The implementation of the Insolvency and Bankruptcy Code 2016, which has been carried out in phases since August 5, 2016, was instituted with the aim of revamping the antiquated and intricate corporate insolvency regulations in India. This legislative measure was designed to tackle the pervasive issue of non-performing loans, which has had far-reaching consequences for the banking industry and the availability of credit within the broader economy. However, the unusual and surprising actions taken by the Reserve Bank of India, the central bank of India, to list delinquent borrowers and instruct banks to commence insolvency procedures against them, demonstrate a remarkable level of speed and determination. One notable illustration is the case of Essar Steel, which has encountered a default on loans amounting to around $6.9 billion and is presently undergoing a distressed sale in accordance with the Code. In light of the proactive implementation of the Code by Indian banks, as mandated by the Reserve Bank, and the commendable quality of available assets, it becomes imperative for foreign debt and equity investors to have a comprehensive understanding of the Code, along with the attendant obstacles and prospects it presents. The current investigation employed the Altman-Z score model to forecast the level of safety exhibited by banks in India with respect to potential insolvency and bankruptcy. The banks that were chosen for this study were picked based on specific criteria. The analysis conducted to assess the safety of these banks relied on information that was published in their respective Annual Reports. The research indicates that a significant proportion of Indian banks exhibit a higher level of safety in relation to insolvency and bankruptcy. The Altman-Z score analysis revealed that the performance of banks in India was strong during the first eight years of the study period. However, notable variations were observed during the latter two years of the study period. It is recommended that bank management proactively address these substantial disparities to minimise the risk of insolvency and bankruptcy.