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Abstract
The capital adequacy ratio (CAR) is to appraise the bank's capital. As per the necessities of the Basel Committee on banking supervision, every Indian commercial bank must maintain a desirable level of Capital Adequacy Ratio and it is stated as a percentage of a bank's risk-weighted credit exposures. It is also recognized as a capital-to-risk weighted assets ratio (CRAR), and it is used to protect the depositors and promote the stability and efficiency of financial systems. It is the ratio of a bank's capital to its risk. The ratio confirms that how much extent a bank can cover its losses in the future. The present study assesses the banking sector performance in light of the capital adequacy ratio. For the determination of an analytical study, three banks from each sector/group (i.e., public and private) are selected.