Profitability is considered as one of the strong parameters to assess the financial strength and performance of a bank. The present study aims at investigation of statistically significant determinants of bank profitability. The investigation is carried out by employing Ordinary Least Square (OLS) Regression model. The empirical result shows that profit per employee, capital adequacy ratio and net interest margin ratio have significantly positive influence on bank profitability, while asset quality, size and cost of fund have negative influence. However, the influence of asset quality is resulted to be statistically significant. Having the above stated result, the present study concludes that enhancing labour productivity and improving asset quality are two the strong measures for arriving at desired level of bank profitability. 

KEYWORDS: Public Sector Banks, Profitability, Return on Assets

JEL classification: G21