The document compares Punjab National Bank (PNB) and ICICI Bank across various financial metrics known as CAMEL parameters: Capital Adequacy, Asset Quality, Management, Earnings, and Liquidity. The analysis finds that while ICICI Bank generally performs better than PNB on indicators like NPA levels and profitability, PNB outperforms on metrics like business per employee, indicating more efficient use of resources. Overall, the study concludes that public sector banks like PNB have shown better financial health than private banks, though ICICI Bank has relatively stronger performance compared to other private lenders.

1. Submitted By :
KURRA RANGA NAIK

2. PNB AND ICICI
• Punjab National Bank is an Indian multinational banking and
financial services company. It is a state-owned corporation
based in New Delhi, India. Founded in 1894, the bank has over
6,968 branches and over 9,656 ATMs across 764 cities. It
serves over 80 million customers
• ICICI Bank is an Indian multinational banking and financial
services company headquartered in Mumbai, Maharashtra,
India, it was the second largest bank in India in terms of assets
and third in term of market capitalization. The bank has a
network of 4,450 branches and 13,995 ATMs in India, and has
a presence in 19 countries including India

3. CAMELAPPROACH
• In the 1980s, CAMEL rating system was first introduced by
U.S. supervisory authorities as a system of rating for on-site
examinations of banking institutions.
• The composite rating ranges between 1 (best) and 5 (worst),
and also involves a certain amount of subjectivity based on the
examiners‟ overall assessment of the institution in view of the
individual component assessments

4. Capital Adequacy
• Capital adequacy is an ultimate indicator of overall financial health of the
banking system.
• It is measured by the Capital to Risk - Weighted Assets Ratio (CRAR)

5. Interpretation
Capital adequacy Ratio :
Analysis : As per Rbi given minimum CAR is 8.83 percentage
maintain every bank If its 10% its safe par the bank , above the
table both the banks are risk compare to pnb Icici is more risk the
given money more out siders
Capital Adequacy Ratio 2016 2015 2014 2013 2012
PNB 11.28 12.89 12.11 12.72 12.63
ICICI 16.64 17.02 17.7 18.74 18.52

6. Net Balance Sheet Position to Equity: NBSP/E
Analysis : every
financial year
the calculating
the net balance
position of the
banks, I already said that above
the tables icici its good position regulating good
and safer site they have good amount of money
doing good

7. Asset Quality
• The asset quality is to ascertain the proportion of nonperforming as
a percentage of the total assets. It also ascertains the NPA movement
and the amount locked up in investment as a percentage of the total
assets
i) Net NPA
Analysis: Asset quality we see the banks NPA if npa is more its means bank given more
money to outsiders if less NPA it means bank have good position or bank is not given money
to outsiders As per above table says that icici is less NPAs has compared to PNB ,ICICI bank
have good position recovering the loan amount
% of Net NPA 2016 2015 2014 2013 2012
PNB 8.61 4.06 2.85 2.35 1.52
ICICI 3.35 2.98 2.28 1.65 1.58

8. Gross NPA
Analysis : Gross NPA (non-performing asset) refers to overall quantity of
loans that have gone bad .above the table says that it means pnb is given the
much more loans to outsiders the have more risk to recollecting the loan
amount ,ICICI is a good position of the recollecting the bed loans .
NPAAdvance
Analysis : The net NPA to loans (advances) ratio is used as a measure of the overall
quality of the bank's loan book. An NPA are those assets for which interest is overdue
for more than 90 days (or 3 months). Pnb bank has more due compare to the ICICI
bank
%GROSS NPA 2016 2015 2014 2013 2012
PNB 12.9 6.55 5.25 4.27 2.93
ICICI 5.87 5.82 4.72 3.77 3.68
Net NPA Advance (%) 2016 2015 2014 2013 2012
PNB 9 4 3 2 2
ICICI 3 2 1 1 1

9. Management Quality:
• The management dimension in CAMEL analysis has assumed much
important position like never before To capture the possible dynamics of
management efficiency affecting the financial performance of the banks the
following ratios are considered.
• i. Market Value to Equity Capital, ii. Total Advances to Total Deposits.
iii.Business per Employee, iv. Profit Per Employee

