Ali Safari - Assistant Professor, Department of Management Faculty of Administrative Sciences and Economics University of Isfahan, Isfahan, Iran
Saeid Aghasi - Assistant Professor, Department of Management Faculty of Administrative Sciences and Economics, Islamic Azad University of Dehaghan, Isfahan, Iran
Seyed Majid Mousavi - Corresponding Author, M.A in Administrative Management, Department of Management Islamic Azad University of Dehaghan, Isfahan, Iran

This paper aims to study the relationship between the modified CAMEL methodology and profitability in Pasargad Bank. The data used for the study includes all the transactions of the bank between 2005 and 2011. The hypotheses examine the impact of the modified CAMEL factors on profitability in Pasargad Bank. The results indicate that these factors do impact profitability to various extents, however. Furthermore, with the Durbin-Watson statistic equal to 1.92 and R-squared equal to 0.94, among other statistics, we prove the adequate fit of the modified methodology.

CAMEL model, bank, profitability, capital