FINANCIAL PERFORMANCE OF BANK — A TAXONOMIC APPROACH BASED ON CAMELS PARAMETER & ITS MAJOR DETERMINANT

This study utilized the ‘CAMELS’ parameter as identified by Narashimam Committee to judge the financial performance of selected 40 banks during the study period 2006 to 2018. Key parameters considered here to judge the financial performance of banks are Capital Adequacy Ratio (CAR), Non-performing Assets (NPA), Return on Assets (ROA), Return on Equity (ROE), Return on Investment (ROI), Cost of Deposits (COD), Net Interest Margin (NIM), Burden-asset ratio (BAR) and Credit-deposit Ratio (CDR). This paper has constructed a performance index of selected banks using Taxonomic approach. Constructed Financial performance index of these banks are regressed on following parameters, namely, bank size (Log assets), Interest income-loan ratio, Non-interest expenses-asset Ratio, equity-asset ratio to judge whether financial performance of banks depend on bank size, operating efficiency, nonbanking performance and solvency of these banks. Results showed that capital adequacy ratio continued to be very high for foreign banks in comparison with private banks. CAR of public sector banks were usually in the lower side. Public Sector banks have more NPA and foreign banks have low level of NPA in India. This study inferred that desperate credit-mobilization drive may be detrimental for financial performance of banks. Panel regression estimate had inferred that financial performance of these banks has improved with the increase in size of banks as well as equity holding of these banks. Expenses other than interest had affected the financial performance adversely though interest incomes of these banks did not have any impact on performance of these banks.

本研究采用纳拉辛哈姆委员会（Narashimam Committee）认定的CAMELS参数，对2006年至2018年研究期间内的40家样本银行的财务绩效进行评估。本次评估所采用的核心财务指标包括：资本充足率（Capital Adequacy Ratio, CAR）、不良资产（Non-performing Assets, NPA）、资产收益率（Return on Assets, ROA）、净资产收益率（Return on Equity, ROE）、投资收益率（Return on Investment, ROI）、存款成本（Cost of Deposits, COD）、净息差（Net Interest Margin, NIM）、负担资产比率（Burden-asset ratio, BAR）以及存贷比（Credit-deposit Ratio, CDR）。本文采用分类学方法构建了样本银行的绩效指数，并将构建得到的银行财务绩效指数与以下变量进行回归分析：银行规模（对数资产）、利息收入-贷款比率、非利息支出-资产比率、股权-资产比率，以此检验银行财务绩效是否与银行规模、运营效率、非银行业务表现及偿债能力相关。研究结果显示，外资银行的资本充足率显著高于民营银行；国有商业银行的资本充足率普遍处于较低水平。印度的国有商业银行不良资产规模较高，而外资银行的不良资产水平较低。本研究推断，过度的信贷动员举措可能对银行财务绩效产生不利影响。面板回归估计结果表明，随着银行规模及股权持有量的提升，样本银行的财务绩效均有所改善。除利息支出外的其他费用对银行财务绩效产生了显著负面影响，而样本银行的利息收入则未对其绩效产生显著影响。