A Comprehensive Study On The Financial Performance Of Hdfc Bank With The Camel Model

Abstract

The banking sector is essential for economic growth since it mobilizes deposits, facilitates credit creation, and ensures financial stability. This research analyzed HDFC Bank's financial performance using the CAMEL framework Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity during the period from 2019 to 2024. The research used secondary data obtained from HDFC Bank's annual reports, publications from the Reserve Bank of India, and financial databases, which were examined using ratio and trend analysis. The findings demonstrated that HDFC Bank continually maintained robust capital sufficiency, with ratios above regulatory standards, while asset quality markedly improved post-pandemic, as seen by a reduction in non-performing assets. Earnings performance was constant, with consistent profitability and sufficient liquidity levels notwithstanding the increase of the balance sheet after the merger. The research determined that the CAMEL model is an efficacious instrument for assessing banking performance and offers significant insights for regulators, investors, and policymakers.