Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model

Ayisha Shaikh, Arshiya Farooqui

Abstract: This empirical study seeks to examine the financial stability of the Indian banking industry in the context of the IMF Bankometer S - score model. For the purpose of achieving the study's goals, both private and public sector banks registered on the National Stock Exchange of India Ltd. (NSE) and the Bombay Stock Exchange (BSE) were used as on 31st March 2023 and compared with a continuous data of 7 years from 2016 - 17 to 2021 - 23. The result shows that the private sector banks have shown more resilience outperforming the public sector banks in India. Almost all Indian banks struggle to maintain their cost to income ratios, with the efficiency ratio being the one ratio where they all significantly fall short. It also studies the impact of mergers of public sector banks on its Bankometer S - score and findings shows that S - score initially falls and then struggles to come back to its pre - merger level. Overall, the study concludes that the Indian banking system is extremely strong, with banks able to withstand the effects of pandemics, financial fraud and large levels of non - performing assets.

Keywords: Bankometer, S - Score, financial soundness, Banks, Mergers

How to Cite?: Ayisha Shaikh, Arshiya Farooqui, "Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model", Volume 13 Issue 7, July 2024, International Journal of Science and Research (IJSR), Pages: 937-944, https://www.ijsr.net/getabstract.php?paperid=SR24717120047, DOI: https://dx.doi.org/10.21275/SR24717120047