, London. The bank's total assets for
financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as
well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty,
Dubai, Oslo, and Shanghai.
Punjab National Bank is one of the Big Four Banks of India, along with ICICI Bank, State
Bank of India and Canara Bank .

Bank of Baroda
Founded-1908
Headquarters- Bank of Baroda,

Baroda Corporate Centre,
Plot No - C-26, G - Block,
Bandra Kurla Complex,
Mumbai India
Products-Finance and insurance

Consumer banking
Corporate banking
Investment banking
Investment management
Private banking
Private equity
Mortgages
Credit cards
Bank of Baroda (BOB) is the third largest bank in India, after the State Bank of India and the
Punjab National Bank and ahead of ICICI Bank. BOB has total assets in excess of Rs. 2.27
lakh crores, or Rs. 2,274 billion, a network of over 3,000 branches and offices, and about
1,100 ATMs. IT plans to open 400 new branches in the coming year. It offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, credit cards and asset management. Its total business was Rs. 4,402
billion as of June 30.
As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number
should climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth
branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides
branches, BOB plans to open three outlets in the Persian Gulf region that will consist of
ATMs with a couple of people.
The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in
the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial
banks of India, was nationalized on 19 July 1969, by the government of India.

Bank of India
Founded-1906
Headquarters-Mumbai, India
Products-Commercial Banking
Retail Banking
Private Banking
Asset Management
Mortgages
Credit Cards
Bank of India (BOI) is a state-owned commercial bank with headquarters in Mumbai.

Government-owned since nationalization in 1969, it is India's 4th largest bank, after State
Bank of India, Punjab National Bank and Bank of Baroda. It has 3374 branches, including 27
branches outside India. BOI is a founder member of SWIFT (Society for Worldwide Inter
Bank Financial Telecommunications), which facilitates provision of cost-effective financial
processing and communication services. The Bank completed its first one hundred years of
operations on 7 September 2006.

OBJECTIVE OF THE PROJECT
Primary objective
To study the strength of using CAMELSC model framework as a tool of performance

evaluation for banking institutions.
Secondary objective: -
1) To evaluate financial performance of the banks.

2) To describe CAMELSC model of ranking, banking institutions, so as to analyze the
comparison of various banks.

METHODOLOGY
DATA COLLECTION
Primary Data:- Performance indicators of banks
Source: - Banks
Data collection: - Face to face interaction with employees of the bank.
Secondary Data: - Literature review, ratio analysis and interpretation.
Source: -Journals, internet, banks annual reports and banks prospectus.

DATA INTER PRETATION
1) Capital Adequacy:
Capital Risk Adequacy Ratio:
CRAR =Capital/Total Risk Weighted Credit Exposure
Year SBI BOB BOI PNB IDBI AVG

2006 11.88 13.65 10.75 11.95 14.8 12.606
2007 12.34 11.8 11.75 12.29 13.73 12.382
2008 13.47 12.94 12.04 13.46 11.95 12.772
2009 14.25 14.05 13.01 14.03 11.57 13.382
2010 13.39 14.36 12.94 14.16 11.31 13.232
AVG 13.066 13.36 12.098 13.178 12.672 12.8748
RANK 3 1 5 2 4
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 2 4 6 8 10 12 14 16

Debt-Equity Ratio:
Debt-Equity Ratio =Borrowings/Share Capital + Reserves
Year SBI BOB BOI PNB IDBI AVg

2006 111 61.22 118.26 71.32 74.59 87.278
2007 127 13.21 112.31 18.68 510.9 156.42
2008 105 35.56 67.74 44.22 437.6 138.024
2009 93 43.91 70.3 29.86 471.3 141.674
2010 156 88.37 157.41 108.67 469.4 195.97
143.873
AVG 118.4 48.454 105.204 54.55 392.758 2
RANK 2 5 3 4 1
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 100 200 300 400 500 600

Total Advance to Total Asset Ratio:
Total Advance to Total Asset Ratio =Total Advance/Total Asset
Year SBI BOB BOI PNB IDBI Avg

2006 53 52.84 58.05 51.37 59.55 54.962
2007 60 58.42 59.97 59.47 60.16 59.604
2008 58 59.41 63.45 60 62.9 60.752
2009 56 63.32 63.37 62.65 60 61.068
2010 60 62.89 61.28 62.9 59.17 61.248
AVG 57.4 59.376 61.224 59.278 60.356 59.5268
RANK 5 3 1 4 2
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 10 20 30 40 50 60 70

6.1.2)
Net NPA ratio:
Net NPA= Net NPA/Total Loan

2006 1.88 0.87 1.49 0.29 1.01 1.108
2007 1.56 0.6 0.52 0.64 1.12 0.888
2008 1.78 0.47 0.52 0.64 1.3 0.942
2009 1.79 0.31 0.44 0.17 0.92 0.726
2010 1.72 0.34 1.31 0.53 1.02 0.984
AVG 1.746 0.518 0.856 0.454 1.074 0.9296
1 4 3 5 2
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

Management Quality
Total Advance to Total Deposit Ratio:
Total Advance to Total Deposit = Total Advance/Total Deposit

2006 68.84 63.97 69.38 62.35 59.55 64.818
2007 77.45 66.94 71 69.01 60.16 68.912
2008 77.55 70.18 75.64 71.79 62.9 71.612
2009 73.11 74.84 75.33 73.75 59.17 71.24
2010 78.58 72.62 73.33 74.84 60 71.874
AVG 75.106 69.71 72.936 70.348 60.356 69.6912
RANK 1 4 2 3 5
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 10 20 30 40 50 60 70 80 90
Business per Employee:

