This is a rating system of RBI for banks recommended by Padmanabhan Committee in May 2006. As per the recommendations, the banks should be rated on a five point scale of A to E widely on the lines of international CAMELS rating model. The committee has suggested that supervision of banks should focus on defined parameters of soundness, financial, managerial and operational efficiency.
C- Capital Adequacy
A-Assets Quality or Level of NPA
M- Management Effectiveness.
E- Earning or Profitability.
S- System and Controls.