In this paper, daily variations of satellite-derived geophysical parameters such as integrated water vapour (IWV), cloud liquid water content (CLW), sea surface temperature (SST) and sea surface wind speed (SSW) have been studied for a case of monsoon depression that formed over the Bay of Bengal during 19th-24th August 2000. For this purpose, IRS P4 MSMR satellite data have been utilized over the domain equator — 25‡N and 40‡-100‡E. An integrated approach of satellite data obtained from IRS-P4, METEOSAT-5 and INSAT was made for getting a signal for the development of monsoon depression over the Indian region. Variations in deep convective activity obtained through visible, infrared and OLR data at 06 UTC was thoroughly analyzed for the complete life cycle of monsoon depression. Geophysical parameters obtained through IRS-P4 satellite data were compared with vorticity, convergence and divergence at 850 and 200 hPa levels generated through cloud motion vectors (CMVs) and water vapour wind vectors (WVWVs) obtained from METEOSAT-5 satellite. This comparison was made for finding proper consistency of geophysical parameters with dynamical aspects of major convective activity of the depression.From the results of this study it is revealed that there was strengthening of sea surface winds to the south of low-pressure area prior to the formation of depression. This indicated the possibility of increase in cyclonic vorticity in the lower troposphere. Hence, wind field at 850 hPa with satellite input of CMVs in objective analysis of wind field using optimum interpolation (OI) scheme was computed. Maximum cyclonic vorticity field at 850 hPa was obtained in the region of depression just one day before its formation. Similarly, with the same procedure maximum anticyclonic vorticity was observed at 200 hPa with WVWVs input. Consistent convergence and divergence at 850 and 200 hPa was noticed with respect to these vorticities. In association with these developments, we could get lowest values of OLR (120 W/m2 ) associated with major convective activity that was consistent with the maximum values of integrated water vapour (6-8gm/cm2) and cloud liquid water content (50-60 mg/cm2 ) persisting particularly in the southwest sector of the monsoon depression.