SUMMER INTERNSHIP PROJECT REPORT ON

A STUDY ON FINANCIAL ANALYSIS OF PRIVET SECTOR

BANKS USING CAMEL MODEL
AT
SBI AND ICICI BANK

SUBMITTED TO
INSTITUDE CODE : 810
INSTITUTE FULL NAME : SHREE SWAMINARAYAN
INSTITUTE OF MANAGEMENT AND IT PORBANDAR

UNDER THE GUIDENCE OF

PROF. AKIB R. HAMDANI

IN PARTIAL FULFILMENT OF THR REQUIRMENT OF THE

AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA )

1|Page
 OFFERD BY
GUJARAT TECHNOLOGICAL UNIVERSITY
AHMEDABAD

PREPARED BY

ODEDARA BHARATBHAI JODHABHAI

ENROLL. NO. = 198100592036

MBA ( SEMESTER –III) JULY 2020

INSTITUTE CERTIFICATE

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 PLAGIARISM REPORT
3|Page
 DECLARTION
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I ODEDARA BHARATBHAI JODHABHAI hereby declare that this
project report entitled A STUDY ON FINANCIAL ANALYSIS OF
PRIVET SECTOR BANKS USING CAMEL MODEL submitted by
me, under the guidance of PROF. AKIB M HAMDANI (Position of
Project Guide) of SHREE SWAMINARAYAN INSTITUTE OF
MANAGEMENT AND IT COLLEGE is my own and has not been
submitted to any other University or Institute or published earlier.

Place: PORBANDAR

Date:

INDEX
5|Page
 NO. NAME OF TOPIC PAGE
NUMBER

1 INTRODUCTION 7-11
2 CONCEPTUAL 12-16
FRAMWORK
3 LITERTURE REVIEW 17
4 RESEARCH 18-19
METHODOLODGY
5 DATA ANALYSIS 22-26

6 FINDINGS 27
7 CONCLUSION 28

8 BIBLIOGRAPHY 29

INTRODUCTION

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INTRODUCTION

The real economy is dynamic, it is imperative that the banking system is

adaptive and competitive enough to cope with multiple demands and
objectives made on it by various constituents of the economy. From the
point of view of financial inclusion also, there is a need to make
available the financial services to the excluded segments of the society.
Thus, it can be said that today’s banking structure in India has scope and
need for further growth in size.

In the current scenario, where every industry is so much volatile, it is of

great help if a common man can make judgment that are free from
clouding generate by brand name and other promotional strategies.
Therefore, this paper makes an effort to analyze the overall financial
health of the selected public and private sector banks in India. Banking
in India originated in the last decades of the 18 th century. The first banks
were The General Bank of India, which started in 1786, and Bank of
Hindustan, which started in 1790; both are now defunct.

The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank o f Bombay and the
Bank of Madras, all three of which were established under Charters from
the British East India Company. For many years the Presidency banks
acted as quasi-central banks, as did their successors. The three banks
merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India in 1950.

State Bank of India

7|Page
The State Bank of India, popularly known as SBI, is India’s largest
commercial bank with a glorious history of more than 200 years. State
Bank of India Introduction(SBI), Owned by The Government of
India, is categorized as an Indian Multinational, Public sector banking
and Financial services company, with its headquarters located in
Mumbai, Maharashtra.

The chapter State Bank of India Introduction gives a brief introduction

about State Bank of India (SBI)
With more than 14,000 branches in India, SBI is the largest and one of
the premium banking and financial services company in India by assets,
deposits, profits, branches, customers, and employees. SBI has also
established and secured its roots globally with 191 foreign offices spread
across 36 countries.

SBI is one of the Big Four banks of India, along with ICICI Bank, Bank
of Baroda and Punjab National Bank. As of 2016, SBI is ranked 232nd on
the Fortune Global 500 list of the world’s biggest corporations, and
stands as the proxy for the Indian Economy. SBI was ranked 152nd in
The Forbes list of Global 2000 firms in May 2015. The Government of
India owns 58.60% of SBI and thus is the largest shareholder of SBI, a
Fortune 500 company.