Business per Employee = Total Income/No. of Employees

2006 2.99 3.96 3.81 3.3 17.18 6.248
2007 3.57 5.55 4.98 4.07 13.87 6.408
2008 4.56 7.1 6.52 5.04 18.09 8.262
2009 5.56 9.14 8.33 6.54 20.3 9.974
2010 6.36 9.81 10.11 8.07 24.17 11.704
AVG 4.608 7.112 6.75 5.404 18.722 8.5192
RANK 5 2 3 4 1
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 5 10 15 20 25 30
Profit per Employee:

Profit per Employee = Net Profit/No. of Employees

2006 2.17 2.13 1.66 2.48 12.45 4.178
2007 2.37 2.73 2.71 2.68 8.44 3.786
2008 3.73 3.94 4.95 3.66 8.86 5.028
2009 4.74 6.05 7.49 5.64 8.42 6.468
2010 4.46 8 4.39 7.31 8.44 6.52
AVG 3.494 4.57 4.24 4.354 9.322 5.196
RANK 5 2 4 3 1
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 2 4 6 8 10 12 14

Earnings Quality:
Dividend Payout Ratio:
Dividend Payout Ratio= Dividend/Net Profit

2006 19.06 25.11 23.76 14.98 22.07 20.996
2007 18.98 24.59 17.51 30.71 20.16 22.39
2008 22.64 23.75 12.23 23.4 22.92 20.988
2009 22.9 17.22 16.34 23.86 24.69 21.002
2010 23.36 20.9 24.61 20.74 24.14 22.75
AVG 21.388 22.314 18.89 22.738 22.796 21.6252
RANK 4 3 5 2 1
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 5 10 15 20 25 30 35
Return on Asset:

Return on Asset = Net Profit/Total Asset

2006 0.89 0.79 0.68 1.09 0.68 0.826
2007 0.84 0.8 0.89 1.03 0.67 0.846
2008 1.01 0.89 1.26 1.15 0.67 0.996
2009 1.04 1.09 1.5 1.39 0.62 1.128
2010 0.88 1.21 0.7 1.44 0.53 0.952
AVG 4.66 4.78 5.03 6.1 3.17 4.748
RANK 4 3 2 1 5
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6
Interest Income to Total Income:

Interest Income to Total Income = Interest Income/Total Income

2006 83 85.63 86 87 80.78 84.482
2007 84 86.96 85 90 85.84 86.36
2008 84 85.21 85 88 82.08 84.858
2009 83 84.55 84 87 88.74 85.458
2010 83 85.61 87 86 86.7 85.662
AVG 83.4 85.592 85.4 87.6 84.828 85.364
RANK 5 2 3 1 4
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
76 78 80 82 84 86 88 90 92
Other Income to Total Income:

Other Income to Total Income = Other than Interest Income/Total Income

2006 36 14.37 14.42 13.3 19.22 19.462
2007 22.5 13.04 15 15.2 14.16 15.98
2008 15.6 14.79 15 14.3 17.92 15.522
2009 11.18 15.45 16 24.6 11.26 15.698
2010 12.1 14.39 13 17.5 13.3 14.058
AVG 19.476 14.408 14.684 16.98 15.172 16.144
RANK 1 5 4 2 3
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 5 10 15 20 25 30 35 40
6.1.5) Liquidity:

Liquidity Asset to Total Asset: Liquidity Asset/Total Asset

2006 9.02 11.87 10.9 17 6.05 10.968
2007 9.17 12.77 12.27 9 6.66 9.974
2008 9.35 12.42 9.9 9 6.7 9.474
2009 10.83 10.59 9.65 11.38 6.51 9.792
2010 9.13 12.74 11.36 8 6.24 9.494
AVG 9.5 12.078 10.816 10.876 6.432 9.9404
RANK 4 1 3 2 5
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 2 4 6 8 10 12 14 16 18
Liquidity Asset to Total Deposit:

Liquidity Asset to Total Deposit =Liquidity Asset/Total Deposit

2006 12 14.37 12 20 20.63 15.8
2007 20 14.63 15 11.2 15.94 15.354
2008 13 14.67 12 11.3 11.2 12.434
2009 14 12.52 11 10.2 9.98 11.54
2010 12 14.71 14 9.41 8.7 11.764
AVG 14.2 14.18 12.8 12.422 13.29 13.3784
RANK 1 2 4 5 3
2009-2010
2008-2009
IDBI
2007-2008 PNB
BOI
BOB
SBI
2006-2007
2005-2006
0 5 10 15 20 25

Analysis
H1- The financial performance of SBI is slightly greater than other 4 banks
H2- The financial performance of each of the 4 banks (other than SBI) is greater than the average
performance of top 5 banks
H3- The financial performance of SBI is slightly greater than average performance of top 5
nationalized banks in India.
CRAR
t-Test: Paired Two Sample for Means
SBI BOB
Mean 13.066 13.36
Variance 0.90093 1.04255
Observations 5 5
Pearson Correlation 0.453977187
Hypothesized Mean
Difference 0
df 4
t Stat -0.637466637
P(T<=t) one-tail 0.279240937
t Critical one-tail 2.131846782
P(T<=t) two-tail 0.558481873
t Critical two-tail 2.776445105
As p (cal) is greater than p (tab) so we accept the null hypothesis
Debt equity ratio

SBI BOB
Mean 118.4 48.454
796.325
Variance 591.8 1
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat 5.943917394
P(T<=t) one-tail 0.002009196
P(T<=t) two-tail 0.004018393

