This empirical study proposes to evaluate and estimate the Modified Value Added Intellectual Coefficient (MVAIC), in order to measure the financial performance of 21 Indian private sector banks in India. Drawing data from sample banks, the performance of intellectual capital was measured by MVAIC, as a comprehensive model based on Ante Pulic’s VAIC Model. This study found that the value of MVAIC of Indian private sector banks proved its dynamic relationship with the financial performance of sample banks. Hence a need for the management of the sample banks to pay due attention to managing its Intellectual Capital (IC).