SBI, the oldest commercial bank, traces its ancestry to the 19 th century
(British India) when the Bank of Calcutta was founded in 1806. In 1921,
the Bank of Calcutta, merged with the banks of Madras and Bombay to
form the Imperial Bank of India. In 1955, when the Government of India
nationalized the Imperial Bank along with the RBI, the Imperial Bank
acquired the name State Bank of India. Since its beginning, SBI has
been constantly endeavoring to provide utmost customer satisfaction to
the most ideal degree.

SUBSIDIARIES OF SBI

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State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travanscore

ICICI BANK

ICICI Bank was established by the Industrial Credit and Investment

Corporation of India (ICICI), an Indian financial institution, as a
wholly owned subsidiary in 1994 in Vadodara. The parent company was
formed in 1955 as a joint-venture of the World Bank, India's public-
sector banks and public-sector insurance companies to provide project
financing to Indian industry. The bank was founded as the Industrial
Credit and Investment Corporation of India Bank, before it changed its
name to ICICI Bank.

ICICI Bank launched internet Banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through

a public offering of shares in India in 1998, followed by an equity
offering in the form of American depositary receipts on the NYSE in
2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock
deal in 2001 and sold additional stakes to institutional investors during
2001–02.

In the 1990s, ICICI transformed its business from a development

financial institution offering only project finance to a diversified
financial services group, offering a wide variety of products and

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services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank.

In October 2001, the Boards of Directors of ICICI and ICICI Bank

approved the merger of ICICI and two of its wholly owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI
Capital Services Limited, with ICICI Bank. The merger was approved
by the Reserve Bank of India in April 2002.

In 2008, following the 2008 financial crisis, customers rushed to ICICI

ATMs and branches in some locations due to rumours of an adverse
financial position of ICICI Bank. The Reserve Bank of India issued a
clarification on the financial strength of ICICI Bank to dispel the
rumours.

In March 2020, the board of ICICI Bank Ltd. approved an investment of

Rs 1,000 crore in Yes Bank Ltd. This investment resulted in ICICI Bank
Limited holding in excess of a five percent shareholding in Yes Bank.

SUBSIDIARIES OF ICICI BANK

NATIONAL INTERNATIONAL
ICICI LOMBARD ICICI BANK UK PLC
ICICI Prudential Life Insurance ICICI BANK CANADA
Company Ltd
ICICI Securities Limited ICICI BANK EURASIA LLC
ICICI Prudential Asset
Management Company Limited
ICICI VENTURE
ICICI DIRECT.COM
ICICI FOUNDATION

INDUSTRY PROFILE

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A bank is a financial institution and a financial intermediary that accepts
deposits and channels those deposits into lending activities, either
directly or through capital markets. A bank connects customers that have
capital deficits to customers with capital surpluses. Due to their critical
status within the financial system and the economy generally, banks
are highly regulated in most countries. They are generally subject to
minimum capital requirements which are based on an international set of
capital standards, known as the Basel Accords.

Banking in India originated in the last decades of the 18th century. The
first banks were The General Bank of India, which started in 1786, and
Bank of Hindustan, which started in 1790; both are now defunct. The
oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank
of Madras, all three of which were established under charters from the
British East India Company.

For many years the Presidency banks acted as quasi-central banks, as

did their successors. The three banks merged in 1921 to form the
Imperial Bank of India, which, upon India's independence, became the
State Bank of India in 1955.

CONCEPTUAL FRAMWORK

11 | P a g e
Sangmi and Nazir (2010) have taken two major banks of north India
namely, Punjab national bank and Jammu and Kashmir Bank on the
basis of their role and participation in influencing the financial condition
of North India. They applied the Camel Model on these two banks by
taking the annual report data from 2001-2005, and found out that both
the banks were financially sound and suitable as far as their capital
adequacy, asset quality, management capability and liquidity is
concerned. Mishra and Kumari (2011)selected 12 public and private
sector banks on the basis of market capture and measured the efficiency
and soundness by Camel Model. From the analysis they ranked the
banks. They said that HDFC takes the lead followed by ICICI and Axis
Bank. Bank of Baroda and Punjab National Bank follows the fourth
position holded by IDBI and Kotak Mahindra Bank.