As p (cal) is greater than p (tab) so we reject the null hypothesis
Total advance to total asset ratio

SBI BOB
Mean 57.4 59.376
17.8844
Variance 8.8 3
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -1.290075051
P(T<=t) one-tail 0.133276723
P(T<=t) two-tail 0.266553445
Total advance to total deposits

SBI BOB
Mean 75.106 69.71
Variance 16.69573 18.9066
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat 2.674298426
P(T<=t) one-tail 0.027778474
P(T<=t) two-tail 0.055556947
As p (cal) is greater than p (tab) so we acceptthe null hypothesis

Dividend payout ratio
SBI BOB
Mean 21.388 22.314
10.7520
Variance 4.74012 3
Observations 5 5
Pearson Correlation -0.724269505
Hypothesized Mean
Difference 0
df 4
t Stat -0.407385712
P(T<=t) one-tail 0.352292146
P(T<=t) two-tail 0.704584292
Return on assets
SBI BOB
Mean 0.932 0.956
Variance 0.00767 0.03468
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -0.292639408
P(T<=t) one-tail 0.392175086
P(T<=t) two-tail 0.784350173
Other income to total income

SBI BOB
Mean 19.476 14.408
Variance 105.10988 0.77622
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat 1.064815765
P(T<=t) one-tail 0.173483724
P(T<=t) two-tail 0.346967448
Interest income to total income

SBI BOB
Mean 83.4 85.592
Variance 0.3 0.77622
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -6.418142387
P(T<=t) one-tail 0.001514515
P(T<=t) two-tail 0.00302903
Liquid assets to total assets

SBI BOB

Mean 9.5 12.078
Variance 0.5669 0.82287
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -3.580783506
P(T<=t) one-tail 0.011575737
P(T<=t) two-tail 0.023151473
Liquid assets to total deposits

SBI BOB
Mean 14.2 14.18
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat 0.013077875
P(T<=t) one-tail 0.495095972
P(T<=t) two-tail 0.990191944
Business per employee

SBI BOB
Mean 4.608 7.112
Variance 1.91837 5.94177

Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -5.17543197
P(T<=t) one-tail 0.003313565
P(T<=t) two-tail 0.00662713
Profit per employee

SBI BOB
Mean 3.494 4.57
Variance 1.38943 5.92285
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -1.637639213
P(T<=t) one-tail 0.088419443
P(T<=t) two-tail 0.176838886
Net npa ratio

SBI BOB
Mean 1.746 0.518
Variance 0.01408 0.05197
Observations 5 5

Hypothesized Mean
Difference 0
df 4
t Stat 11.90830745
P(T<=t) one-tail 0.000142421
P(T<=t) two-tail 0.000284843
As p (cal) is greater than p (tab) so we rejectthe null hypothesis
Sbi and boi
CRAR
SBI BOI
Mean 13.066 12.098
Variance 0.90093 0.87057
Observations 5 5
Hypothesized Mean Difference 0
df 4
t Stat 5.084605893
P(T<=t) one-tail 0.003528991
P(T<=t) two-tail 0.007057981
Debt equity ratio

SBI BOI
Mean 118.4 105.204
Variance 591.8 1392.06533
Observations 5 5

df 4
t Stat 1.634615305
P(T<=t) one-tail 0.088734443
P(T<=t) two-tail 0.177468887
Total advance to total asset

ratio
SBI BOI
Mean 57.4 61.224
Observations 5 5
df 4
t Stat -2.77253191
P(T<=t) one-tail 0.025100335
P(T<=t) two-tail 0.050200671

SBI BOI
Mean 75.106 72.936
Variance 16.69573 7.39783
Observations 5 5
df 4
t Stat 1.314685603
P(T<=t) one-tail 0.129462983

P(T<=t) two-tail 0.258925967

SBI BOI
Mean 21.388 18.89
Variance 4.74012 27.29945
Observations 5 5
df 4
t Stat 0.924503536
P(T<=t) one-tail 0.203774149
P(T<=t) two-tail 0.407548298
Return on assets
SBI BOI
Mean 0.932 1.006
Variance 0.00767 0.13048
Observations 5 5
df 4
t Stat -0.579861807
P(T<=t) one-tail 0.296550707
P(T<=t) two-tail 0.593101415

SBI BOI
Mean 19.476 14.684
Variance 105.10988 1.20928
Observations 5 5
df 4
t Stat 1.031632612
P(T<=t) one-tail 0.180267077
P(T<=t) two-tail 0.360534154

SBI BOI
Mean 83.4 85.4
Variance 0.3 1.3
Observations 5 5
df 4
t Stat -3.16227766
P(T<=t) one-tail 0.017054712
P(T<=t) two-tail 0.034109423

SBI BOI

Mean 9.5 10.816
Variance 0.5669 1.15393
Observations 5 5
df 4
t Stat -1.762286822
P(T<=t) one-tail 0.076404224
P(T<=t) two-tail 0.152808449

SBI BOI
Mean 14.2 12.8
Variance 11.2 2.7
Observations 5 5
df 4
t Stat 1.158648244
P(T<=t) one-tail 0.155530384
P(T<=t) two-tail 0.311060767

SBI BOI
Mean 4.608 6.75
Variance 1.91837 6.40385
Observations 5 5
df 4

t Stat -4.1622925
P(T<=t) one-tail 0.007059474
P(T<=t) two-tail 0.014118947
Profit per employee

