2025, Vol. 8, Issue 2

author(s)
R Raghavendra Rao and Chilumuri Srinivasa Rao

abstract
Public rely mostly on banks for depositing their money and banks do not need any introduction. They are the most important organs of Indian financial body and the effective functioning of banking system will ensure the proper health of the economy. Besides an economic institution, they are also the trustees for the money kept by the public based on trust and belief. The fail of banks in providing liquidity and safety to the deposits will impact on the entire functioning of economy and cause the deterioration of welfare and prosperity of the country. The financial performance analysis of an organization will indicate the areas of strong (AOS), areas of weak (AOW) and areas of improvement (AOI). Banks are special and exceptional for assessment of the financial performance as it is not a commercial kind of entity for regular analysis. It is very important to analyze the performance of the banks from time to time to know the problems or issues to be addressed in future to avoid the jeopardy. The central bank - RBI, has master role in supervising the activities of the banks on timely basis for taking preventive and corrective actions in response. All stakeholders expect a better financial performance of banks as it is linked with their interests and economy. It is equally important to researchers in the domain of banking to evaluate the performance of banks on various accepted models and reporting the same through research articles / papers/presentations on different platforms. It has many metrics, indicators that are to be deeply studied, correlated and relative values to be analyzed. The present paper is first of its kind in evaluating the financial performance of select banks of NIFTY index using a model named as CAFRM the findings and suggestions extracted from the analysis are incorporated in the relevant sections.