Examining the Financial Efficiency of Urban Co-Operative Banks in Kerala - A CAMEL Model Analysis

Urban cooperative banks play an essential role in the economic liberation of millions of people in our nation. It has emerged as a social and healthy banking institution providing need-based and quality banking services to the middle class and the marginalised sections of the urban population. Sound financial health is a guarantee to the depositor’s shareholders, employees and the economic system as a whole. In this study, an attempt is made to evaluate the financial performance of UCB using the CAMEL Model. This model mainly measures the bank’s performance from the five parameters: Capital Adequacy, Asset Quality, Management Efficiency, Earning Capacity, and Liquidity. The study is based on secondary data drawn from the annual report. For analysis, data over ten years are used. Statistical tools like average and standard deviation are used. It is found that the bank’s overall performance is satisfied with its asset quality being good. It was in a decent recovery position, but its financial condition in terms of capital adequacy, liquidity, earning rate, and management efficiency metrics was shabby, needing quick intervention.