Abstract: The study proposes to examine and estimate the Value Added Intellectual Coefficient (VAICTM), to measure the impact of intellectual capital on the Indian banking sector. The impact of Human Capital (HC) and physical Capital (CA) of the Indian banking sector, on the bank’s value-based performance (Bank’s financial performance and its market value) was tested. The study confirms that there was progress in the overall performance of sample banks over the study period. This study reflects the biased growth of a few sections in the Indian banking segment. The study attempts to understand the implications of the business performance of the Indian banking sector from an intellectual resource perspective.