PriMera Scientific Engineering (ISSN: 2834-2550)

Research Article

Volume 2 Issue 6

A Camel Analysis on the Performance of South Indian Bank

Jerin Sunil and Bijin Philip*

May 24, 2023

DOI : 10.56831/PSEN-02-055

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Abstract

     An efficient, functional banking system may catalyze rapid growth in numerous areas of the economy and is a critical prerequisite for a country's progress, and India is no exception. This research study will investigate and compare the financial performance of South Indian Bank and HDFC Bank using the CAMEL Model. The purpose of this article is twofold: first, to examine South Indian Bank's financial performance, and second, to compare South Indian Bank's performance to that of HDFC Bank. The study utilizes secondary data from the banks' annual reports over five years, from 2017-18 to 2021-22. The CAMEL Model is used as a framework for the analysis, comprising five dimensions - capital adequacy, asset quality, management quality, earnings, and liquidity. According to the study's findings, both banks performed satisfactorily regarding capital sufficiency, managerial quality, and liquidity. However, regarding asset quality and earnings, HDFC Bank outperforms South Indian Bank. This research will help investors, stakeholders, and policymakers make informed judgments concerning these banks.

Keywords: Capital Adequacy; Asset Quality; Management Efficiency; Earning Capacity; Liquidity; Non-Performing Asset

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