The massive changes in macroeconomic fundamentals as well as the innovation in the banking industry have rapidly increased the importance of the sector as it is currently considered one of the key pillars supporting the Indian economy. The banking and financial soundness plays a vital role in the economic development of a particular country. A strong banking sector allows the efficient management of funds and financial investments, strengthening the financial and economic system of a country (Claessens and Laeven, 2005; Ayadi et al., 2015). Furthermore, instability in the banking sector...