Performance Analysis of Three Public Sector Banks in India using Camel Model

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1 Available online at International Journal of Advanced Scientific Research & Development Vol. 03, Spl. Iss. 03, Ver. I, Sep 2016, pp e-issn: p-issn: Performance Analysis of Three Public Sector Banks in India using Camel Model R. SHYAM PRASAD Assistant Professor, B.Com (Bank Management), Ramakrishna Mission Vivekananda College, Chennai. R. SREENATH Student (III Year), B.Com (Accounting & Finance), Ramakrishna Mission Vivekananda College, Chennai. ARTICLE INFO Article History: Received: 22 Sep 2016; Accepted: 22 Sep 2016; Published online: 28 Sep Key words: Performance, CAMEL Model, Public Sector Banks. ABSTRACT In today s scenario, the banking sector is one of the fastest growing sector and a lot of funds are invested in Banks. Also today s banking system is becoming more complex. There are so many models of evaluating the performance of the banks. This study has adopted the CAMEL Model to evaluate the performance of the banks. CAMEL is the best model because it measures the performance of the banks from each parameter. After deciding the model, three banks were chosen from the three public sectors banks, i.e. Vijaya Bank, United Bank of India, Bank of Maharashtra. The annual reports of the consecutive three years i.e to 2012 of all the banks were used to calculate ratios for all the banks and interpreted them. Copyright 2016 IJASRD. This is an open access article distributed under the Creative Common Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. INTRODUCTION In the recent years the financial system especially the banks have undergone numerous changes in the form of reforms, regulations & norms. The attempt here is to see how various ratios have been used and interpreted to reveal a bank s performance and how this particular model encompasses a wide range of parameters making it a widely used and accepted model in today s scenario. 1.1 Need for the Study The ultimate need for the study is to find the performance level of three public sector bank using CAMEL Framework as a Tool. Through this project the Company is made aware of the areas in which they are effective and the areas in which they need to lay more emphasis. How to cite this article: Prasad, S. R. & Sreenath, R. (2016). Performance Analysis of Three Public Sector Banks in India using Camel Model. International Journal of Advanced Scientific Research & Development (IJASRD), 03 (03/I), [Special Issue Sep 2016], pp

2 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai Scope of the Study This study was done using CAMEL Framework to the study of banking performance of public sector bank in India. The study covers three public sector banks only. Financials and other data regarding the bank financials are based on the yearly annual reports. This study also suggests that the bank should try formulating their future course of action. 1.3 Objective of the Study To study CAMEL Model Analysis of three public Sector Banks in India. To understand the financial performance of the banks. To apply CAMELS model of ranking on selected banking institutions & analyse the selected banks. To analyse the banks performance through CAMEL model and give suggestion for improvement if necessary. RESEARCH METHODOLOGY Here, we are under going to have analytical research i.e. analysis of banks financial statements which will make us understand the position of one bank in comparison of another and their financial position. 2.1 Research Design Area of Survey: The survey will be done for three banks. The study environment will be the Banking industry. Plan of Analysis: Here, we will be using financial statements of the banks in order to calculate different ratios required for camel rating system as it considers all areas of banking operations and considered to be the best available method for evaluation bank performance and bank s health. 2.2 Data Collection Method (i) Primary Data: Primary data was collected from the bank s balance sheet and bank s income statement and interview of the bank employees. (ii) Secondary Data: Secondary data on the subject was collected from bank s prospectus, annual reports and other websites. 2.3 Limitations of Study The study was limited to three banks only. Time and resource constrains. The method discussed pertains only to banks though it can be used for performance evaluation of other financial institutions. The study was completely done on the basis of ratios calculated from the balance sheets. 17 Volume 03, Special Issue 03, Version I 28 th September 2016

