Finance and banking are the lifeblood of trade, commerce, and industry. Nowadays, the banking sector acts as the backbone of modern business. The development of any country mainly depends on its banking system. A bank is a financial institution that deals with deposits, advances, and other related services. The performance of the banking sector is perhaps more closely linked to the economy than that of any other sector. The growth of the Indian economy is estimated to have slowed significantly. The economic slowdown and global developments have affected the banking sector's performance in India in FY12, resulting in moderate business growth. It has forced banks to consolidate their operations, re-adjust their focus, and strive to strengthen their balance sheets. Through the CAMEL model, it is emphasised that the bank under study is solid and adequate in terms of its equity sufficiency, credit risk, managerial capacity, and solvency.

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Keywords: CAMEL, Kotak Mahindra Bank, Indian Economy, Financial Sector.