Compare of Public and Private Sector Bank
A PROJECT ON COMPARISION OF PUBLIC BANKS AND PRIVATE BANKS WITH CAMEL METHODOLOGY
SUMBITTED TO:-
Prof. AMIT BHATTACHARYA
SUBMITTED BY:-
NIKITA DESAI.
FARNAZ KAZI.
MITTAL LAD.
BHAVISHA MISTRY.
VARSHA NANDA.
RITA PATIL
Abstract
What are the trends observed in the performance of Public Sector and Private Sector Banks? How do they perform when compared across the critical component of Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality, Liquidity and Sensitivity to Market? A modest effort to compare public and private sector banks on the basis of six such crucial components
OBJECTIVES OF STUDY
➢ To do an in-depth analysis of the model.
➢ To analyze 6 banks to get the desired results by using CAMELS as a tool of measuring performance.
LIMITATIONS OF THE STUDY
➢ The study was limited to six banks.
➢ 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.
➢ It has not been possible to get a personal interview with the top management employees of all banks under study.
Public Sector Banks
Public sector banks are the ones in which the government has a major holding. They are divided into two groups i.e. Nationalized Banks and State Bank of India and its associates. Among them, there are 19 nationalized banks and 8 State Bank of India associates. Public Sector Banks dominate 75% of deposits and 71% of advances in the banking industry. (Indian financial system)
Private Sector Banks
Private sector banks came into existence to supplement the performance of Public sector banks and serve the needs of the economy better. As the public sector banks were merely in the hands of the government, banks had no incentive to make profits and improve the financial health. Nationalized killed competition and stifled competition in banking.
SUMBITTED TO:-
Prof. AMIT BHATTACHARYA
SUBMITTED BY:-
NIKITA DESAI.
FARNAZ KAZI.
MITTAL LAD.
BHAVISHA MISTRY.
VARSHA NANDA.
RITA PATIL
Abstract
What are the trends observed in the performance of Public Sector and Private Sector Banks? How do they perform when compared across the critical component of Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality, Liquidity and Sensitivity to Market? A modest effort to compare public and private sector banks on the basis of six such crucial components
OBJECTIVES OF STUDY
➢ To do an in-depth analysis of the model.
➢ To analyze 6 banks to get the desired results by using CAMELS as a tool of measuring performance.
LIMITATIONS OF THE STUDY
➢ The study was limited to six banks.
➢ 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.
➢ It has not been possible to get a personal interview with the top management employees of all banks under study.
Public Sector Banks
Public sector banks are the ones in which the government has a major holding. They are divided into two groups i.e. Nationalized Banks and State Bank of India and its associates. Among them, there are 19 nationalized banks and 8 State Bank of India associates. Public Sector Banks dominate 75% of deposits and 71% of advances in the banking industry. (Indian financial system)
Private Sector Banks
Private sector banks came into existence to supplement the performance of Public sector banks and serve the needs of the economy better. As the public sector banks were merely in the hands of the government, banks had no incentive to make profits and improve the financial health. Nationalized killed competition and stifled competition in banking.