3 Performance Analysis of Three Public Sector Banks in India using Camel Model It was not possible to get a personal interview with the top management employees of all banks under study. CONCEPTUAL REVIEW 3.1 Capital Adequacy It is important for a bank to maintain depositors confidence and preventing the bank from going bankrupt. It reflects the overall financial condition of banks and also the ability of management to meet the need of additional capital. The following ratios measure capital adequacy: Capital Adequacy Ratio (CAR): The capital adequacy ratio is developed to ensure that banks can absorb a reasonable level of losses occurred due to operational losses and determine the capacity of the bank in meeting the losses. As per the latest RBI norms, the banks should have a CAR of 9 per cent. Debt-Equity Ratio (D/E): This ratio indicates the degree of leverage of a bank. It indicates how much of the bank business is financed through debt and how much through equity. Advance to Assets Ratio (Adv/Ast): This is the ratio indicates a bank s aggressiveness in lending which ultimately results in better profitability. Government Securities to Total Investments (G-sec/Inv): It is an important indicator showing the risk-taking ability of the bank. It is a bank s strategy to have high profits, high risk or low profits, low risk. 3.2 Assets Quality The quality of assets is an important parameter to gauge the strength of bank. The prime motto behind measuring the assets quality is to ascertain the component of nonperforming assets as a percentage of the total assets. The ratios necessary to assess the assets quality are: Net NPAs to Total Assets (NNPAs/TA): This ratio discloses the efficiency of bank in assessing the credit risk and, to an extent, recovering the debts. Net NPAs to Net Advances (NNPAs/NA): It is the most standard measure of assets quality measuring the net non-performing assets as a percentage to net advances. Total Investments to Total Assets (TI/TA): It indicates the extent of deployment of assets in investment as against advances. Percentage Change in NPAs: This measure tracks the movement in Net NPAs over previous year. The higher the reduction in the Net NPA level, the better it for the bank. 3.3 Management Efficiency Management efficiency is another important element of the CAMEL Model. The ratio in this segment involves subjective analysis to measure the efficiency and effectiveness of management. The ratios used to evaluate management efficiency are described as: Volume 03, Special Issue 03, Version I 28 th September

4 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai Total Advances to Total Deposits (TA/TD): This ratio measures the efficiency and ability of the bank s management in converting the deposits available with the bank excluding other funds like equity capital, etc. into high earning advances. Profit per Employee (PPE): This shows the surplus earned per employee. It is known by dividing the profit after tax earned by the bank by the total number of employees. Business per Employee (BPE): Business per employee shows the productivity of human force of bank. It is used as a tool to measure the efficiency of employees of a bank in generating business for the bank. Return on Net Worth (RONW): It is a measure of the profitability of a bank. Here, PAT is expressed as a percentage of Average Net Worth. 3.4 Earning Quality The quality of earnings is a very important criterion that determines the ability of a bank to earn consistently. It basically determines the profitability of bank and explains its sustainability and growth in earnings in future. The following ratios explain the quality of income generation. Operating Profit to Average Working Funds (OP/AWF): This ratio indicates how much a bank can earn profit from its operations for every rupee spent in the form of working fund. Percentage Growth in Net Profit (PAT Growth): It is the percentage change in net profit over the previous year. Net Profit to Average Assets (PAT/AA): This ratio measures return on assets employed or the efficiency in utilization of assets. 3.5 Liquidity Risk of liquidity is curse to the image of bank. Bank has to take a proper care to hedge the liquidity risk; at the same time ensuring good percentage of funds are invested in high return generating securities, so that it is in a position to generate profit with provision liquidity to the depositors. The following ratios are used to measure the liquidity: Liquid Assets to Demand Deposits (LA/DD): This ratio measures the ability of bank to meet the demand from depositors in a particular year. To offer higher liquidity for them, bank has to invest these funds in highly liquid form. Liquid Assets to Total Deposits (LA/TD): This ratio measures the liquidity available to the total deposits of the bank. Liquid Assets to Total Assets (LA/TA): It measures the overall liquidity position of the bank. The liquid asset includes cash in hand, balance with institutions and money at call and short notice. The total assets include the revaluation of all the assets. 19 Volume 03, Special Issue 03, Version I 28 th September 2016

