The present disclosure provides a method and a system for improving the state of health (SoH) of rechargeable batteries. The method comprises receiving a plurality of battery parameters during charging of a battery and estimating model parameters of the battery using a mathematical model. The method also comprises comparing the estimated model parameters of the battery and the received battery parameters to determine degradation parameters of the battery in real-time, determining new charging current profile of the battery based on the degradation parameters of the battery, and applying the determined new charging current profile to the battery for improving the SoH of the battery.