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Abstract

Private Banks play a significant role in India’s financial landscape. In the 1990s, the

government embarked on a policy of liberalisation, licensing a small number of

private banks. Private sector banks have since then steadily expanded their branch

network, improving their presence. These banks have changed the banking

experience in India by focusing on customers and higher efficiency. In this Paper,

an attempt has been made to conduct a comparative analysis of the performance of

Private Sector Banks. For this purpose, 20 Private Sector Banks have been

chosen. The CAMEL Approach has been used to conduct the performance

appraisal. CAMEL stands for Capital Adequacy, Asset Quality, Management Quality,

Earning Quality and Liquidity. Comparative ranking have been given to the banks

on each of these 5 parameters using two ration each. A final ranking is done on a

basis of the Composite Index calculated at the end. Based on these ranking ,

HDFC Bank has been ranked as the best bank , followed by Yes Bank and Axis

Bank.