Camel Model Analysis

CAMEL model has been used as the most effective internal supervisory tool for also rating the performance of the financial institutions. In general application, the CAMEL rating technique defines the ratings and evaluation of the five criteria affecting to the bank’s inspection and control on the scale of 1 or A+ the best to 5 or C the worst, grading ratings scores in ascending order.

The ratings scores are as follows:

• Rating ‘1 or A+’ indicates the most financial sound and the safest banks in all aspects.

• Rating ‘2 or A’ indicates the safe and sound banks at general satisfactory level .

• Rating ‘3 or B’ indicates the risk exposure of the financial institution is significant, and requires management's ability to manage and control

The primary reason behind the selection of this approach is correlation among this theory and hypothesis. Findings will lead us towards the acceptance or rejection of hypothesis which weather there is significant difference between the working of the public and private sector banks or not in all five areas of CAMEL model.

3.8 Research Strategy: - Research Strategy means a general orientation of the conduct of social research. Two separate groups of research strategies are qualitative and quantitative research. The selection of quantitative research strategy is also based upon no. of facts other than presentation of the results in numeric values and figures. Our research is basically concerned with numbers, figures and use of different ratios in comparative form. As per the nature of our research, we have selected deductive approach which is commonly related with the quantitative research strategy with keeping in mind the hypothesis and objective of the study. We selected this strategy because it is assumed that it will be appropriate and will guide us in our research

For example if we want to construct a building it is essential that its base or structure should be cleared Similarly, social research requires a design or a structure before collection of the data and how data will be analyzed mean to say how data will be collected, measures, classification, tabulation and the analyses of the data. A good research design is not just a work plan. In fact it is work plan details what has to be done to complete the research properly. In other words while designing the research process, it is essential to ask according to this research question (or theory), what type of evidence is required to answer the given question or to test the theory in a conclusive way. There are various research types of research designs to work, our research design is exploratory in nature, we conclude that our study is comparative analysis of performance of the public and private sector bank through CAMEL rating is exploratory in nature which is usually concerned with exploring the general banking industry with respect to particular bank. The study is conducted to explore more clearly about the ratings of the public and private sector banks. This study will decisively ascertain answer the cause and effects.. In our study, we will find out the answers to our question whether there is significant