SBI BOI
Mean 3.494 4.24
Variance 1.38943 5.0216
Observations 5 5
df 4
t Stat -1.293833142
P(T<=t) one-tail 0.132687398
P(T<=t) two-tail 0.265374795
Net npa ratio

SBI BOI
Mean 1.746 0.856
Variance 0.01408 0.25173
Observations 5 5
df 4
t Stat 4.313583225
P(T<=t) one-tail 0.006255295
P(T<=t) two-tail 0.01251059

Sbi and pnb
CRAR
SBI PNB
Mean 13.066 13.178
Variance 0.90093 1.01657
Observations 5 5
df 4
t Stat -0.654266328
P(T<=t) one-tail 0.274324768
P(T<=t) two-tail 0.548649535
Debt equity ratio

SBI PNB
Mean 118.4 54.55
Variance 591.8 1303.2923
Observations 5 5
df 4
t Stat 5.353830214
P(T<=t) one-tail 0.002935271
P(T<=t) two-tail 0.005870543


SBI PNB
Mean 57.4 59.278
Variance 8.8 21.89597
Observations 5 5
df 4
t Stat -1.296933491
P(T<=t) one-tail 0.132203114
P(T<=t) two-tail 0.264406227

SBI PNB
Mean 75.106 70.348
Variance 16.69573 24.89732
Observations 5 5
df 4
t Stat 3.079767125
P(T<=t) one-tail 0.018469983
P(T<=t) two-tail 0.036939966

SBI PNB
Mean 21.388 22.738
Variance 4.74012 32.35712
Observations 5 5

df 4
t Stat -0.48731318
P(T<=t) one-tail 0.325768639
P(T<=t) two-tail 0.651537278
Return on assets
SBI PNB
Mean 0.932 1.22
Variance 0.00767 0.0338
Observations 5 5
df 4
t Stat -3.764143128
P(T<=t) one-tail 0.009852033
P(T<=t) two-tail 0.019704066

SBI PNB
Mean 19.476 16.98
Variance 105.10988 20.557
Observations 5 5
df 4
t Stat 0.408037014
P(T<=t) one-tail 0.352071546
P(T<=t) two-tail 0.704143092


SBI PNB
Mean 83.4 87.6
Variance 0.3 2.3
Observations 5 5
df 4
t Stat -8.5732141
P(T<=t) one-tail 0.000508331
P(T<=t) two-tail 0.001016663

SBI PNB
Mean 9.5 10.876
Variance 0.5669 13.26688
Observations 5 5
df 4
t Stat -0.822726397
P(T<=t) one-tail 0.228440649
P(T<=t) two-tail 0.456881299

SBI PNB
Mean 14.2 12.422
Variance 11.2 18.54692
Observations 5 5
df 4
t Stat 0.649945495
P(T<=t) one-tail 0.275583421
P(T<=t) two-tail 0.551166841

SBI PNB
Mean 4.608 5.404
Variance 1.91837 3.68423
Observations 5 5
df 4
t Stat -3.130705663
P(T<=t) one-tail 0.017580656
P(T<=t) two-tail 0.035161313
Profit per employee

SBI PNB

Mean 3.494 4.354
Variance 1.38943 4.29688
Observations 5 5
df 4
t Stat -1.650249308
P(T<=t) one-tail 0.087118366
P(T<=t) two-tail 0.174236733
Net npa ratio

SBI PNB
Mean 1.746 0.454
Variance 0.01408 0.04563
Observations 5 5
df 4
t Stat 9.521128888
P(T<=t) one-tail 0.000339692
P(T<=t) two-tail 0.000679384
Sbi and idbi
CRAR

SBI IDBI
Mean 13.066 12.672
Variance 0.90093 2.30962
Observations 5 5
df 4
t Stat 0.363465542
P(T<=t) one-tail 0.367326063
P(T<=t) two-tail 0.734652126
Debt equity ratio

SBI IDBI
Mean 118.4 392.758
Variance 591.8 32310.51382
Observations 5 5
df 4
t Stat -3.480191113
P(T<=t) one-tail 0.012673793
P(T<=t) two-tail 0.025347586
Total advance to total asset

ratio
SBI IDBI
Mean 57.4 60.356
Observations 5 5

df 4
t Stat -2.09184725
P(T<=t) one-tail 0.052306053
P(T<=t) two-tail 0.104612107

SBI IDBI
Mean 75.106 60.356
Variance 16.69573 2.17333
Observations 5 5
df 4
t Stat 9.183109066
P(T<=t) one-tail 0.000390469
P(T<=t) two-tail 0.000780937

SBI IDBI
Mean 21.388 22.796
Variance 4.74012 3.22113
Observations 5 5
df 4
t Stat -2.991319879
P(T<=t) one-tail 0.020142785
P(T<=t) two-tail 0.04028557

Return on assets
SBI IDBI
Mean 0.932 0.634
Variance 0.00767 0.00393
Observations 5 5
df 4
t Stat 6.391260132
P(T<=t) one-tail 0.001538236
P(T<=t) two-tail 0.003076472

SBI IDBI
Mean 19.476 15.172
Variance 105.10988 10.94252
Observations 5 5
df 4
t Stat 1.181662607
P(T<=t) one-tail 0.151396099
P(T<=t) two-tail 0.302792198

SBI IDBI
Mean 83.4 84.828
Variance 0.3 10.94252
Observations 5 5
df 4
t Stat -0.917554383
P(T<=t) one-tail 0.205385317
P(T<=t) two-tail 0.410770634

