Comparative Analysis & Financial Performance of Private & Public sector banks using CAMEL MODEL
Keywords:
financial performance, public sector banks, private sector banks, CAMEL model, canara bank, axis bank, profitability, banking efficiency.Abstract
This study compares the financial performances of public sector - private sector bank in india by taking canara bank - axis bank for the study, the main determination of this study is to understand how both banks performed in areas like profitability, asset quality, management efficiency, liquidity and capital adequacy, the study is based on secondary data composed from annual report of selected banks, RBI publications, journals and other reliable sources for the period from 2020–21 to 2024–25, the CAMEL model been used for evaluating and comparing the financial performance of both banks, different financial ratios such as debt equity ratio, advances to assets ratio, ROA, ROE, earnings per share, gross NPA, net NPA and liquidity ratios were used for the analysis, the results explain that axis bank performed better in success and earnings while canara bank maintained better financial steadiness and continuously improved its asset quality and risk management practices, the study also explains that both banks strengthened their financial position by using available resources effectively and following better financial planning during the study period, it also explains that maintaining proper balance between profitability, liquidity and risk management is essential for accomplishing extended term growth in banking sector, finally the studies concludes that both banks improved their overall financial performance during the study period and continue to make important contribution towards growth and stability of indian banking system.
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