Article
A STUDY ON FINANCIAL PERFORMANCE OF SBI BANK USING CAMELS FRAMEWORK
This study uses the CAMELS framework—which stands for Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity—to assess the State Bank of India's (SBI) financial performance for FY 2024. The analysis, which was based on secondary data from SBI's audited annual report, showed "Excellent" asset quality with a Net NPA of 0.57% and a "Good" capital position with a CAR of 14.28%. However, a high operating expense-to-income ratio of 55.67% resulted in a "Poor" ranking for management quality. With a ROE of 16.19% and a ROA of 0.99%, the earnings were mediocre. Sound financial management was demonstrated by the "Good" ratings for liquidity and sensitivity measures. Overall, SBI showed strength in liquidity, capital, and asset quality, but it struggled with operational efficiency. To improve overall performance, the report suggests portfolio diversification, capital strengthening, and expense reduction.
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