Analysis of Financial Performance Pre and Post Use of Artificial Intelligence Applications Via CAMELS Lens: With Special Reference to HDFC Bank

Authors

  • Mamta Gupta Associate Professor, Maharaja Surajmal Institute of Technology, GGSIP University, New Delhi, India
  • Neha Garg PhD Research Scholar, Bharati Vidyapeeth (Deemed to be university) Institute of Management and Research, New Delhi, India
  • Neetu Jain Assistant Professor, Bharati Vidyapeeth (Deemed to be university) Institute of Management and Research, New Delhi, India
  • Pankaj Saini Assistant Professor, Bharati Vidyapeeth (Deemed to be university) Institute of Management and Research, New Delhi, India
  • Sanjoy Roy Assistant Professor, Bharati Vidyapeeth (Deemed to be university) Institute of Management and Research, New Delhi, India
  • Minakshi Sati Assistant Professor, Bharati Vidyapeeth (Deemed to be university) Institute of Management and Research, New Delhi, India

Keywords:

Artificial intelligence, pre and post analysis, CAMELS, HDFC bank, financial performance, AI applications

Abstract

Now a day, banks are focusing on more investments towards emerging technologies like artificial intelligence as customer loyalty and delight through digital transformation has become their main aim. This study is focused on examining the impact of AI techniques through CAMELS approach to crisscross the financial performance of the bank. HDFC bank is selected as sample for analysis being largest private sector bank and one of the leaders in adopting AI technology for enhancing customer experience. Authors have considered 4 pre-AI adoption years (FY2012-2016), 4 post-AI adoption years (FY2018-2021) and 2017 is considered as technology implementation cooling period. Further the study attempts to assess the HDFC performance in terms of financial parameters pre and post adoption of Artificial Intelligence applications in banking by comparing their mean values. SPSS and Microsoft Excel are used to test paired sample t on the secondary data collected and findings shows that there is a improvement in almost all the CAMELS ratios and significant improvement is observed in seven parameters namely Tier 1 Capital Ratio, BPE (Business per employee), PPE (Profit per employee), Market price (MP), Dividened per share (DPS), Cost - Income ratio, Expense to Interest Earned Ratio. Authors found that the encouraging impact of AI is being seen but significant change may take time.

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Published

24.11.2023

How to Cite

Gupta, M. ., Garg, N. ., Jain, N. ., Saini, P. ., Roy, S. ., & Sati, M. . (2023). Analysis of Financial Performance Pre and Post Use of Artificial Intelligence Applications Via CAMELS Lens: With Special Reference to HDFC Bank. International Journal of Intelligent Systems and Applications in Engineering, 12(5s), 324–337. Retrieved from https://ijisae.org/index.php/IJISAE/article/view/3894

Issue

Vol. 12 No. 5s (2024)

Section

Research Article

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