PERFORMANCE OF INDIAN BANKING SECTOR WITH REFERENCE TO CAPITAL ADEQUACY RATIO UNDER BASEL NORMS - A STUDY OF SELECTED BANKS.

The Indian Banking has seen momentous changes in the post-independence era. The operating environment of banks in India has been gradually changing from the last decade. With the adoption of Basel norms, the performance of banks in India is reviewed after taking the capital adequacy ratio of banks selected for study. For this study, five banks from each sector (public sector banks, private sector banks, foreign sector banks) is selected. Performance of banks is measured on the basis of only four criteria selected: Capital Adequacy Ratio, N.P.A., Business per employee and Profit per employee. Overall, the analysis supports the conclusion that foreign owned banks are on average performs better as compare to other sector banks.