Evaluating Performance of Scheduled Commercial Banks in the Marathwada Region:An Application of the CAMEL Model

This empirical study evaluates the financial performance of selected Scheduled Commercial Banks (SCBs) operating in the Marathwada region of Maharashtra, India using the CAMEL model framework. The CAMEL model — encompassing Capital Adequacy, Asset Quality, Management Efficiency, Earnings Performance, and Liquidity — is a globally recognized technique for appraising bank soundness and operational efficiency. This paper uses secondary financial data from bank annual reports and Reserve Bank of India (RBI) disclosures over a five-year period (2019–2023) to compute ratio indicators for each CAMEL dimension. The objective is to compare performance across banks, highlight strengths/weaknesses, and draw implications for regulators and practitioners. Findings indicate that while capital buffers and liquidity positions remain robust, asset quality and profitability show significant variation among institutions. The study also suggests region-specific challenges influencing bank performance such as rural credit risk, NPA levels and operational scale. The results contribute to banking performance literature and offer managerial insights for stakeholders.