The banking sector plays a very important role in the country’s economy, therefore, the banking industry offer up to the national incomes and the global growth. It is imperative to assess, break down and screen the banking performance . Variety of methods was used to analyse the performance of banks and the most popular ways it eh CAMELS rating system, the banking supervision institution based on six factors to assess the registration of financial institutions. CAMELS represents the six rating factors, including capital adequacy, asset quality, management quality, profit and earnings, cash flow (liquidity), the sensitivity to market risk . The system score from 1 (best) to 5 (worst), if the bank overall rating is below 2, indicating that the
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It was found that private/foreign banks had higher Tier-I Capital than public sector banks, while public sector banks had higher Tier-II Capital than private/foreign banks. It was also found that private/foreign banks had higher Capital Adequacy Ratio than public sector banks. In particular, these differences were statistically significant in 2011.
2.ASSET QUALITY: Table 2 shows the Gross Non-performing Assets, Net Nonperforming Assets, and Net Non-performing Assets to Total Advances Ratio of public and private/foreign banks. It was found that public sector banks had higher Gross Non-performing Assets and Net Non-performing Assets than private/foreign banks, and that these differences were statistically significant. On the other hand, there was no significant difference in the Net Non-performing Assets to Total Advances Ratio of public and private/foreign …show more content…
It was found that private/foreign banks had higher Total Investments to Total Assets Ratio than public sector banks, while public sector banks had higher Total Advances to Total Deposits Ratio than private/foreign banks; however, these differences were not statistically significant. It was found that private/foreign banks had higher Sales per Employee than public sector banks, and that these differences were statistically significant. It was also found that private/foreign banks had higher Profit After Tax per Employee than public sector banks, but that these differences were not statistically significant.
4.EARNINGS AND PROFITABILITY: Table 4 shows the Return on Net Worth, Operating Profit to Average Working Fund Ratio, Profit After Tax to Total Assets Ratio of public and private/foreign banks. It was found that public sector banks had higher Return on Net Worth than private/foreign banks, and that these differences were statistically significant. On the other hand, it was found that private/foreign banks had higher Operating Profit to Average Working Fund Ratio and Profit After Tax to Total Assets Ratio than public sector banks, though the differences were not statistically
It was found that private/foreign banks had higher Tier-I Capital than public sector banks, while public sector banks had higher Tier-II Capital than private/foreign banks. It was also found that private/foreign banks had higher Capital Adequacy Ratio than public sector banks. In particular, these differences were statistically significant in 2011.
2.ASSET QUALITY: Table 2 shows the Gross Non-performing Assets, Net Nonperforming Assets, and Net Non-performing Assets to Total Advances Ratio of public and private/foreign banks. It was found that public sector banks had higher Gross Non-performing Assets and Net Non-performing Assets than private/foreign banks, and that these differences were statistically significant. On the other hand, there was no significant difference in the Net Non-performing Assets to Total Advances Ratio of public and private/foreign …show more content…
It was found that private/foreign banks had higher Total Investments to Total Assets Ratio than public sector banks, while public sector banks had higher Total Advances to Total Deposits Ratio than private/foreign banks; however, these differences were not statistically significant. It was found that private/foreign banks had higher Sales per Employee than public sector banks, and that these differences were statistically significant. It was also found that private/foreign banks had higher Profit After Tax per Employee than public sector banks, but that these differences were not statistically significant.
4.EARNINGS AND PROFITABILITY: Table 4 shows the Return on Net Worth, Operating Profit to Average Working Fund Ratio, Profit After Tax to Total Assets Ratio of public and private/foreign banks. It was found that public sector banks had higher Return on Net Worth than private/foreign banks, and that these differences were statistically significant. On the other hand, it was found that private/foreign banks had higher Operating Profit to Average Working Fund Ratio and Profit After Tax to Total Assets Ratio than public sector banks, though the differences were not statistically