Financial Performance Analysis Of Private Sector Banks In India: An Eagle Model Approach

Abstract

Bank nationalization was an important landmark in the history of banking in India. In order to serve the development needs of the country, Banking Industry is growing at a faster pace and thus the competition too. Banking industry is one of the crucial and important industries of Indian economy. There are many banking companies working in India. Due to passage of time there has been a constant change in the performance of banks, which leads to change in ranking and position of the banks every year. The aim of this study to evaluate financial performance of selected private sector banks of india by using EAGLE model. Private sector banks such as namely Axis Bank, DCB Bank, Federal Bank, HDFC bank, ICICI bank, RBL Bank and South Indian Bank was selected on the basis of economic influence criteria. To accomplish this aim, financial data from the chosen banks' annual reports spanning from 2013-14 to 2022-23 was extracted. Utilizing the EAGLE model, the banks were ranked, and ANOVA test was employed to assess the disparity among the financial parameters across banks. The finding of this study shows that HDFC bank, DCB bank, RBL bank & ICICI bank secured first rank whereas HDFC bank will be in terms of earning and assets, DCB bank in terms of earning and equity, RBL bank in terms of growth and liquidity and also ICICI bank in terms of liquidity parameters with outstanding performance. South Indian bank secured last position in earning, growth and liquidity parameters with below average performance. Overall HDFC bank secured first rank followed by DCB bank, RBL bank, Axis bank, ICICI bank, Federal bank and South Indian bank. The tabulated values of all the variables are less than significant value 0.05 at 95% confidence level so null hypothesis of variables of this study are rejected, that means there are statistically significant difference in all the selected samples.