Financial Performance Analysis of an ABC Regional Cooperative Bank using the CAMEL Method

Abstract: This study assesses the financial performance of a regional cooperative bank using CAMEL framework over ten years (2013-2023). The analysis reveals strong capital adequacy and liquidity management, ensuring financial stability. However, high NPA levels and declining profitability pose challenges with gross NPA peaking at 23.56% in 2017-18 and ROA declining to 0.38% in 2022-23. While operational efficiency has improved, asset quality and income diversification require attention. Recommendations include strengthening credit risk management, optimising loan recovery and expanding digital banking. Addressing these issues enhance the bank’s sustainability and competitiveness in the evolving financial landscape. This analysis provides valuable insights for policymakers, regulators and stakeholders in cooperative banking, emphasizing the need for a balanced approach to financial sustainability and inclusive banking practices.

Keywords: CAMEL Method, Financial Performance, Co-operative Bank