Performance evaluation of new private sector banks using camel rating model

In a developing country like India, banking system plays a very important role. Banking system is considered as a backbone of an economy. Therefore, Performance evaluation of banking sector is necessary to ensure financial stability of an economy. This paper attempts to analyse the performance of selected new private sector banks in India, by using CAMEL rating model. It is observed that the private sector banks which were established somewhat earlier in comparison to others have reported better capital adequacy, better management efficiency, and better liquidity position and new entrants have displayed lagged performance both in the area of capital adequacy and liquidity.