Algorithmic Assessment of Financial Performance Among S&P BSE Private Banks in India with PROMETHEE

Purpose—The victorious growth of the economy is predicated on the reliable and efficient operation of the banks. Due to the global financial crisis, numerous banking systems around the world have failed. In order to maintain long-term profitability and prevent excessive risk, bank performance evaluation has become increasingly important in recent years. The current study's goal is to incorporate “PROMETHEE II” into the performance evaluation of banks. Design/Methodology/Approach—The study uses five important financial ratios to assess the institutions’ performance. The sampled ratios are categorized as Capital Adequacy, Earning and Profitability, Management Soundness, Asset Quality, and Liquidity, which are used to evaluate the performance of S&P BSE Private Banks Index from the year 2019–23. Findings—Our empirical findings on the performance evaluation of private banks conclude that the PROMETHEE approach and its comprehensive reports can be used by fiscal professionals as assisting tools for daily performance review of banks. Findings state that top first rank was assigned to Bandhan Bank with highest net flow (0.3134), Kotak Mahindra Bank fetching the second rank with the net flow value (0.2017), and HDFC with the third highest net flow value (0.1604). Originality—The most thorough review of the literature in this area to date is predicted to be this study. This research clarified the significance of banks’ performance evaluations while also outlining some potential research areas and avenues.