Financial Performance of Commercial Banks in India Using the EAGLES Model

Abstract

The financial performance of commercial banks is closely associated with the stability of the financial system and the efficiency of economic resource allocation. Although CAMEL and CAMELS remain widely used for assessing banking soundness, their emphasis on regulatory and financial dimensions provides limited scope for simultaneously examining earnings, asset quality, growth, liquidity, equity and strategic response. The EAGLES model addresses this limitation through a broader multidimensional framework. This paper develops the problem statement and literature foundation for evaluating the financial performance of commercial banks in India using the EAGLES model. The review covers empirical and conceptual studies published primarily during 2019–2025, with selected earlier studies included to establish the evolution of banking-performance models. The literature indicates that EAGLES is useful for comparative assessment of banks across ownership groups and national banking systems. However, Indian evidence remains fragmented, with considerable concentration on selected banks, short study periods and descriptive or ranking-based techniques. The strategic component of EAGLES also remains less developed than its financial dimensions. The paper identifies these limitations and establishes the need for a comprehensive and longitudinal assessment of Indian commercial banks using EAGLES. The proposed study is expected to strengthen the evidence base for bank managers, investors, regulators and researchers.