SBI IDBI
Mean 9.5 6.432
Variance 0.5669 0.07817
Observations 5 5
df 4
t Stat 9.47961671
P(T<=t) one-tail 0.000345467
P(T<=t) two-tail 0.000690935

SBI IDBI
Mean 14.2 13.29
Variance 11.2 24.3226

Observations 5 5
df 4
t Stat 0.376061313
P(T<=t) one-tail 0.362983344
P(T<=t) two-tail 0.725966688

SBI IDBI
Mean 4.608 18.722
Variance 1.91837 14.62247
Observations 5 5
df 4
t Stat -11.73202373
P(T<=t) one-tail 0.000150967
P(T<=t) two-tail 0.000301934
Profit per employee

SBI IDBI
Mean 3.494 9.322
Variance 1.38943 3.09182
Observations 5 5
df 4
t Stat -4.891172647

P(T<=t) one-tail 0.004047606
P(T<=t) two-tail 0.008095212
Net npa ratio

SBI IDBI
Mean 1.746 1.074
Variance 0.01408 0.02098
Observations 5 5
df 4
t Stat 7.291437285
P(T<=t) one-tail 0.000940333
P(T<=t) two-tail 0.001880667
Bob and avg(h2)
CRAR
BOB Avg
Mean 13.36 12.8748
0.17762
Variance 1.04255 9
Observations 5 5

3
Hypothesized Mean
Difference 0
df 4
1.53495
t Stat 2
0.09979
P(T<=t) one-tail 4
2.13184
t Critical one-tail 7
0.19958
P(T<=t) two-tail 8
2.77644
t Critical two-tail 5
Debt equity ratio

BOB Avg
143.873
Mean 48.454 2
796.325 1528.39
Variance 1 1
Observations 5 5
0.22665
Pearson Correlation 8
Hypothesized Mean
Difference 0
df 4
t Stat -4.995
0.00375
P(T<=t) one-tail 8
2.13184
0.00751
P(T<=t) two-tail 7
2.77644


BOB Avg
Mean 59.376 59.5268
17.8844 6.92057
Variance 3 5
Observations 5 5
0.94223
Hypothesized Mean
Difference 0
df 4
t Stat -0.17208
0.43586
P(T<=t) one-tail 6
2.13184
0.87173
P(T<=t) two-tail 1
2.77644

BOB Avg
Mean 69.71 69.6912
8.80202
Variance 18.9066 5
Observations 5 5
0.87848
Hypothesized Mean
Difference 0
df 4
0.01871
t Stat 9
0.49298
P(T<=t) one-tail 1
2.13184
0.98596
P(T<=t) two-tail 2
2.77644

BOB Avg
Mean 22.314 21.6252
10.7520 0.76009
Variance 3 7
Observations 5 5
0.05688
Hypothesized Mean
Difference 0
df 4
0.46049
t Stat 4
0.33454
P(T<=t) one-tail 2
2.13184
0.66908
P(T<=t) two-tail 4
2.77644
Return on assets
BOB AVG
Mean 0.956 0.9496
0.01499
Variance 0.03468 9
Observations 5 5
0.63721
Hypothesized Mean
Difference 0
df 4
0.09967
t Stat 7
0.46269
P(T<=t) one-tail 8

2.13184
0.92539
P(T<=t) two-tail 6
2.77644

BOB AVG
Mean 14.408 16.144
3.99330
Variance 0.77622 4
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -1.72691
0.07962
P(T<=t) one-tail 9
2.13184
0.15925
P(T<=t) two-tail 7
2.77644

BOB AVG
Mean 85.592 85.364
0.53090
Variance 0.77622 4
Observations 5 5
0.55678
Hypothesized Mean 0

Difference
df 4
0.66246
t Stat 4
0.27194
P(T<=t) one-tail 8
2.13184
0.54389
P(T<=t) two-tail 6
2.77644

BOB AVG
Mean 12.078 9.9404
0.37397
Variance 0.82287 9
Observations 5 5
Hypothesized Mean
Difference 0
df 4
4.02648
t Stat 1
P(T<=t) one-tail 0.00789
2.13184
0.01577
P(T<=t) two-tail 9
2.77644


BOB AVG
Mean 14.18 13.3784
4.16125
Variance 0.8788 9
Observations 5 5
0.40297
Hypothesized Mean
Difference 0
df 4
0.95825
t Stat 7
0.19609
P(T<=t) one-tail 9
2.13184
0.39219
P(T<=t) two-tail 8
2.77644

BOB AVG
Mean 7.112 8.5192
5.48526
Variance 5.94177 5
Observations 5 5
0.96350
Hypothesized Mean
Difference 0
df 4
t Stat -4.82228
0.00425
P(T<=t) one-tail 4
2.13184
0.00850
P(T<=t) two-tail 9
2.77644

Profit per employee

BOB AVG
Mean 4.57 5.196
1.60590
Variance 5.92285 2
Observations 5 5
0.94096
Hypothesized Mean
Difference 0
df 4
t Stat -1.06586
0.17327
P(T<=t) one-tail 5
2.13184
P(T<=t) two-tail 0.34655
2.77644
Net Npa ratio

BOB AVG
Mean 0.518 0.9296
0.01953
Variance 0.05197 1
Observations 5 5
0.71765
Hypothesized Mean
Difference 0
df 4

t Stat -5.73297
0.00229
P(T<=t) one-tail 2
2.13184
0.00458
P(T<=t) two-tail 5
2.77644
Boi and avg
CRAR
BOI Avg
Mean 12.098 12.8748
0.17762
Variance 0.87057 9
Observations 5 5
0.82845
Hypothesized Mean
Difference 0
df 4
t Stat -2.75803
0.02547
P(T<=t) one-tail 6
2.13184
0.05095
P(T<=t) two-tail 3
2.77644
Debt equity ratio

