The present paper examines the impact of mergers and acquisitions on the financial and operating performance of banks that have been merged during post liberalization period by using a camel model. The present study is based on secondary data covering the time period from 2001-02 to 2013-2014. The findings of this paper reveal that to some extent mergers and acquisitions has been successful in Indian banking sector. Further, the Government should not promote merger between strong and distressed banks as a way to promote the interest of the depositors of distressed banks, as it will have adverse effect upon the asset quality of the stronger banks.