Analyzing the Financial Soundness of Indian B...

Analyzing the Financial Soundness of Indian Banking System by using a CAMEL Approach

Author Name : Dr. S. Janeefa Priya

ABSTRACT

Finance is the provision about the money at the time when it is required. Each and every business required finance for the smooth functioning of its activities. The important finance functions such as financing decision and investment decision depend to a large extent on an analysis of the financial positions of the organization. The financial management is the part of the management activity which is concerned with planning and controlling the firm’s financial resources .it deals with the various sources of raising funds for the firm. The sources must be suitable and economical for the needs of the business.

The plan of the study is to present information about the special effects of a range of factors on the efficiency, financial performance and growth aspects of public sector and private sector banks. The present study also makes an attempt to gauge and inspect the relative efficiency level of Public Sector Banks with that of Private Sector Banks. So, it is appropriate look how the important factors of Indian banking institutions impact the growth of prospective banks for this  CAMEL approach has been used and it is established that private sector banks are at the top of the list, with their performances in terms of soundness being the best.

KEYWORDS: CAMEL APPROACH , PRIVATE AND PUBLIC SECTOR BANKS