Financial Analysis of Private Sector Banks: Bankometer Model

Abstract

The Bankometer model has been developed by International Monetary Fund to identify financial soundness of banks. The Model helps to find the solvency scores of the banks to avoid insolvency issues and to measure the financial position by taking into account the contribution of each ratio in the model according to the IMF (2000) norms. The present study attempts to  assess top 10 Indian private sector banks (Market Capitalization) using  Bankometer model from a time period of 2018 -2022.  For all the banks solvency score (S) has been calculated  using the formula proposed by International Monetary Fund (2000) norms/ It was concluded from the study that the mean  S-score of all the  private sector banks is more than 70, which implies that  all the banks are solvent & can be termed as super sound. Among the private sector banks, Bandhan bank is the most solvent bank & ranked first whereas IDBI bank is ranked last.