2023-24

Permanent URI for this collection

http://192.168.75.5:4000/handle/123456789/18246

Browse

Browsing 2023-24 by Author "AGNEYA 1NH22BA003"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Study on comparison of private and public sector banks using camels approach
    (NHCE, 2025) AGNEYA 1NH22BA003
    Study on comparison of private and public sector banks using camels approach This study conducts a comprehensive comparison of HDFC Bank and SBI Bank using the CAMELS framework, which evaluates banks based on capital adequacy, asset quality, management quality, earnings strength, liquidity situation, and market risk sensitivity. HDFC Bank exhibits good capital adequacy, which is underpinned by sustained profitability and efficient capital management methods, hence contributing to its strong resilience to financial shocks. Its superior asset quality is demonstrated by lower non-performing asset (NPA) levels, which indicate effective credit risk management and cautious lending methods. HDFC Bank's management quality is defined by strategic decision-making, operational efficiency, and excellent governance, resulting in superior profitability indicators than SBI Bank. SBI Bank, despite receiving government assistance and having a large branch network, suffers asset quality management issues with increased NPA levels as a result of its significant exposure to many economic sectors. Despite these issues, SBI Bank maintains adequate capital buffers and liquidity, owing to its systemic importance and access to public deposits. Both banks are resilient to market risks, with HDFC Bank displaying lesser susceptibility due to its diverse portfolio and aggressive risk management methods, while SBI Bank handles market volatility through strong asset-liability management techniques. Recommendations include improving SBI Bank's asset quality through better credit risk assessments and increasing HDFC Bank's operational efficiency further. While both should improve their governance mechanisms to ensure transparency and regulatory compliance. Finally, this study demonstrates HDFC Bank's overall superior performance across the CAMELS criteria compared to SBI Bank, stressing the necessity of strategic management and risk mitigation methods in ensuring long-term profitability and stability in the banking industry. This study uses the CAMELS framework to undertake a complete comparison analysis of HDFC Bank and SBI Bank, two major players in the Indian banking industry. Capital Adequacy: Both banks have high capital adequacy ratios, indicating good financial health and compliance with regulatory requirements. HDFC Bank has a strong capital foundation through steady profitability, but SBI Bank benefits from government backing and strategic capital injections. Asset Quality: HDFC Bank outperforms SBI Bank in asset quality metrics, with lower non-performing asset (NPA) levels as a result of tight credit assessment processes and conservative lending practices.