5 Performance Analysis of Three Public Sector Banks in India using Camel Model 3.6 Research Review In the process of continuous evaluation of the bank s financial performance both in public sector and private sector, the academicians, scholars and administrators have made several studies on the CAMEL model but in different perspectives and in different periods. Cole et al (1995) have conducted a study on A CAMEL Rating's Shelf Life and their findings suggest that, if a bank has not been examined for more than two quarters, off-site monitoring systems usually provide a more accurate indication of survivability than its CAMEL rating. Godlewski (2003) have tested the validity of the CAMEL rating typology for bank's default modification in emerging markets. He focused explicitly on using a logical model applied to a database of defaulted banks in emerging markets. Said & Saucier (2003) examined the liquidity, solvency and efficiency of Japanese Banks using CAMEL rating methodology, for a representative sample of Japanese banks for the period , they evaluated capital adequacy, assets and management quality, earnings ability and liquidity position. Prasuna (2003) have analyzed the performance of Indian banks by adopting the CAMEL Model. The performance of 65 banks was studied for the period The author concluded that the competition was tough and consumers benefited from better services quality, innovative products and better bargains. Derviz et al. (2008) investigated the determinants of the movements in the long term Standard & Poor s and CAMEL bank ratings in the Czech Republic during the period when the three biggestbank s, representing approximately 60% of the Czech banking sector's total assets, were privatized (i.e., the time span ). Bhayani (2006) analyzed the performance of new private sector banks through the help of the CAMEL model. Four leading private sector banks Industrial Credit & Investment Corporation of India, Housing Development Finance Corporation, Unit Trust of India and Industrial Development Bank of India - had been taken as a sample. DATA ANALYSIS AND INTERPRETATION 4.1 Capital Adequacy Table Indicating Summarized Capital Adequacy Ratio of Three Banks Vijaya Bank Capital Adequacy Ratio (CAR): Debt-Equity Ratio (D/E): Advance to Assets Ratio Government Securities to Total Investments United Bank of India Capital Adequacy Ratio (CAR): Debt-Equity Ratio (D/E): Volume 03, Special Issue 03, Version I 28 th September

6 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai Advance to Assets Ratio Government Securities to Total Investments Bank of Maharashtra Capital Adequacy Ratio (CAR): Debt-Equity Ratio (D/E): Advance to Assets Ratio Government Securities to Total Investments It s clear that all banks are maintained higher CAR than the prescribed level. It is found that Vijaya bank secured the top position with highest average CAR of followed by Bank of Maharashtra (12.85), united bank of India (12.84). United bank of India is at the bottom most position with lest average CAR. In terms of Debt equity ratio United Bank of India is at the top position with least average of 0.56 followed by Vijaya bank (0.67) and Bank of Maharashtra (0.85). In case of advances to assets, Bank of Maharashtra is at the first position with highest average of 60.58% followed by Vijaya bank (59.74) and United bank of India (58.72%). United bank of India is at the bottom most position with least average of 58.72%. Its again Bank of Maharashtra is at the top position in Government securities to Investments with highest average of 81.46, followed by united bank of India (75.31) and Vijaya Bank (74.35). Vijaya Bank is at the last position with the least average Table Indicating Capital Adequacy Ratio Capital Adequacy Ratio (CAR): Debt-Equity Ratio (D/E): Advance to Assets Ratio Government Securities to Total Inv Table Indicating Rank Position of Various Ratios Capital Adequacy Ratio (CAR) Debt-Equity Ratio (D/E) Advance to Assets Ratio Government Securities to Total Inv Average Rank Volume 03, Special Issue 03, Version I 28 th September 2016

7 Performance Analysis of Three Public Sector Banks in India using Camel Model On the basis of group averages of four sub-parameters of capital adequacy Bank of Maharashtra is at the top position with group average 1.75, followed by Vijaya Bank (2) and United bank of India (2.25) which stood at the last position due to its poor performance in CAR and Adv/Ast. 4.2 Asset Quality Table Indicating Summarized Asset Quality Ratio of Three Banks Vijaya Bank Net NPAs to Total Assets (NNPAs/TA) Net NPAs to Net Advances (NNPAs/NA) Total Investments to Total Assets (TI/TA) Percentage Change in NPAs YoY United Bank of India Net NPAs to Total Assets (NNPAs/TA) Net NPAs to Net Advances (NNPAs/NA) Total Investments to Total Assets (TI/TA) Percentage Change in NPAs YoY Bank of Maharashtra Net NPAs to Total Assets (NNPAs/TA) Net NPAs to Net Advances (NNPAs/NA) Total Investments to Total Assets (TI/TA) Percentage Change in NPAs YoY Bank of Maharashtra is at the top position with an average NNPAs/TA of 0.75, followed by Vijaya Bank (0.92) and United bank of India (0.97) which stood at the last position. In case of NNPAs/NA it s again bank of Maharashtra is at the top position with an average of 1.27 followed by Vijaya bank (1.54) and United bank of India (1.65) which stood at last position. In terms of TI/TA, Bank of Maharashtra is at the first position with an average of followed by Vijaya Bank (30.25) and United bank of India (30.50). United bank of India is at first position with percentage change in NPAs with an average followed by Bank of Maharashtra (37.64) and Vijaya Bank (53.68). Volume 03, Special Issue 03, Version I 28 th September

