Presented By

Abheek Gupta
Animesh Sinha
Anish Gupta
Neelam S. Mandowara
Nitesh Kharajani
INTRODUCTION
C A M E L S
Capital Adequacy
Asset quality
Management
Quality
Earning
Quality
Liquidity Quality
Sensitivity to Market
Risk
PROJECT METHODOLOGY
1
Research and Analysis to Identify
key Ratios
2
Identify Top 5 Indian Banks
3
Decide on Rating Model
4
Rate Selected Banks and
Analyze the Score
Excel
Sheet
BANKS USED FOR BENCHMARK
CREATION
State
Bank of
India
Kotak Mahindra
Bank
Axis Bank Canara Bank ICICI Bank
BANKS USED FOR ACTUAL RATING
HDFC
Bank
Punjab
National
Bank
Bank of
Baroda
Excel Sheet
WEIGHTS ASSIGNED TO
PARAMETERS
Parameter Weight Assigned
Capital Adequacy 25%
Asset Quality 20%
Management Quality 10%
Earning Quality 20%
Liquidity Quality 20%
Sensitivity to Market Risk 5%
COMPOSITE RATING AND ANALYSIS
Parameter Rating
Capital Adequacy 1.25
Asset Quality 1
Management Quality 2.06
Earning Quality 3
Liquidity Quality 4
Sensitivity to Market Risk 3
Overall Rating 2.30
1. Punjab National
Bank
Interpretation From Rating
Punjab National Bank is fundamentally sound
Moderate but correctable weaknesses in the
liquidity parameter
Bank is stable and can withstand most economic
downturns
All ratios related to Liquid Assets are adverse for
the bank
The banks liquidity position is drastically weaker
as compared to top banks



COMPOSITE RATING AND ANALYSIS
COMPOSITE RATING AND ANALYSIS
Parameter Rating
Capital Adequacy 1.25
Asset Quality 1
Management Quality 2.06
Earning Quality 2
Liquidity Quality 1.4
Sensitivity to Market Risk 1
Overall Rating 1.45
2. Bank of Baroda
Interpretation From Rating
Bank of Baroda is stable, well managed and sound
Minor weaknesses can be corrected routinely by
management
The bank gives no cause for concern

COMPOSITE RATING AND ANALYSIS
COMPOSITE RATING AND ANALYSIS
Parameter Rating
Capital Adequacy 1.5
Asset Quality 2.67
Management Quality 2.63
Earning Quality 2
Liquidity Quality 2.6
Sensitivity to Market Risk 1
Overall Rating 2.11
3. HDFC Bank
Interpretation From Rating
HDFC bank is fundamentally sound
Moderate weakness in Asset Quality, Management
Quality and Liquidity Parameters

Asset Quality Analysis
Slightly higher proportion of NPAs that calls for a
more stringent credit appraisal policy and more
follow up with defaulters


COMPOSITE RATING AND ANALYSIS
The following table contrasts this parameters
metrics for HDFC with the top benchmark banks:





COMPOSITE RATING AND ANALYSIS
Ratio HDFC Value TOP Five Bank
Average
Gross NPA/ Net
Advances
1.59% 1.11%
NPA/Total
Income
9% 6.64%
THANK YOU