Public Sector Banks like SBI and Union Bank takes the back seat. It
donates that Private Sector Banks are performing better than Public
Sector Bank. Jha and Hui (2012) tried to find out the factors affecting
the performance of Nepalese Commercial Banks By using various camel
ratios such as return on asset (ROA), return on equity (ROE), capital
adequacy ratio (CAR) etc. As Public sector banks have higher total
assets compared to joint venture or domestic private banks, thus ROA
was found higher whereas overall performance of public sector was
unsound because ROE and CAR of joint venture and private banks was
found superior.

The financial performance of public sector banks is being eroded by

other factors such as poor management, high overhead cost, political
intervention, low quality of collateral etc. Kumar (2012) has given a
definition to camel rating system, according to him it is a mean to
categorize bank based on the overall health, financial status, managerial
12 | P a g e
and operational performance. In his study he has chosen the SBI and its
associates for checking the performance and concludes that State Bank
of India is always in the lead than its associates in every aspect of camel.
Aspal and Malhotra (2013) measured the financial performance of
Indian public sector banks’ asset by camel model and applying the tests
like Anova, f test and arithmetic test for the data collected for the year
2007-2011. They concluded that the top two performing banks are bank
of Baroda and Andhra bank because of high capital adequacy and asset
quality and the worst performer is united bank of India because of
management inefficiency, low capital adequacy and poor assets and
earning quality.

Central bank of India is at last position followed by UCO bank and bank
of Maharashtra. Jaspreet Kaur, Manpreet Kaur and Dr. Simranjit
SinghKumar and Sharma (2013) analyzed the performance of top 10 and
highest market capitalized banks in India with the help of camel model
approach, for the year 200610, their study found that Kotak Mahindra
Bank is on the lead and on highest position in terms of capital adequacy
followed by ICICI bank and they both are more efficient in managing
their liquidity. SBI has highest NPA level among their peer group
followed by ICICI bank whereas PNB is highly management efficient
with the highest grading in this parameter. Earning quality of SBI and
PNB are on top but overall SBI is ranked first followed by PNB and
HDFC.

Lakhtaria (2013) has selected the top 3 public sector banks, i.e. Bank of
Baroda, Punjab National Bank and State Bank of India for his study
using camel model and has ranked the banks according to the
performance and data interpreted. According to him Bank of Baroda
stood first followed by Punjab National Bank and State Bank of India is
on third position as per the data analyzed. Matkar (2013) has conducted
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a study on MSC banks by using camel model. From his study he
concluded that there has been an increase in the profits and business per
employee and capital adequacy ratio is also enhanced. Due to the
increase in the net non-interest income and decrease in operating
expenses, staff level cost for the last few years, the banks have displayed
a good growth. Retail banking and its products has also shown a
progress in MSC banks. Misra and Aspal (2013) did the study on whole
state bank group by using camel model approach and applying the tests
like Anova, kolmogorov-smirnov, and shapirowilk and found out that
though state bank of India is bigger entity than its other associates It got
the lowest rank in every aspect whether the liquidity or the asset quality
while state bank of Bikaner and Jaipur and state bank of Patiala is at the
top position.

The reason for getting lowest rank for SBI is that SBI has not been able
to perform well in debt-equity, government securities to total investment
ratios, advances to assets etc. Chaudhary (2014)conducted a study to
measure the right performance of public and private sector banks by the
use of secondarydata collected from annual reports, periodicals, website
etc. for the year 2009-2011 and found out that in every aspect private
sector bank has performed better than public sector banks and they are
growing at faster pace. Hoti and Alshiqi (2014) need to analyze the
financial performance of the banking system in Kosovo from 2006-2012
using camel model and by calculating return on investment. They
concluded that they did not find any significance difference in the
overall performance of the banks and this thing can only happen in the
times of global financial crisis which was earlier faced by Kosovo,
letting less sensitive effect.

