Assessing the Robustness and Financial Effectiveness of Private Sector Banks(PVB) in India: An In-Depth Analysis Utilizing the CAMEL Rating Framework

The banking industry holds a significant role in shaping economic
growth and upholding a nation’s financial stability. The assessment
of a bank’s financial performance is crucial for its stakeholders as it
enables them to make pivotal decisions. The paper aims to evaluate
and rank the financial outcomes of ten privately owned bank in India
over the time frame of ten years (2014-2023. The study uses financial
ratios calculated under each of CAMEL(Capital Adequacy, Asset
quality, Managerial Efficacy, Earnings profitability, and Liquidity)
to give a view on banks strengths and weaknesses. According to
the results, HDFC tops the ranking followed by IndusInd and Kotak
Mahindra Bank. These results provide knowledge on risk level of
respective banks and thus helps in decision making