10. i) Profit per Employee
Analysis : The study found that maximum profit per employee of ICICI bank
is Rs. 10 lakhs in 2016-2015. It has constantly maintained its profit better than
other selected banks and this shows the quality of work force with ICICI bank
which has increased the profit year on year. The maximum amount of profit
that the employee generates would determine the skill sets of the employee as
well as the HR policies of the bank. Good HR policies would benefit the banks
with respect to the profit increment
Profit per Employee 2016 2015 2014 2013 2012
PNB 8.58 9.07 9.3 9.87 9.75
ICICI 9.98 9.88 9.65 9.58 9.33

11. ii) Business per Employee :
Analysis : pnb bank employees are doing good job as compare to icici banks pnb it’s
a public sector bank they need customers that way bank employees are doing they
great job as compare to icici bank employees
iii) Personnel Expenses to Other Operating Expenses
Analysis : Positive NIM reflects that banks management have taken care of the
capital structure and largely employed cheaper form of debt to avoid risk and to
maintained profitability and liquid
Business per Employee 2016 2015 2014 2013 2012
PNB 5.07 5.17 5.27 5.79 5.52
ICICI 4.62 4.84 4.9 5.19 5.18
Pex/OEx 2016 2015 2014 2013 2012
PNB 4.594591 4.274986 4.312541 4.589164 4.55343
ICICI 6.291448 5.705127 5.1186 4.477337 3.901809

12. iii)Total Assets to Total Deposit:
Analysis: The study shows the investment of the bank through approving the loans
against accepting the loan in PNB has continuously improved year by year, Banks
“ICICI, have more or less constant. For smooth survival banks have to make
balance growth in TA / TD. One side growth will lead to risk, as have to pay return
on deposit and also making advance and investment with minimum risk of NPA.
v) Funds Borrowed to Total Assets :
TA/TD 2016 2015 2014 2013 2012
PNB 1.206742783 1.203349229 1.219370587 1.222997667 1.20708089
ICICI 1.710135578 1.787046165 1.791555009 1.83448283 1.85380495
FB/TA 2016 2015 2014 2013 2012
PNB 0.63 0.53 0.65 1.02 1.17
ICICI 1.43 1.8 1.73 1.65 1.47

13. Earning Efficiency
• For smooth survival earning efficiency is important for all economic activities.
In bank’s most of the income is earned through non-core activities like
investments, treasury operations, and corporate advisory services and so on and
thus require high degree of efficiency in all regards
i)ROE
Analysis : The study found that all selected banks have positive profit after tax in
2012-11 and generated revenues. Comparatively ICICI bank has better percentage
than other banks that is 20.35% which shows that it has efficiently used its assets
than other banks and generated better percentage revenue. Followed by PNB
ROE 2016 2015 2014 2013 2012
PNB 9.20 8.64 10.14 16.21 20.35
ICICI 12.42 16.07 16.09 15.58 13.62

14. • ROA
Analysis : ICICI bank earing much more profits as compare to PNB
bank they have less NPA that way bank have a sold position to give
loans to outsider they re locating amount it also be they understand
they market very well that way making profits
ROA 2016 2015 2014 2013 2012
PNB 0.55 0.54 0.66 1.02 1.16
ICICI 1.25 1.64 1.64 1.57 1.38

15. Liquidity:
Liquidity in general term means ability to realize value in money,
the most liquid of assets. It refers to the ability to pay in cash, the
obligations that are due. It is divided in two parts that is
qualitative and quantitative.

16. I) Current Ratio :
Analysis : current assets of icici bank is more amount of money compared pnb bank
ii) Quick Ratio :
Analysis : in current ratio icici have more money but in quick ration pnb
have more asstes as compare to icici bank , pnb is given they much
amount money to outsiders though amount money is easily converted to
cash
Current Ratio 2016 2015 2014 2013 2012
PNB 3 2 2 2 2
ICICI 13 6 9 9 7
Qick Ratio 2016 2015 2014 2013 2012
PNB 28.09 24.23 25.19 22.4 23.81
ICICi 14.97 13.81 11.31 10.53 16.71

17. Conclusion
• Since liberalization and globalization the Indian banking sector
has come a long way, a hallmark of which has been the coming
of age of the Public Sector Banks, in particular. This study
revealed that public sector commercial banks have performed
remarkably better on every CAMEL parameter in comparison
to their private competitive banks. As far as private sector
banks are concerned ICICI banks has shown better
performance and outperformed other private sector banks but
lag behind public sector commercial banks.