Financial Performance Evaluation of Selected Small FinanceBanks ‎in India: A CAMEL Model Approach

Authors

  • Sagarika Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India
  • Rupesh Roshan Singh Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India
  • Daniel Frank Manipal School of Commerce and Economics, Manipal Academy of Higher Education, Manipal, India
  • Ramona Birau University of Craiova, Doctoral School of Economic Sciences ”Eugeniu Carada”, Craiova, Romania and Constantin Brâncuși” University of Târgu Jiu, Faculty of Economic Science, Tg-Jiu, Romania
  • Virgil Popescu Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania
  • K Sudhir Prabhu Chartered Accountant, DTS Associates, India
  • Roxana-Mihaela Nioata (Chireac) University of Craiova, Doctoral School of Economic Sciences ”Eugeniu Carada”, Craiova, Romania
  • Gabriela Ana Maria Lupu (Filip) University of Craiova, Doctoral School of Economic Sciences ”Eugeniu Carada”, Craiova, Romania

DOI:

https://doi.org/10.14419/3yxpd889

Keywords:

CAMEL Framework; Capital Adequacy; Financial Performance; Non-Performing Assets; Small Finance Banks

Abstract

It is of utmost importance to monitor the financial performance of banks to ensure that they are adhering to regulatory compliance guidelines set by the Reserve Bank of India. Small finance banks fall under the niche category of banks that are established in order to pro-‎mote financial inclusion. Capital Small Finance Bank is the first bank that was licensed as an SFB in 2016. Currently, there are 11 small fi-‎finance banks licensed by the RBI. Recently, Fincare SFB was merged with AU SFB. This study is going to measure the financial performance ‎of all 11 small finance banks on the basis of the CAMEL model framework, which includes the parameters of capital adequacy, asset quality, ‎management efficiency, earnings, and liquidity. Various financial indicators have been used to comprehensively analyse all the parameters. ‎Secondary data has been collected for the year 2024 from the RBI’s database and annual reports of all the SFBs. Ranking method and ANOVA ‎have been used for research analysis. It finds out that the overall performance of Capital SFB and ESAF SFB has been the best; however, North ‎East SFB has to work vigorously on its Asset quality and its management efficiency‎.

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Published

08-01-2026

Issue

Vol. 13 No. 1 (2026)

Section

Articles

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How to Cite

Sagarika, Singh, R. R. ., Frank, D. ., Birau, R., Popescu, V. ., Prabhu, K. S. ., (Chireac), R.-M. N., & (Filip), G. A. M. L. . (2026). Financial Performance Evaluation of Selected Small FinanceBanks ‎in India: A CAMEL Model Approach. International Journal of Accounting and Economics Studies, 13(1), 39-46. https://doi.org/10.14419/3yxpd889