Volume 2 - Issue 1, January - February 2026

Banks play an important role in the financial system and the success of any economy largely depends upon the efficiency of banking system. The financial parameters have achieved new heights and international benchmarking isaccepted. The CAMEL model is a widely used supervisory and analytical framework for evaluating the financial performance and stability of banks and financial institutions. Regulators and analysts use the model to identify potential weaknesses, support regulatory oversight, and promote sound banking practices. Overall, the CAMEL model serves as an effective tool for monitoring financial health and ensuring the resilience of the banking system. Apart from the parameters included in internationally renowned CAMEL model, two more parameterssuch as Resource Deployed and Social Performance are included in the modified model, which are used to assess the financial soundness of the banking units, and is known as CRAMELS.

Dr. Anand K,"Cramels Model of Performance Evaluation of Banks" International Journal of Scientific Research and Engineering Development, V2(1): Page(433-438) Jan-Feb 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.