Financial soundness of select private sector banks in India-An application of bankometer model

Banking sector plays a vital role for the growth of the economy for years together. Due to rapid intensification in globalization and integration, technological advancement and demographic changes have created threats and opportunities for national economies. In this hasty competitive environment, banking sector has a crucial task in helping the economy and society, respond effectively to generate the liquidity, flexibility and dynamism that are required to meet the challenges and take full advantage of any opportunities. The present study analyses the financial soundness of select private sector banks in India from 2009–10 to 2013–14. The data for the study are collected from capitaline plus database and annual reports of the select private sector banks. Bankometer model has been applied to evaluate the solvency of ICICI Bank, HDFC Bank and City Union Bank over five years period.