The merger and acquisition operations has been preferred choice for banks to grow and becoming big .It got its importance in the world of partnership today due to the sever competition in the business environment. This paper is an attempt to evaluate the impact of merger on the financial performance of bank Sradar that merged with bank Audi in 2004 to formulate the Audi-Sradar banking group for private services. The evaluation is conducted by applying the most recent model for financial analysis-the CAMEL model- that measures the bank performance based on indicators such as the adequacy of capital, the quality of assets, the efficiency of management, the quality of earnings and liquidity. The study spans the period from 2000 to 2008. The study period is divided into the pre and post merger periods. The data is primarily collected from the annual reports. The results reveal that there is an improvement in the financial performance of Sradar bank in the post merger period for most of the indicators in the CAMEL model.