“Capital Adequacy of Select Public and Private Banks in India-A comparative study’’

Banking sector is one of the fastest growing sectors in India. Today's banking sector becoming more complex. Evaluating Indian banking sector is not an easy task. There are so many factors, which need to be taken care while differentiating good banks from bad ones and it is also necessary to know their financial strength among various banks. To evaluate the financial strength of banking sector we have chosen the Capital Adequacy from CRAMEL model which measures the financial strength of banks. The Correlation result shows that there is a significant correlation between ratios of Government Securities to Total Investment and Debt-Equity ratio and ratio of Government Securities to Total Assets and ratio of Government Securities to Total Investment at 5% level of significance for the public sector banks and there is a significant relationship between the ratio of Advances to Total Assets and Debt-Equity ratio and Capital Adequacy at 1% level for private banks in India.