Amit Kumar Singh

Profit is a measure of success of business and the means of its survival and growth. Profitability is the ability of a business to earn profit for its owners. The objective of this study was overall profitability analysis of different private sector banks in India based on the performance of profitability ratio like interest spread, net profit margin, return on long term funds, return on net worth, return on assets & adjusted cash margin. Profitability is a measure of efficiency and control it indicates the efficiency or effectiveness with which the operations of the business are carried on. Profitability ratios provide different useful insights into the financial health and performance of a company. A business that is not profitable cannot survive. Conversely, a business that is highly profitable has the ability to reward its owners with a large return on their investment. Increasing profitability is one of the most important tasks of the business managers. Managers constantly look for ways to change the business to improve profitability. These potential changes can be analyzed with a support of income statement and balance sheet