Mihir Dash, Allianvce University, Bangalore, India

This study uses the 8-score model to analyze the financial soundness of the Indian banking system. The study considered a sample of twenty-three public sector and sixteen private sector banks in India in the period 2003-12. The study compared the financial health of the public sector and private sector banks and pre- and post-crisis trends using multi-factor panel regression analysis.

The results of the study show that the financial soundness of private sector banks was significantly better than that of public sector banks, especially in the post-crisis period; however, the overall firwncial soundness of the banking sector has significantly improved in the post-crisis period.

This study contributes to the literature by comparing financial soundness of public sector and private sector banks in India, as well as by examining trends and consistency in the financial soundness of Indi.an banks, and by comparing pre- and post-crisis financial soundness of Indian banks.

Keywords: bankruptcy prediction, z-score model, S-score model, financial soundness

Suggested citation: Dash, M. (2016), Comparison of the financial soundness of public and private sector banks in India using the S-score model. Skyline Business Journal, Volume 12, No 1, pp 64-72.

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Dash, M. (2016), Comparison of the financial soundness of public and private sector banks in India using the S-score model. Skyline Business Journal, Volume 12, No 1, pp 64-72.