Analysis and Performance of Public & Private Sector Banks in India through CALS Rating System

International Journal of Economics and Management Studies

© 2018 by SSRG - IJEMS Journal

Volume 5 Issue 6

Year of Publication : 2018

Authors : Vadumula Srija, Dr.R.K.Kushwaha

10.14445/23939125/IJEMS-V5I6P106

How to Cite?

Vadumula Srija, Dr.R.K.Kushwaha, "Analysis and Performance of Public & Private Sector Banks in India through CALS Rating System," SSRG International Journal of Economics and Management Studies, vol. 5,  no. 6, pp. 44-52, 2018. Crossref, https://doi.org/10.14445/23939125/IJEMS-V5I6P106

Abstract:

In now a day the banking sector is one of the fastest growing sectors and many funds are invested in Banks. Also today’s banking system is becoming more complex. So, we thought of evaluating the performance of the banks. There are so many models of evaluating the performance of the banks; CALS Rating has been considered as one of the widely used tools for judging capital adequacy, asset quality, management capacity, earnings ability, and liquidity of the financial institutions including commercial banks by the principal regulators all around the world. This paper examines the comparative performance of leading public and private sector banks, i.e. Axis Bank and Kotak Mahindra Bank from Private Sector and Bank of Baroda and State Bank of India from the public sector. Data have been collected though annual reports of the consecutive five years i.e. 20010-11 to 2016-17 of all the banks. Then calculated ratios for all the banks and interpreted them. After that weight age was assigned to each parameter of the CALS Model. According to their importance and understandings the weight age were allocated to each ratios of the each parameter. From the weighted results of each ratio, The marks have allocated on the bases of the performance of the bank. In addition, after addition of all the marks, the rank to the banks was given

Keywords:

CALS Rating System, Performance Analysis, Capital Adequacy, Assets Quality etc.

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