ABSTRACT

Financial institutions are paramount tools in economy to boost the economic growth, especially banks are one of them. After the economic reforms 1991, Liberalization, privatization, globalization (LPG) growth of private sector banks increase tremendously. Private Banks contributes significantly in growth of economy. Initially banks are only limited to deposits and credits but today banks are perform various functions. Before to privatization of banks all financial needs of corporate and individual are meet by public sector banks but after privatization private sector banks also not behind the public sector banks to provide the credit facilities and other non banking services to individual and corporate. Many studies revels that private sector banks are better perform to public sector bank in terms of NPA management, profit making and other so more. To know the financial performance of private sector banks present study is conducted. In present study, researcher takes a sample of 5 private sector banks namely ICICI Bank, Axis Bank, HDFC Bank, Yes Bank, Indusland Bank and try to understand and analysis the financial performance and soundness of selected private sector banks during 2011-2016 through CAMEL methodology. CAMEL is an acronym where C- Capital Adequacy, A- Assets Quality, M- Management Efficiency, E- Earning Efficiency, L- Liquidity. Data used in study purely in secondary nature and collected from annual reports of respective banks, journal articles and other published documents.

Keywords: Indian private sector banks, financial performance, CAMEL