Evaluating Performance of Private Sector Banks HDFC & ICICI: An Application of Camel Model with Capital & Earning Parameter

Indian banking system has transformed in recent years due to globalization in the world market, which has resulted in fierce competition. In this article, an attempt has been made to find out the difference between the two private sector banks namely at HDFC & ICICI. Various commercial banks operating in India. The banks in India have been categorized into Public sector, Private sector and foreign banks. For the purpose of profitability analysis, for comparing capital adequacy we have selected samples of two private sector banks by applying CAMEL analysis technique. Only two parameter of CAMEL
have been selected for research and i.e. capital adequacy and earnings from the Capital Adequacy, Asset Quality, Management Quality, Earning Quality and Liquidity. In the two private sector banks data we have applied t-test to measure its performance efficiency. As per the derived data, we can say that in net profit margin and return on asset we have acceptance of the null
hypothesis, as it is saying that there is no significance level of difference between the two selected samples. On the other side for CAR, Return on Net Worth, Return on Long Term Fund, is having the rejection of null hypothesis as it is saying that there is significance of difference between two selected samples.