8 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai Table Indicating Asset Quality Ratio Net NPAs to Total Assets (NNPAs/TA) Net NPAs to Net Adv (NNPAs/NA) Total Investment to Total Assets (TI/TA) Percentage Change in NPAs YoY Table Indicating Rank Position of Various Ratios Net NPAs to Total Assets (NNPAs/TA) Net NPAs to Net Adv (NNPAs/NA) Total Inv to Total Assets (TI/TA) Percentage Change in NPAs Average Rank On the bases of group averages of sub-parameters of assets quality, Bank of Maharashtra is at the top position with group average 1.25, followed by Vijaya Bank (2.25) and united bank of India stands at bottom with average of (2.5). 4.3 Management Table Indicating Summarized Management Ratio of Three Banks Vijaya Bank Total Advances to Total Deposits (TA/TD): Profit per Employee (PPE): Business per Employee (BPE): United Bank of India Total Advances to Total Deposits (TA/TD): Profit per Employee (PPE): Business per Employee (BPE): Bank of Maharashtra Total Advances to Total Deposits (TA/TD): Profit per Employee (PPE): Business per Employee (BPE): Volume 03, Special Issue 03, Version I 28 th September 2016

9 Performance Analysis of Three Public Sector Banks in India using Camel Model It is found that Bank of Maharashtra secured the top position with highest average TA/TD of followed by Vijaya Bank (67.76), united bank of India (67.18). United bank of India is at the bottom most position with lest average TA/TD. In terms of PPE Vijaya bank is at the top position with least average of 0.046crores followed by United Bank of India (0.032crores) and Bank of Maharashtra (0.027). In case of Business per Employee, Vijaya bank is at the first position with highest average of 0.59crores followed by Bank of Maharashtra (0.51crores) and United bank of India (0.47crores) Table Indicating Management Ratio Total Adv to Total Deposits (TA/TD) Profit per Employee (PPE) Business per Employee (BPE) Table Indicating Rank Position of Various Ratios Total Adv to Total Deposits (TA/TD) Profit per Employee (PPE) Business per Employee (BPE) Average Rank On the basis of group averages of three sub-parameters, Vijaya bank is at the top most position with group average 1.33, followed by Bank of Maharashtra (2) and United Bank of India (2.67) which is positioned at last due to its poor performance in all sub parameters of management efficiency. 4.4 Earnings Table Indicating Summarized Earnings Ratio of Three Banks Vijaya Bank Operating Profit to Avg Working Funds Percentage Growth in Net Profit Net Profit to Average Assets (PAT/AA) United Bank of India Operating Profit to Avg Working Funds Percentage Growth in Net Profit Net Profit to Average Assets (PAT/AA) Volume 03, Special Issue 03, Version I 28 th September

10 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai Bank of Maharashtra Operating Profit to Avg Working Funds Percentage Growth in Net Profit Net Profit to Average Assets (PAT/AA) It is found that Vijaya Bank secured the top position with highest average operating profit to avg working funds of 1.36 followed by United Bank of India (1.04), Bank of Maharashtra (0.81). Bank of Maharashtra is at the bottom most position with lest average operating profit to avg working funds. In terms of Percentage Growth in Net Profit United bank of India is at the top position with least average of followed by Vijaya Bank (35.81) and Bank of Maharashtra (33.85). In case of PAT/AA, Vijaya bank is at the first position with highest average of 0.70 followed by united bank of India (0.58) and Bank of Maharashtra (0.48) Table Indicating Earnings Ratio Op Profit to Avg Working Funds Percentage Growth in Net Profit Net Profit to Avg Assets (PAT/AA) Table Indicating Rank Position of Various Ratios Op Profit to Avg Working Funds Percentage Growth in Net Profit Net Profit to Avg Assets (PAT/AA) Average Rank On the basis of group averages, Vijaya bank was at the top position with group average (1.33) followed by United bank of India (1.67) and Bank of Maharashtra (3) which failed in all sub-parameters and stood at last place. 4.5 Liquidity Table Indicating Summarized Liquidity Ratio of Three Banks Vijaya Bank Liquid Assets to Demand Deposits (LA/DD) Liquid Assets to Total Deposits (LA/TD) Liquid Assets to Total Assets (LA/TA) Volume 03, Special Issue 03, Version I 28 th September 2016