BOI Avg

143.873
Mean 105.204 2
1392.06 1528.39
Variance 5 1
Observations 5 5
0.40550
Hypothesized Mean
Difference 0
df 4
t Stat -2.07438
2.13184
2.77644

BOI Avg
Mean 61.224 59.5268
6.92057
Variance 5.30258 5
Observations 5 5
0.84696
Hypothesized Mean
Difference 0
df 4
2.70959
t Stat 7
2.13184
2.77644

BOI Avg
Mean 72.936 69.6912
8.80202
Variance 7.39783 5
Observations 5 5
0.88603
Hypothesized Mean
Difference 0
df 4
5.26349
t Stat 3
2.13184
2.77644

BOI Avg
Mean 18.89 21.6252
27.2994 0.76009
Variance 5 7
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -1.24881
0.13991
P(T<=t) one-tail 6
2.13184
0.27983
P(T<=t) two-tail 2

5
Return on assets
BOI AVG
Mean 1.006 0.9496
0.01499
Variance 0.13048 9
Observations 5 5
Hypothesized Mean
Difference 0
df 4
0.47757
t Stat 9
0.32893
P(T<=t) one-tail 8
2.13184
0.65787
P(T<=t) two-tail 5
2.77644

BOI AVG
Mean 14.684 16.144
3.99330
Variance 1.20928 4
Observations 5 5
0.20495
Hypothesized Mean
Difference 0

df 4
t Stat -1.57403
0.09529
P(T<=t) one-tail 7
2.13184
0.19059
P(T<=t) two-tail 5
2.77644

BOI AVG
Mean 85.4 85.364
0.53090
Variance 1.3 4
Observations 5 5
Hypothesized Mean
Difference 0
df 4
0.05662
t Stat 6
0.47877
P(T<=t) one-tail 9
2.13184
0.95755
P(T<=t) two-tail 9
2.77644


BOI AVG
Mean 10.816 9.9404
0.37397
Variance 1.15393 9
Observations 5 5
0.18746
Hypothesized Mean
Difference 0
df 4
1.72946
t Stat 6
0.07939
P(T<=t) one-tail 1
2.13184
0.15878
P(T<=t) two-tail 2
2.77644
Pnb and avg
CRAR
PNB Avg
Mean 13.178 12.8748
0.17762
Variance 1.01657 9
Observations 5 5
0.89519
Hypothesized Mean
Difference 0
df 4
1.02984
t Stat 6
0.18063
P(T<=t) one-tail 9
2.13184

8
2.77644
Debt equity ratio

PNB Avg
143.873
Mean 54.55 2
1303.29 1528.39
Variance 2 1
Observations 5 5
0.27190
Hypothesized Mean
Difference 0
df 4
t Stat -4.3962
0.00586
P(T<=t) one-tail 3
2.13184
0.01172
P(T<=t) two-tail 6
2.77644

PNB Avg
Mean 59.278 59.5268
21.8959 6.92057
Variance 7 5
Observations 5 5
Hypothesized Mean
Difference 0

df 4
t Stat -0.25933
0.40408
P(T<=t) one-tail 9
2.13184
0.80817
P(T<=t) two-tail 8
2.77644

PNB Avg
Mean 70.348 69.6912
24.8973 8.80202
Variance 2 5
Observations 5 5
0.97716
Hypothesized Mean
Difference 0
df 4
0.67257
t Stat 8
0.26903
P(T<=t) one-tail 5
2.13184
2.77644

PNB Avg

Mean 22.738 21.6252
32.3571 0.76009
Variance 2 7
Observations 5 5
0.38361
Hypothesized Mean
Difference 0
df 4
0.45959
t Stat 7
0.33483
P(T<=t) one-tail 7
2.13184
0.66967
P(T<=t) two-tail 5
2.77644
Return on assets
PNB AVG
Mean 1.22 0.9496
0.01499
Variance 0.0338 9
Observations 5 5
0.70350
Hypothesized Mean
Difference 0
df 4
4.62120
t Stat 3
0.00493
P(T<=t) one-tail 6
2.13184
0.00987
P(T<=t) two-tail 2
2.77644

PNB AVG
Mean 16.98 16.144
3.99330
Variance 20.557 4
Observations 5 5
Hypothesized Mean
Difference 0
df 4
0.33088
t Stat 4
2.13184
0.75733
P(T<=t) two-tail 9
2.77644

PNB AVG
Mean 87.6 85.364
0.53090
Variance 2.3 4
Observations 5 5
0.49410
Hypothesized Mean
Difference 0
df 4
3.79156
t Stat 9

1
2.13184
0.01924
P(T<=t) two-tail 3
2.77644

PNB AVG
Mean 10.876 9.9404
13.2668 0.37397
Variance 8 9
Observations 5 5
0.93313
Hypothesized Mean
Difference 0
df 4
0.67933
t Stat 3
0.26710
P(T<=t) one-tail 2
2.13184
0.53420
P(T<=t) two-tail 5
2.77644

PNB AVG
Mean 12.422 13.3784
18.5469 4.16125
Variance 2 9

Observations 5 5
0.73828
Hypothesized Mean
Difference 0
df 4
t Stat -0.68537
0.26538
P(T<=t) one-tail 2
2.13184
0.53076
P(T<=t) two-tail 4
2.77644

