H&N Publications INTERNATIONAL

International Journal for Asian Contemporary Research, 1(4): 170-176

Research Article

Performance Evaluation using CAMELS Model: A Comparative Study on Private Commercial Banks in Bangladesh

Saiful Islam*,
Saiful Islam*,

*Department of Business Administration, City University, Dhaka, Bangladesh. Email: [email protected]

Mohammad Sabbir Hossain
Mohammad Sabbir Hossain

Department of Finance and Banking, Patuakhali Science and Technology University, Patuakhali, Bangladesh

and Sanjoy Kumar Roy
Sanjoy Kumar Roy

General Education Department, City University, Dhaka, Bangladesh


Received: 16 November, 2021 ||  Accepted: 05 December, 2021 ||  Published: 06 December, 2021

 

A b s t r a c t

Bank is very aged organization that is contributing toward the improvement and development of any countries economy and given so crucial importance in modern world’s service industry. The banking segment is the mainstay of any economy. The present study is an attempt to gauge and compare the performance of the banking sector through CAMELS Rating System. In this study, thirteen conventional private commercial banks have been chosen as samples to meet the purpose of the study. Data has been collected from the banks’ annual reports for the period of 2016 to 2018 and the market disclosure. The findings from this research study showed that NCC Bank was at the top position on the basis of CAMEL rating system among all sampled banks. It is found that on an average the Capital Adequacy ratio of all banks is much higher than the benchmark of 10% as mandated by Bangladesh Bank. The average Capital Adequacy Ratio (CAR) and profit per employee (PPE) of Meghna Bank is the highest and the efficiency of this bank is also much higher compared to other banks. Again the NPLs of Uttara Bank (6.33%) is higher than other banks. Estimating the profitability ratios, it can be observed that for long-term period, Uttara Bank’s profitability is outstanding on an average as compared to other banks. However, the discoveries from this paper will absolutely help the researchers and analysts to understand financial statement analysis in a deepness manner and also provide a uniform basis for identifying those institutions requiring special supervisory attention.

 

Keywords: Bank, CAMELS, Performance Evaluation and Bangladesh.

 

Copyright information: Copyright © 2021 Author(s) retain the copyright of this article. This work is licensed under a Creative Commons Attribution 4.0 International License


    To cite this article: Islam, S., Hossain, M.S., and Roy, S.K. (2021). Performance Evaluation using CAMELS Model: A Comparative Study on Private Commercial Banks in Bangladesh. International Journal for Asian Contemporary Research, 1 (4): 170-176.  

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