Role Of Globally Accepted Camel Model In Performance Appraisal Of Scheduled Commercial Banks In India

Banks acts as fuel for smooth functioning of any economy as general and financial sector as specific. In this ever changing complex scenario, it is imperative to investigate and report the overall position of banks to ensure effective financial system in any economy. After the adoption of latest uniform rating system of banks model, several studies has conducted at international and national level to check the internal overall performance of banks at different time period. The main objective of article to determine the effectiveness, efficiency of model acronym in bank supervision. This supervisory system in banking sector is considerable improvement over the earlier system in terms of frequency, coverage, position & focus. In this article, reviewed the papers used the CAMEL model framework to assess the financial, operation and managerial position of banks for the period 2009-10 to 2015-16. CAMEL Model highlighted the true picture of internal proceedings (adequacy of capital, quality of assets, capacity of maximum earning with sound liquidity position) of particular bank irrespective of its Market Capitalisation, size, index, trading on stock market and reforms adaptive capability. It is concluded that model revealed the on-site viability, soundness of banks from time to time, irrespective of the category.


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