Low risk and high return is the only basic aim of any investor. Through CANSLIM approach, this goal can be achieved easily. CANSLIM approach was first discussed by O’Neil in the US for investment purpose and also for investor protection. It is a growth stock investment strategy which involves implementation of both technical analysis and fundamental analysis. It is also an approach which helps the investor to select the best stocks among others to book profits. The present study focuses on how to examine and understand the financial position and better investment strategy in any bank through the CANSLIM approach. The paper also makes an attempt to determine whether there is some correlation between the financial performance of the bank and its stakeholders’ relationship with investment. For this purpose, an analysis of 10 banks—four from private sector, four from public sector and two from SBI group—which are listed on the stock exchanges of India and have a good reputation among investors, was done. A performance ranking model was applied to identify the best performing bank among the 10 banks on the basis of CANSLIM approach and its parameters. For this purpose, the data pertaining to the quarter ended March 2007 to the quarter ended March 2008 was used.

The financial sector reforms worldwide have brought many changes in the structure of the financial markets, particularly the banking sector. Banking prior to the 1990s and banking today is a perfect study in contrast. Yesterday’s compulsion no more appears in today’s priority. Today, banks are subject to extensive competition. This forces banks to allocate their resources more efficiently and effectively without deviating from the rules laid by the regulator. The pressure on banks to maximize the value of the shareholder is no less than any other industry which forces the banks to adopt strategies which enhance shareholder value. It also keeps in mind the long-term profitability. Measuring the performance of an Indian bank has always been a very tedious task.

Bank Management Journal, Indian Banks, Asset Liability Management, Data Filtering, Least Absolute Deviation, Decision-Making Group, Commercial Banks, Ordinary Least Square, Banking Industry, Kenyan Banks, Least Squares Regression, Mutual Fund Industry, Linear Programming, Financial Markets, Capital Required Adequacy Ratio, Public Sector Banks.