Performance Evaluation of Selected Indian Banks using the CAMEL Model: A Comparative Study of State Bank of India (SBI) and HDFC Bank

ABSTRACT

The Indian banking industry has played a crucial role in driving the nations economic growth, despite facing challenges such as economic turmoil, declining asset quality, corporate governance issues, and a slowing economy. To address these challenges, the banking sector has undergone significant reforms, laws, and normative changes. This research focuses on the CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, and Liquidity) framework, a supervisory internal rating method used to evaluate banks overall performance. The CAMEL Rating system considers these five aspects to assess a banks performance. By analyzing select Indian public and private sector banks, particularly HDFC Bank from the private sector and State Bank of India (SBI) from the public sector, this research aims to gain a better understanding of their performance and access additional data. HDFC Bank and SBI are recognized leaders in their respective sectors, making them ideal subjects for this research.

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