Ratio-Based Financial Performance Analytics for Different District Central Cooperative Banks: CAMEL MODEL

Abstract

The present research study explores the financial performance of five district central cooperative banks (DCCBs) in Gujarat. Here use secondary and quantitative approaches for the investigation of the survey where secondary data is utilized from their annual reports to calculate various ratios under the CAMEL framework. The banks under study include SDCCB, MDCCB, ADCCB, SUDCCB, and RDCCB. The CAMEL model, which evaluates Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity, provides a comprehensive view of each bank’s financial health. The present research study’s analysis based on data spanning the past 10 years, reveals diverse bank performance patterns. SDCCB stands out for its superior capital strength and liquidity, showing high levels of financial stability. On the other hand, MDCCB, while demonstrating strong earnings potential, faces challenges with asset quality, raising concerns about non-performing assets. ADCCB consistently performs well in operational efficiency and liquidity, making it a steady performer, while SUDCCB excels in asset quality but struggles with higher operational costs. Lastly, RDCCB presents a balanced but unremarkable financial profile, with solid but unspectacular results in all areas. Overall, the study highlights both the strengths and areas for improvement among Gujarat’s DCCBs, offering insights for stakeholders to enhance financial stability and performance in this crucial sector.