Most banks were found with health balance sheet with a small level of
reserves for loans. Financial Performance Analysis of Selected Public
Sector Banks. Financial institutions are paramount tools in economy to
boost the economic growth, especially banks are one of them financial
institution. After the economic reforms 1991, Liberalization,
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privatization, globalization (LPG) growth of private sector banks
increase tremendously. Private Banks contributes significantly in growth
of economy. Initially banks are only limited to deposits and credits but
today banks are perform various functions. Before to privatization of
banks all financial needs of corporate and individual are meet by public
sector banks but after privatization private sector banks also not behind
the public sector banks to provide the credit facilities and other non
banking services to individual and corporate. Many studies revels that
private sector banks are better perform to public sector bank in terms of
NPA management, profit making and other so more.

An Analysis of Indian Private Sector Banks Using CAMEL

15 | P a g e
The banking sector’s performance is perceived as the replica of economic
activities of the economy. The stage of development of the banking industry
is a good reflection of the development of the economy. There is a substantial
improvement over the earlier supervisory system of banking sector in terms
of recovery, management efficiency, assets quality, earning quality and
internal control system to regulate the level of risk and financial viability of
commercial banks. The regulators have augmented bank supervision by using
CAMEL (capital adequacy ,asset quality, management quality, earnings and
liquidity) rating criterion to assess and evaluate the performance and financial
soundness of the activities of the bank.

The CAMEL supervisory criterion in banking sector is a significant and

considerable improvement over the earlier criterions in terms of frequency,
check ,spread over and concentration. During this period, the banking sector
has experienced a paradigm change and
it was the time to make performance appraisal of operations. Reserve
Bank of India recommended two supervisory rating models named as
CAMELS (Capital Adequacy, Assets Quality, Management, Earning,
Liquidity, Systems and Controls) and CACS (Capital Adequacy, Assets
Quality, Compliance, Systems and Controls) for rating of Indian commercial
Banks and Foreign Banks operating in India (Misra
& As pal, 2013).

REVIEW OF LITERATURE

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Review of literature provides the roadmap to researcher who wants to study
the problem and reveals the undisclosed facts and results. There have vast
literature on financial performance analysis of banks through ratio analysis
only but limited by CAMEL methodology .

Researcher reviews the published literature on financial performance analysis

through CAMEL methodology prior to conduct of research article. Svetlana
Tatuskar (2010) analyzed the financial performance of selected Indian
scheduled bank through CAMEL model. They had taken a sample of five
banks namely ICICI bank, SBI, Axis bank, HDFC bank and BOI for study
purpose. This study found that public sector banks like BOI had done
remarkable well on every CAMEL parameter.

In the case of private sector banks ICICI bank was outperformed the other
private sector banks.Study show that public sector bank should formulate
strong structure to recover of bad-assets. Sushendra Kumar Misra and
Parvesh Kumar Aspal (2013) conducted a study to evaluate the performance
& financial soundness of State Bank Group using CAMEL approach. In this
study, researchers evaluate and financial performance of through twenty ratio
from the year 2009-2011. They found It is found that in terms of Capital
Adequacy parameter SBBJ and SBP were at the top position, while SBI got
lowest rank. In terms of Asset Quality parameter, SBBJ held the top rank
while SBI held the lowest rank.

Under Management efficiency parameter it was observed that top rank taken
by SBT and lowest rank taken by SBBJ. In terms of Earning Quality
parameter the capability of SBM got the top rank while SBP was at the
lowest position. Under the Liquidity parameter SBI stood on the top position
and SBM was on the lowest position. SBI needs to improve its position with
regard to asset quality and capital adequacy, SBBJ should improve its
management efficiency and SBP should improve .

