Financial Calibration of Indian Banks during Pre and Post Crisis Period: A Study Based on CAMEL Framework

This paper deals with the financial calibration of the Indian banks during pre-crisis period and post crisis period. The study covers SBI and its associates, Nationalized Banks, Private Banks and Foreign Banks operate in India. CAMEL approach has been used for the analysis of the financial soundness of the banks. The total study period i.e. from 2002 to 2013 has been divided into pre-crisis period which covers form 2002 to 2007 and post crisis period which covers from 2008–2013. To check whether there is any significant difference between mean CAMEL ratios of the different bank group we applied one way ANOVA and its result shows that financial performance of the Indian banks are statistically equal during both the pre-crisis and post- crisis period. Researchers applied paired ‘t’ test to analyze the difference between the financial performance of pre-crisis period and the financial performance of the post-crisis period. The results of the analysis revealed that the financial performance of the Indian banks neither impaired nor improved significantly during post-crisis period. This ensures the stability of Indian banks.