This paper investigates efficiency of Bancassurance channel of State Bank of India, the public sector giant Indian banking sector, aiming to assess the changes in the financial performance of the bank after adopting bancassurance channels along with their banking activities. The study provides a comprehensive view of the impact of bancassurance on the financial performance of State bank of India. Capital Adequacy Ratio, Return on Asset, Level of NPA, Staff Cost, Profit Per Employee, Business Per Employee, Operating Expenses and Staff cost are the variables used for measuring the performance of bancassurance channels. The changes in these variables after initiating the bancassurance channels are also identified. The effect of bancassurance is measured by analyzing the financial performance of the bank before (1998-2002) and after (2008-2012) the commencement of bancassurance channels. The relationship between volume of cross selling percentage and performance measurement variables are also analyzed for measuring the effectiveness.