Comparison of Public and Private Sector Banking Performance using CAMELS Framework

This study presents a comparison between the public sector and private sector banks in India using the CAMELS framework. The CAMELS methodology provides a broader view of bank performance than unidimensional ratios such as return on equity, particularly as it takes account of both profitability and risk factors in representing bank performance. The study uses CAMELS parameters as the basis for the comparison, using ANOVA tests. The results of the study suggest that the private sector banks perform better than their public sector counterparts. These results are statistically significant and consistent over the research period.