Indian banking system are now more consolidated, advanced and efficient than ever, the public sector banks are performing well and become a vital part of Indian Financial System. So, this study has made an attempt to examine the financial performance and position of four public sector banks State Bank of India, Union Bank of India, Canara Bank and Punjab National Bank after their merger, with the use of CAMEL Model, invented in the year 1979. The main statistical tool used are ratios, average, rank and percentage. The study ranked the four selected public sector banks according to the capital adequacy, asset quality, management efficiency, earning quality and liquidity position and thus overall financial performance ranking.

Keywords: Indian Banking System, Public Sector Banks, CAMEL Model, Asset Quality, Management Efficiency.