PNB AVG
Mean 5.404 8.5192
5.48526
Variance 3.68423 5
Observations 5 5
0.99166
Hypothesized Mean
Difference 0
df 4
t Stat -13.8338
P(T<=t) one-tail 7.91E-05
2.13184
0.00015
P(T<=t) two-tail 8
2.77644

Profit per employee
PNB AVG
Mean 4.354 5.196
1.60590
Variance 4.29688 2
Observations 5 5
0.94544
Hypothesized Mean
Difference 0
df 4
t Stat -1.9464
0.06173
P(T<=t) one-tail 3
2.13184
0.12346
P(T<=t) two-tail 6
2.77644
Net Npa ratio

PNB AVG
Mean 0.454 0.9296
0.01953
Variance 0.04563 1
Observations 5 5
0.22835
Hypothesized Mean
Difference 0
df 4
t Stat -4.68501
0.00470
P(T<=t) one-tail 6

7
0.00941
P(T<=t) two-tail 3
2.77644
Idbi and avg
CRAR
IDBI Avg
Mean 12.672 12.8748
0.17762
Variance 2.30962 9
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -0.24172
0.41044
P(T<=t) one-tail 2
2.13184
0.82088
P(T<=t) two-tail 5
2.77644
Debt equity ratio

IDBI Avg
143.873
Mean 392.758 2
32310.5 1528.39
Variance 1 1
Observations 5 5
0.81990

Hypothesized Mean
Difference 0
df 4
3.72546
t Stat 4
0.01018
P(T<=t) one-tail 9
2.13184
0.02037
P(T<=t) two-tail 7
2.77644

IDBI Avg
Mean 60.356 59.5268
6.92057
Variance 2.17333 5
Observations 5 5
0.27016
Hypothesized Mean
Difference 0
df 4
0.70088
t Stat 2
0.26100
P(T<=t) one-tail 3
2.13184
0.52200
P(T<=t) two-tail 5
2.77644

IDBI Avg
Mean 60.356 69.6912
8.80202
Variance 2.17333 5
Observations 5 5
0.36313
Hypothesized Mean
Difference 0
df 4
t Stat -7.47471
0.00085
P(T<=t) one-tail 6
2.13184
0.00171
P(T<=t) two-tail 3
2.77644

IDBI Avg
Mean 22.796 21.6252
0.76009
Variance 3.22113 7
Observations 5 5
Hypothesized Mean
Difference 0
df 4
1.21607
t Stat 3
0.14540
P(T<=t) one-tail 6
2.13184
0.29081
P(T<=t) two-tail 2

2.77644
Return on assets
IDBI AVG
Mean 0.634 0.9496
0.01499
Variance 0.00393 9
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -4.53879
0.00525
P(T<=t) one-tail 3
2.13184
0.01050
P(T<=t) two-tail 7
2.77644

IDBI AVG
Mean 15.172 16.144
10.9425 3.99330
Variance 2 4
Observations 5 5
0.66326
Hypothesized Mean
Difference 0

df 4
t Stat -0.87522
0.21543
P(T<=t) one-tail 2
2.13184
0.43086
P(T<=t) two-tail 4
2.77644

IDBI AVG
Mean 84.828 85.364
10.9425 0.53090
Variance 2 4
Observations 5 5
0.71510
Hypothesized Mean
Difference 0
df 4
t Stat -0.42305
0.34700
P(T<=t) one-tail 6
2.13184
0.69401
P(T<=t) two-tail 1
2.77644


IDBI AVG
Mean 6.432 9.9404
0.37397
Variance 0.07817 9
Observations 5 5
Hypothesized Mean
Difference 0
df 4
t Stat -9.58407
0.00033
P(T<=t) one-tail 1
2.13184
0.00066
P(T<=t) two-tail 2
2.77644

IDBI AVG
Mean 13.29 13.3784
4.16125
Variance 24.3226 9
Observations 5 5
0.95619
Hypothesized Mean
Difference 0
df 4
t Stat -0.06501
0.47564
P(T<=t) one-tail 2
2.13184
0.95128
P(T<=t) two-tail 3
2.77644

IDBI AVG
Mean 18.722 8.5192
14.6224 5.48526
Variance 7 5
Observations 5 5
0.93666
Hypothesized Mean
Difference 0
df 4
t Stat 12.5014
0.00011
P(T<=t) one-tail 8
2.13184
0.00023
P(T<=t) two-tail 6
2.77644
Profit per employee

IDBI AVG
Mean 9.322 5.196
1.60590
Variance 3.09182 2
Observations 5 5
Hypothesized Mean
Difference 0
df 4
3.54145
t Stat 2

0.01199
P(T<=t) one-tail 1
2.13184
0.02398
P(T<=t) two-tail 2
2.77644
Net Npa ratio

IDBI AVG
Mean 1.074 0.9296
0.01953
Variance 0.02098 1
Observations 5 5
0.22092
Hypothesized Mean
Difference 0
df 4
1.81734
t Stat 3
0.07165
P(T<=t) one-tail 9
2.13184
0.14331
P(T<=t) two-tail 9
2.77644
Sbi and avg(h3)
CRAR
SBI Avg
Mean 13.066 12.8748
Variance 0.90093 0.1776292
Observations 5 5

df 4
t Stat 0.673547487
P(T<=t) one-tail 0.268757196
P(T<=t) two-tail 0.537514393
Debt equity ratio