17 | P a g e
 RESEARCH METHODOLODGY

The CAMEL approach mainly considered for the purpose of to know the
performance of the different public sector and private sector banks by
the different tools like capital adequacy, asset quality, management
capability, earnings capacity, liquidity. Give the ranks to them according
to their performance in capital maintenance, asset quality, management
capability, earnings capacity, and liquidity in five different tools using
by CAMEL approach.

The overall performance and make a comparative analysis of major

private sector banks in India. Camel approach was used study the
performance and composite ranking method was used to make a
comparative analysis. It was found that in terms the overall performance
of private sector banks and public sector banks in India.

The study mentioned that the weakest area of private and public sector
banks were management of NPA’S. The performance of the different
banks were found to be impressive and the performance of private and
public sector banks were ranked according to their performance in
capital adequacy, asset quality, management capability, earnings
capacity, liquidity and give them to suggestions to overcome the
drawbacks.

Objectives of the Study:

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1)To evaluate the selected public and private sector banks from each of
the important parameter of CAMEL model like:

1 Capital Adequacy
2. Asset Quality
3 Management capability
4. Earnings capacity and
5. Liquidity

2) To investigate the factors that predominantly affects the financial

performance of the selected public & private sector banks.

Exploratory Research:

Based on the objectives of the study, Exploratory Research Design has

been adopted. Exploratory research is preliminary study of an unfamiliar
problem about which the researcher has little or no knowledge. The two
levels of exploratory study are, to discover the significant variables and
to find out the relationship between variables.

Sampling Technique:

Stratified Random Sampling Technique is adopted for selecting the

sample.

DATA ANALYSIS

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State Bank of India:

BALANCE SHEET

Balance Sheet Mar '20 Mar '19 Mar '18 Mar '17 Mar '16  
of State Bank
of India (in
Rs. Cr.)
  12 mths 12 mths 12 mths 12 mths 12 mths  
Capital and  
Liabilities:
Total Share 892.46 892.46 892.46 797.35 776.28  
Capital
Equity Share 892.46 892.46 892.46 797.35 776.28  
Capital
Reserves 207,352.30 195,367.42 193,388.12 155,903.06 143,498.16  
Net Worth 208,244.76 196,259.88 194,280.58 156,700.41 144,274.44  
Deposits 3,241,620.7 2,911,386.0 2,706,343.2 2,044,751.3 1,730,722.4  
3 1 9 9 4
Borrowings 314,655.65 403,017.12 362,142.07 317,693.66 323,344.59  
Total Debt 3,556,276.3 3,314,403.1 3,068,485.3 2,362,445.0 2,054,067.0  
8 3 6 5 3
Other 163,110.10 145,597.30 167,138.08 155,235.19 159,276.08  
Liabilities &
Provisions
Total 3,927,631.2 3,656,260.3 3,429,904.0 2,674,380.6 2,357,617.5  
Liabilities 4 1 2 5 5
Assets  
Cash & 166,735.78 176,932.42 150,397.18 127,997.62 129,629.33  
Balances with
RBI
Balance with 84,361.23 45,557.69 41,501.46 43,974.03 37,838.33  
Banks,
Money at Call
Advances 2,325,289.5 2,185,876.9 1,934,880.1 1,571,078.3 1,463,700.4  
6 2 9 8 2
Investments 1,046,954.5 967,021.95 1,060,986.7 765,989.63 575,651.78  
2 2
Gross Block 38,023.39 38,508.94 39,200.71 42,344.99 9,819.16  
Revaluation 23,762.67 24,653.94 24,847.99 31,585.65 0.00  

20 | P a g e
 Reserves
Net Block 14,260.72 13,855.00 14,352.72 10,759.34 9,819.16  
Capital Work 415.89 688.63 791.54 573.93 570.12  
In Progress
Other Assets 289,613.55 266,327.70 226,994.20 154,007.72 140,408.41  
Total Assets 3,927,631.2 3,656,260.3 3,429,904.0 2,674,380.6 2,357,617.5  
5 1 1 5 5
Contingent 1,270,752.7 1,113,678.0 1,168,579.3 1,040,929.2 1,088,296.2  
Liabilities 7 5 3 4 0
Book Value 233.34 219.91 217.69 196.53 185.85  
(Rs)

