The study is based on CAMEL methodology. It includes an analysis of the performance of 55 banks whose annual results for 2004-05 are available. Banks are classified into large medium and small categories based on total income size. Category-wise ranks are assigned based on aggregate average of ranks under each group of parameters under CAMEL.

The Analyst has come up with a special issue on the banking industry for a second consecutive year. To assess Indian Banks, The Analyst adopted the worldrenowned CAMEL model (with minor modifications). The reason being, the CAMEL model is simple and it makes it easy to compare a wide range of banks present in India. CAMEL stands for Capital Adequacy, Asset Quality, Management, Earnings Quality and Liquidity.

In this second consecutive banking special issue, The Analyst has ranked the banks in each parameter, based on the average individual rank a bank achieved for each ratio. Also, in this issue, The Analyst has categorized the banks into large, medium and small banks, based on their income. Large banks comprised those with the total income exceeding Rs. 2,500 cr. Medium-sized banks comprised banks with income ranging between Rs. 2,500 cr and Rs. 500 cr. Finally, small banks comprised banks with incomes of less than Rs. 500 cr.

The Analyst Magazine, Performance Snapshot 2004-05, CAMEL Methodology, Banking Industry, CAMEL Model, Asset Quality, Earnings Quality, Liquidity, Indian Economy, CMIE, Capital Adequacy Ratio, Debt-Equity Ratio, Corporate Advisory Services, Liquid Assets, Demand Deposits.