A study on financial performance of merged indian commercial banks: A camel approach

This paper examines the impact of mergers on financial performance of selected commercial banks in India by using CAMEL model. CAMEL model is basically a ratio based model for evaluating the performance of banks. Total 16 ratios were used for evaluating financial performance of merged banks. For this purpose 4 Indian commercial banks merged during the period 2004 to 2008 were selected and data have been collected from CMIE data base at IIM, Bangalore. Statistical tool like, Mean, Standard deviation and T-Test have been used for analyzing the performance and testing the hypotheses. Finally, the study concludes that, the overall financial performance of the banks improves after the merger. So it could be recommended as useful financial strategy in order to improve financial performance of banks by achieving economies of scale, competitiveness, increased efficiency and market share.