Volume 1 - Issue 4, November - December 2025

This study examines the failure risk of HDFC Bank by applying the Springate bankruptcy prediction model as an early warning assessment tool. In the context of increasing financial complexity and regulatory scrutiny in the Indian banking sector, early detection of financial distress has become crucial for ensuring banking stability and depositor confidence. Using secondary financial data derived from audited annual reports over a multi-year period, the study computes Springate scores based on key profitability, liquidity, efficiency, and solvency ratios. The results indicate that HDFC Bank consistently maintains Springate scores above the critical cut-off value, suggesting a low probability of financial failure during the study period. Trend analysis further reveals stable financial performance and resilience against short-term shocks, reflecting strong internal controls and risk management practices. The findings validate the applicability of the Springate model as an effective early warning mechanism for bank-level failure risk assessment in emerging economies. The study contributes to the existing literature by extending the application of corporate bankruptcy prediction models to the banking sector, offering practical insights for regulators, investors, and policymakers concerned with financial stability.