11 Performance Analysis of Three Public Sector Banks in India using Camel Model G-Sec to Total Assets (G-Sec/TA) Approved Securities to Total Assets (AS/TA) United Bank of India Liquid Assets to Demand Deposits (LA/DD) Liquid Assets to Total Deposits (LA/TD) Liquid Assets to Total Assets (LA/TA) G-Sec to Total Assets (G-Sec/TA) Approved Securities to Total Assets (AS/TA) Bank of Maharashtra Liquid Assets to Demand Deposits (LA/DD) Liquid Assets to Total Deposits (LA/TD) Liquid Assets to Total Assets (LA/TA) G-Sec to Total Assets (G-Sec/TA) Approved Securities to Total Assets (AS/TA) Vijaya bank is at first place in LA/DD with highest average of , followed by United bank of India (85.52) and Bank of Maharashtra (79.14). In case of LA/TD, United bank of India for first position with highest average of 8.98, followed by Bank of Maharashtra (8.05) and Vijaya bank (8.02). In LA/TA, United bank of India is at top with the average 7.85, followed by Bank of Maharashtra (7.08) and Vijaya bank (7.07). Bank of Maharashtra is at the top position in G-Sec/TA with an average 23.27, followed by United bank of India (22.96) and Vijaya Bank (22.48). In terms of AS/TA, Bank of Maharashtra is at top position with an average Table Indicating Liquidity Ratio L.Assets to Demand Deposits (LA/DD) L.Assets to Total Deposits (LA/TD) L.Assets to Total Assets (LA/TA) G-Sec to Total Assets (G-Sec/TA) Approved Sec to Total Assets (AS/TA) Table Indicating Rank Position of Various Ratios L.Assets to Demand Deposits (LA/DD) L.Assets to Total Deposits (LA/TD) L.Assets to Total Assets (LA/TA) Volume 03, Special Issue 03, Version I 28 th September

12 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai G-Sec to Total Assets (G-Sec/TA) Approved Sec to Total Assets (AS/TA) Average Rank On the basis of group averages of Liquidity ratio, United bank of India is at the top position with group average (1.6) followed by Bank of Maharashtra (1.8) and Vijaya bank (2.6) which failed in all sub-parameters and stood at last place. 4.6 Overall Ranking Table Indicating Overall Ranking all Three Banks Banks Vijaya Bank UBI BOM C A M E L AVG RANK It is clear from the table that Vijaya bank is ranked at top position with composite average , followed by Bank of Maharashtra (1.96) and United Bank of India (2.1367) which stands at the bottom most position. RESULTS AND DISCUSSION 5.1 Summary of Findings Capital Adequacy The capital adequacy ratio of all the three banks is above the minimum requirements and above the industry average. Group averages of capital adequacy indicates Bank of Maharashtra is at the top position with group average 1.75, followed by Vijaya Bank (2) and United bank of India (2.25) which stood at the last position due to its poor performance in CAR and Adv/Ast. (i) Assets Quality: United bank of India and Bank of Maharashtra has shown remarkable decrease in NPA s. But the NPA of Vijaya bank is increasing every year. Group averages of sub-parameters of assets quality indicates, Bank of Maharashtra is at the top position with group average 1.25, followed by Vijaya Bank (2.25) and united bank of India stands at bottom with average of (2.5). (ii) Management: Professional approach that has been adopted by the banks in the recent past is in right direction & also it is the right decision. Group averages of three sub-parameters of Management ratio indicates, Vijaya bank is at the top most position with group average 1.33, followed by Bank of 27 Volume 03, Special Issue 03, Version I 28 th September 2016

