With Particular Reference to Yes Bank, an Empirical Study Examined the Effects of Financial Soundness on the Indian Banking Sector using the CAMEL Model
Author : Dr. Ch. Vishnu Murthy and Dr. Vanumu Chittabbai
Abstract :
In today's world, anyone with financial resources should open an account at one of India's premier financial institutions. As a result of the government's Pradhan Mantri Jan Dhan Yojna, almost nobody in India is without a bank account these days. But are you familiar with the top Indian banks, public sector banks, or the finest banks in India? If you don't, don't fret; we'll tell you all about the finest banks in India, covering the top 10 public and private banks in India and the financial goods they offer. Companies in today's internationally competitive market need to present an image of being good corporate citizens to survive. Companies today actively seek development through internationalization, and they have found that participating in morally helpful programmes gives them an edge in the marketplace. Companies with global operations often face significant financial penalties for their failure to address societal problems in the countries where they do business. These penalties can range from fines to jail time for executives who ignore pollution or labour rights violations. Banks and other financial organisations can use the CAMEL Model research to assess their current state and identify areas for potential growth. In this analysis, we look at ten different institutions in India, five state and five private. The years 2017-2022 are included in this analysis. The current research evaluates the economic health of the sampled institutions. Capital Adequacy, Asset Quality, Management Efficiency, Earnings Ability, and Liquidity (CAMEL) are used to evaluate financial institutions. According to the results, out of all the institutions analyzed, Kotak Mahindra did the best and placed first, while Punjab National Bank performed the worst. Overall, private institutions have done better than their public sector counterparts. In this paper, we apply the CAMEL model to analyse ICICI Bank's performance.
Keywords :
Financial performance, CAMEL model, yes bank, profitability
