Analyzing The Merger Impact On Financial Performance Of Canara Bank: An Approach Based On The CAMELS Framework

Abstract

India’s banking system has undergone significant changes in recent years, primarily attributed to globalization and the resultant intensification of global market competition. This article focuses on analyzing impact of the merger on Canara Bank’s financial performance. To assess operational, profitability, and financial changes between the pre-merger and post-merger periods, the CAMEL analysis technique, incorporating profitability and operational ratios, has been applied. The evaluation of each parameter of CAMEL involves the examination of five corresponding ratios. A comprehensive composite index has been developed based on these evaluations. The findings reveal favorable profitability and CAMEL performance; however, the operational performance post-merger falls short of expectations. This study aims to offer valuable insights for stakeholders such as customers, depositors, borrowers, and investors, among others.