Banking sector plays an important role in the economic development of a country. In India, Eagles model is capable of measuring and comparing banks’ performance in a more determinate, objective and consistent manner. There is no subjectivity involved in Eagles model, and the banks are judged purely on the output ratios and ranked based on these parameters. The present study uses 10 years’ data of selected 10 public and private sector banks. The results reveal that Yes Bank is in top position in terms of Return on Assets (ROA), gross NPA, and Provision Coverage Ratio (PCR). This indicates that Yes Bank has more earning capacity as compared to the remaining selected banks. Kotak Mahindra Bank is also performing efficiently in terms of investment-to-deposit and Capital Adequacy Ratio (CAR), which indicates that private sector banks are performing well as compared to public sector banks. Among public sector banks, State Bank of India is performing efficiently in loans and deposits component. The study proves that there is a significant difference in the performance of selected public and private sector banks.

The banking sector in India is the most dominant sector of the financial system. Bank supervisory agencies are responsible for monitoring the financial conditions of commercial banks and enforcing related legislation and regulatory policy. RBI, being the apex institution, looks after the financial health and overall stability of the banking sector in India. The assessment is done by RBI based on various parameters and statistics that throw up important conclusions. These results generally set up precedents for further regulatory controls and actions for better financial environment.

RBI uses its own set of Camels ratings assessment to assure the health of banks and their financial stability. The RBI inspects banks on an annual basis. The Camels rating report is kept confidential by both—the regulator and the bank. To the extent that this information filters out into the financial markets, it appears to affect the prices of bank securities. Hence, no banks disclose the rating for publicity even if it has a good rating.

Evaluating the Financial Performance, Indian Banks, Eagles Model