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Abstract
After the financial crisis and pressure of implementing Basel III norms, financial solvency and stability have become top most priority for the banking sector. In this context, measuring financial health of a bank has become an imperative need. Financial risk has always been a matter of concern not only for bankers but for all stakeholders in the business world because the risk can seriously jeopardize the affairs of the business. Therefore proper assessment of financial risk is required to smooth functioning of banks and proper implementation of Basel III regulations. In this context, it is quite contemporary to study solvency position of Indian banks. The axle of this study is to predict the financial health and risk of banking by applying Altman Z Score model in the selected Indian banks. Through this model, it is highlighted that the position of the banks, under study is sound and comparatively satisfactory. It can be concluded that the selected Indian banks which are under study falls in ‘safe Zone’ as per Z-score criteria and there is not any chance of financial distress.