SBI Avg
Mean 118.4 143.8732
Variance 591.8 1528.391261
Observations 5 5
df 4
t Stat -2.000994987
P(T<=t) one-tail 0.057992344
P(T<=t) two-tail 0.115984688

SBI Avg
Mean 57.4 59.5268
Variance 8.8 6.9205752
Observations 5 5
df 4

t Stat -2.36271001
P(T<=t) one-tail 0.038716857
P(T<=t) two-tail 0.077433714

SBI Avg
Mean 75.106 69.6912
Variance 16.69573 8.8020252
Observations 5 5
df 4
t Stat 4.730859344
P(T<=t) one-tail 0.004549159
P(T<=t) two-tail 0.009098318

SBI Avg
Mean 21.388 21.6252
Variance 4.74012 0.7600972
Observations 5 5
df 4
t Stat -0.227204291
P(T<=t) one-tail 0.415702448
P(T<=t) two-tail 0.831404896

Return on assets
SBI AVG
Mean 0.932 0.9496
Variance 0.00767 0.0149988
Observations 5 5
df 4
t Stat -0.628026947
P(T<=t) one-tail 0.282029726
P(T<=t) two-tail 0.564059452

SBI AVG
Mean 19.476 16.144
Variance 105.10988 3.993304
Observations 5 5
df 4
t Stat 0.88304506
P(T<=t) one-tail 0.213544322
P(T<=t) two-tail 0.427088644

SBI AVG
Mean 83.4 85.364
Variance 0.3 0.530904
Observations 5 5
df 4
t Stat -5.73737523
P(T<=t) one-tail 0.002285914
P(T<=t) two-tail 0.004571827

SBI AVG
Mean 9.5 9.9404
Variance 0.5669 0.3739788
Observations 5 5
df 4
t Stat -0.908797334
P(T<=t) one-tail 0.207430807
P(T<=t) two-tail 0.414861614

SBI AVG
Mean 14.2 13.3784
Variance 11.2 4.1612588
Observations 5 5
df 4
t Stat 0.587773741
P(T<=t) one-tail 0.294132308
P(T<=t) two-tail 0.588264616

SBI AVG
Mean 4.608 8.5192
Variance 1.91837 5.4852652
Observations 5 5
df 4
t Stat -8.825592722
P(T<=t) one-tail 0.000454841
P(T<=t) two-tail 0.000909682

Profit per employee
SBI AVG
Mean 3.494 5.196
Variance 1.38943 1.605902
Observations 5 5
df 4
t Stat -11.13241326
P(T<=t) one-tail 0.000185249
P(T<=t) two-tail 0.000370498
Net Npa ratio

SBI AVG
Mean 1.746 0.9296
Variance 0.01408 0.0195308
Observations 5 5
df 4
t Stat 12.09918392
P(T<=t) one-tail 0.000133836
P(T<=t) two-tail 0.000267672


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CAMELSC FRAMEWORK

1) Capital Risk Adequacy Ratio:

CRAR = Capital/ Total Risk Weighted Credit Exposure

TOLANI INSTITUTE OF MANAGEMENT STUDIES

3) Total Advance to Total Asset Ratio:

TOLANI INSTITUTE OF MANAGEMENT STUDIES

NPA: Non-Performing Assets:

An NPA is a loan or an advance where:

The following ratio is necessary to assess the asset quality.

1)Net NPA ratio:

Net NPA/ Total Loan

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Management of financial institution is generally evaluated in terms of capital adequacy,

1) Total Advance to Total Deposit Ratio:

Total Advance/ Total Deposit

2) Business per Employee:

Total Income/ No. of Employees.

3) Profit per Employee:

Profit after Tax/ No. of Employees

TOLANI INSTITUTE OF MANAGEMENT STUDIES

1) Dividend Payout Ratio:

Dividend/ Net profit

Net Profit/ Total Asset

Interest Income to Total Income:

Interest Income/ Total Income

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Other Income/ Total Income.

The liquidity of an institution depends on:

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Liquidity Asset/ Total Asset

Liquidity Asset to Demand Deposit:

Liquidity Asset/ demand Deposit

Liquidity Asset to Total Deposit:

Liquidity Asset/ Total Deposit

S and C- System and control

TOLANI INSTITUTE OF MANAGEMENT STUDIES

TOLANI INSTITUTE OF MANAGEMENT STUDIES

2) A CAMEL Model assessment of old private sector banks in India(Roji George)

3) PERFORMANCE ASSESSMENT OF BANKS USING CAMELS FRAMEWORK

4) AWARENESS AND PERCEPTION OF CAMEL RATING ACROSS BANKS:

TOLANI INSTITUTE OF MANAGEMENT STUDIES

5) CAMEL analysis, prudential regulation and banking system soundness in Nigeria

6) FINANCIAL SOUNDNESS OF OLD PRIVATE SECTOR BANKS (OPBS) IN

TOLANI INSTITUTE OF MANAGEMENT STUDIES

State Bank of India

Founded- 1st July 1955

Headquarters- Mumbai, Maharashtra, India

Products - Investment Banking

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Headquarters- Mumbai, India

Products- Finance and insurance

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Headquarters-New Delhi, India

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Headquarters- Bank of Baroda,

Products-Finance and insurance

TOLANI INSTITUTE OF MANAGEMENT STUDIES

Bank of India (BOI) is a state-owned commercial bank with headquarters in Mumbai.

TOLANI INSTITUTE OF MANAGEMENT STUDIES

To study the strength of using CAMELSC model framework as a tool of performance

1) To evaluate financial performance of the banks.

TOLANI INSTITUTE OF MANAGEMENT STUDIES