13 Performance Analysis of Three Public Sector Banks in India using Camel Model Maharashtra (2) and United Bank of India (2.67) which is positioned at last due to its poor performance in all sub parameters of management efficiency. (iii) Earnings: Vijaya bank has shown a good earning record. But Bank of Maharashtra has gone down in its performance. United bank of India performance has been average. Earnings ratio indicates, Vijaya bank was at the top position with group average (1.33) followed by United bank of India (1.67) and Bank of Maharashtra (3) which failed in all sub-parameters and stood at last place. (iv) Liquidity: Banks should maintain quality securities with good liquidity to meet contingencies. United Bank of India are fulfilling this requirement by maintaining highest credit deposit ratio followed by Bank of Maharashtra and Vijaya bank at last. Group averages of Liquidity ratio indicates, United bank of India is at the top position with group average (1.6) followed by Bank of Maharashtra (1.8) and Vijaya bank (2.6) which failed in all sub-parameters and stood at last place. (v) Overall Ranking: From the study of camel framework of three public sector banks the overall ranking indicates that Vijaya bank is ranked at top position with composite average , followed by Bank of Maharashtra (1.96) and United Bank of India (2.1367) which stands at the bottom most position. SUGGESTIONS Vijaya Bank is excellent in Earnings ratio and management ratio but lacks in other ratio like Capital, Assets, and Liquidity etc, so more focus should be targeted towards these Capital, Assets Management and Liquidity to increase the bank performance and competitive efficiency. If we compare Vijaya Bank with Bank of Maharashtra and United bank of India s Liquidity ratio it is not quite good. So, Vijaya Bank should improve its liquidity ratio. The Major focus should be shown to Liquid assets to Total Deposits ratio, liquid assets to total assest, govt sec to total assets and approved sec to total assets. In Vijaya bank, debt equity ratio is continuously rising over the years which are not good so they have to increase equity or reduce debts in their capital structure. Vijaya bank has to give more advances in order to earn more interest. But they should have to also keep in mind the credit worthiness of the customers. Vijaya Bank should create more awareness among the people through Targeting youngsters as well as providing new schemes in order to attract more customers. The banks should adapt themselves quickly to the changing norms. The system is getting internationally standardized with the coming of BASELL II accords so the Indian banks should strengthen internal processes so as to cope with the standards. The banks should try to maintain a 0% NPA by always lending and investing or creating quality assets which earn returns by way of interest and profits. The bank should focus more on managing Liquidity as it is at the last position compared to other banks. Volume 03, Special Issue 03, Version I 28 th September

14 Emerging Innovative Strategies in Business Creating a Competitive Edge Organized by PG Department of Banking & Insurance Management and Department of Bank Management, Ethiraj College for Women (Autonomous), Chennai CONCLUSION The current Banking Crisis, which is quite unprecedented, underlines the importance of regulatory issues and the effects of incompetence in this area. CAMEL, as a rating system for judging the soundness of Banks is a quite useful tool that can help in mitigating the conditions and risks that lead to Bank failures. The report makes an attempt to examine and compare the performance of three different public sector banks of India i.e. Vijaya Bank, United Bank of India and Bank of Maharashtra. The analysis is based on the CAMEL Model. The study has brought many interesting results, some of which are mentioned as below: All the three banks have succeeded in maintaining CRAR at a higher level than the prescribed level, 9%. But Vijaya bank has maintained highest which is very good sign for bank to survive and to expand in future. In Management Quality, we have found that Business per Employee Ratio and Profit per Employee Ratio is more in Vijaya bank followed by Bank of Maharashtra and United bank of India. This shows the growth of the bank as well as efficiency of the employee, which is very good in all the banks and they will help to the bank to grow in future. After evaluating all the ratios, calculations and ratings we have given 1 st Rank to Vijaya bank, 2 nd Rank to bank of Maharashtra and 3 rd Rank to United bank of India. REFERENCE [1] Bhayani, S. (2006). Performance of the New Indian Private Sector Banks: A Comparative Study. Journal of Management Research, 5 (11), pp [2] Cole, Rebel A. and Gunther, Jeffery, (1995). A CAMEL Rating's Shelf Life. Available at SSRN: [3] Derviz, A., & Podpiera, J. (2008). Predicting Bank CAMEL and S&P Ratings: The Case of the Czech Republic. Emerging Markets, Finance & Trade, 44 (1), p Retrieved April 13, 2010, from ABI/INFORM Global. (Document ID: ). [4] Godlewski, C. (2003). Bank s Default Modelisation: An Application to Banks from Emerging Market Economies. Journal of Social Science Research Network, 4 (3), pp [5] Gupta, R. (2008). A CAMEL Model Analysis of Private Sector Banks in India. Journal of Gyan Management, 2 (1), pp [6] Prasuna D G (2003). Performance Snapshot Chartered Financial Analyst, 10 (11), pp [7] Said, M. & Saucier. (2003). Liquidity, solvency, and efficiency: An empirical analysis of the Japanese banks distress. Journal of Oxford, 5 (3), pp [8] Kothari, C.R., Research Methodology: Methods and Techniques, Wishwa Publication, Delhi [9] The ICFAI Journal of Bank Management Vol.V,NO.3,August 2006 [10] Prasad, K. V. N., Ravinder, G. & Reddy, M, D. (2011). A Camel Model Analysis of Public & Private Sector Banks in India. Journal on Banking Financial Services & Insurance Research, 1 (5), pp ANNUAL REPORTS: [11] Vijay bank , , [12] Bank of Maharasthra , , [13] United bank of India , , Volume 03, Special Issue 03, Version I 28 th September 2016