Nearly three quarters of the countrys financial activity is conducted by these nationalised institutions. The government owns the majority of these banks. Since merging with its five affiliate banks (as of 1st April 2017), SBI has grown to become one of the worlds top 50 banks, and it is also the biggest public sector bank in India in terms of volume. The stability of a countrys financial system is essential to its overall economic health. The collapse of multinational financial institutions has the potential to wreak havoc on economies all across the world. A recent example of this infectious impact is the collapse of the Lehman Brothers. As such, assessing the stability of domestic banks finances is of the utmost importance. Financial metrics such as the CAMEL rating, which incorporates capital adequacy ratio, profitability, and liquidity are some of the current tools that could be useful for analysing banks financial situations. When assessing the health or instability of a companys finances, the Altman Z score model is a crucial tool. Unfortunately, scholars did not delve into it much while examining the financial stability of institutions. The current research makes an effort to adapt the Altman model for use in the Indian banking sector based on this reference. The majority of Indian banks financial situations were deemed adequate by the research, with only two outliers. were both discovered to be in a precarious financial situation. But when compared to other banks in their industry, both of these ones had a sufficient capital adequacy ratio. In order to draw any firm-specific conclusions about its viability, the research recommends using a hybrid model.