ICICI BANK:

BALANCE SHEET
Balance Sheet of Mar '20 Mar '19 Mar '18 Mar '17 Mar '16  
ICICI Bank (in Rs.
Cr.)
  12 mths 12 mths 12 mths 12 mths 12 mths  
Capital and  
Liabilities:
Total Share 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17  
Capital
Equity Share 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17  
Capital
Reserves 112,091.29 104,029.40 100,864.3 95,737.57 85,748.24  
7
Net Worth 113,389.54 105,323.54 102,155.7 96,908.94 86,918.11  
5
Deposits 770,968.99 652,919.67 560,975.2 490,039.0 421,425.7  
1 6 1
Borrowings 162,896.76 165,319.97 182,858.6 147,556.1 174,807.3  
2 5 8
Total Debt 933,865.75 818,239.64 743,833.8 637,595.2 596,233.0  
3 1 9
Other Liabilities & 47,994.99 37,851.46 30,196.40 34,245.16 34,726.44  

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 Provisions
Total Liabilities 1,095,250.2 961,414.64 876,185.9 768,749.3 717,877.6  
8 8 1 4
Assets  
Cash & Balances 35,283.96 37,858.01 33,102.38 31,702.41 27,106.09  
with RBI
Balance with 83,871.78 42,438.27 51,067.00 44,010.66 32,762.65  
Banks, Money at
Call
Advances 645,289.97 586,646.58 512,395.2 464,232.0 435,263.9  
9 8 4
Investments 249,531.48 207,732.68 202,994.1 161,506.5 160,411.8  
8 5 0
Gross Block 8,410.29 7,931.43 7,903.51 7,805.21 7,576.92  
Revaluation 3,114.87 3,044.51 3,003.19 3,042.14 2,817.47  
Reserves
Net Block 5,295.42 4,886.92 4,900.32 4,763.07 4,759.45  
Capital Work In 0.00 0.00 0.00 0.00 0.00  
Progress
Other Assets 75,977.67 81,852.17 71,726.80 62,534.55 57,573.70  
Total Assets 1,095,250.2 961,414.63 876,185.9 768,749.3 717,877.6  
8 7 2 3
Contingent 2,572,042.0 1,971,430.2 865,409.0 606,063.8 922,453.5  
Liabilities 4 7 7 0 1
Book Value (Rs) 175.17 163.38 158.91 166.37 149.47  

CREDIT DEPOSIT RATIO

(In percentage)
YEAR SBI ICICI
2015-2016 211.26 90.70
2016-2017 220.13 92.98
2017-2018 247.07 85.51
2018-2019 272.13 98.35
2019-2020 288.33 115.56

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 MEAN 1008.256 96.62
CGR 5.82 5.37

350

300

250

200
SBI
150 ICICI

100

50

0
2015-16 2016-17 2017-18 2018-19 2019-2020

Over the course of five financial periods of study the mean of Credit Deposit Ratio
in ICICI was lower (85.51%) than in SBI (211.26%). In case of SBI the credit
deposit ratio was highest in 2019-20 and lowest in 2015-16. But in case of ICICI
credit deposit ratio was highest in 2019-20 and lowest in 2017-18. This shows that
ICICI Bank has created more loan assets from its deposits as compared to SBI.

Operating Expenses to Total Funds Ratio (In %)

YEAR SBI ICICI

2015-2016 1.90 4.04
2016-2017 1.89 3.96
2017-2018 1.73 3.88
2018-2019 1.71 4.36
23 | P a g e
 2019-2020 1.77 4.62
MEAN 1.8 4.172
CGR 3.66 4.72

4.5

3.5

2.5 SBI
ICICI
2

1.5

0.5

0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

The ratio of operating funds to total funds of ICICI was varied from 4.04 per cent
to 4.62 percent during the period of study. It was lowest at 3.88 percent in 2017-18
but again increased to 0.74 percent in 2019-20. The ratio of SBI has also shows
fluctuation over the period of the study. It was at its lowest in 2018-19 (1.71
percent). After that it shows an increasing reached to 1.77 in 2019-2020. However,
the ratio of SBI remain more than the ratio of ICICI during the whole period of
study which shows that ICICI is working efficiently and economically than SBI.

NET PROFIT MARGIN

(In percentage)
YEAR SBI ICICI
2015-2016 5.63 10.60
2016-2017 0.35 5.30

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 2017-2018 -2.96 12.33
2018-2019 5.97 18.09
2019-2020 6.06 18.44
MEAN 3.01 12.95
CGR 4.38 5.11

20

15

10
SBI
ICICI
5

0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

-5

The ratio of net profits to total income of ICICI was varied from 10.60 per cent to
18.44 percent whereas in case of SBI it is not stable. It decreased to 5.63 percent
from 0.35 percent in 2016-17 then further decreased to -2.96 percent in 2017-18
and 5.97 percent in 2018-19 and finally increased to 6.06 percent in 2019-20
during the period of 5 years of study. However, the net profit margin was higher in
ICICI as compared to SBI during the period of study. Thus, the ICICI has shown
comparatively higher operational efficiency than SBI.

NET WORTH RATIO

(In percentage)
YEAR SBI ICICI
2015-2016 6.95 6.99
2016-2017 0.39 3.99

25 | P a g e
 2017-2018 -3.37 6.63
2018-2019 6.69 10.11
2019-2020 6.89 11.19
MEAN 3.57 7.78
CGR 3.96 7.00

14

12

10

6
SBI
4
ICICI
2

0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
-2

-4

-6

The net worth ratio of SBI was increased from 6.69 per cent to 6.89 per cent during
2018-19 to 2019-20, and decreased in 2016-17 and 2017-18. Whereas the ratio was
increased from 6.63 per cent to 11.19 per cent in ICICI. The table showed that the
net worth ratio was lower in SBI as compared to ICICi during the period of study,
which revealed that ICICI has utilized its resources more efficiently as compared
to SBI.

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 FINDINGS

By considering all of the parameters of CAMEL, it is seen that Axis bank is at the
top positionas assessed by the CAMEL Model compared to otherb anks und er the
study. Axis bank has strong performance in case of Asset Quality, Management
efficiency and Earnings Ability while it is lag behind incase of capital adequacy.
On the other side, IndusIndbank at the lowest position compared to other
banksunder the study due to its poor performance in thecontext of Capital
Adequacy, Earnings Ability and Liquidity whereas it perform better in case of
capital adequacy. Therefore, IndusInd bank should improve its position in

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particular weak areas. Therefore, the policy makers of the related lowest ranking
banks should takenecessary steps and try to find out solution to improvetheir
weaknesses by using the findings this study.

CONCLUSION

CONCLUSION

Due to radical changes in the banking sector in the recent years, the central banks
all around the world have improved their supervision quality and techniques. In
evaluating the function of the banks, many of the developed countries are now
following uniform financial rating system CAMEL rating along with existing
procedures and techniques. Various studies have been conducted in India as well to

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the rating obtained by them on the five parameters. The results show that there is a
statistically significant difference between CAMEL ratio of selective public
sector banks in India, thus, signifying that the overall performance of selective
public sector banks is different. Also, it can be concluded that the banks with least
ranking need to improve their performance to come up to the desired standards.

BIBLIOGRAPHY

REFRENCE LIST :-
(1) Annual reports of ICICI bank from 2015 to 2020
(2) Annual reports of SBI bank from 2015 to 2020
(3) MONEY CONTROLL website
(4) Google
(5) Wikipedia ( ICICI bank and SBI bank )

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