International Research Journal of Commerce and Law Volume 6 Issue 12, December 2019 ISSN: 2349-705X Impact Factor: 5.486 Journal Homepage: http://ijmr.net.in, Email: irjmss@gmail.com Double-Blind Peer Reviewed Refereed Open Access International Journal 11 International Journal in Management and Social Science http://ijmr.net.in, Email: irjmss@gmail.com EMPIRICAL STUDY OF IMPACT OF BANK SPECIFIC DETERMINANT ON PROFITABILITY OF SELECTED INDIAN PUBLIC SECTOR BANKS POOJAN N. PARIKH Research Scholar, Gujarat University Ahmedabad, Gujarat Abstract: Banking sector plays an important role within the economy of the country. Healthy banking industry is that the foundation of any economy. The growth of any economy depends on the banking performance. In the finance literature performance of bank is generally measured by its profitability. Increasing the profitability of banks denotes better performance. The present study aims to examine impacts of bank specific determinant on bank’s profitability during the time period 2014-15 to 2018-19. Seven public sector banks are selected for the purpose of the study. Data has been analyzed through multiple regression model by using SPSS software. Bank’s profitability is measured by return on assets (ROA), return on equity (ROE) and net interest margin (NIM). All these profitability measures are taken as dependent variables while bank specific variables such as size, capital adequacy (CAR), liquidity (LQ), deposit ratio (DP), asset management, operating efficiency (OPEF), leverage (LEV) and number of branches are taken as independent variables. The study found out that asset management has significant impacts on ROA and ROE while OPEF and LEV have significant impact on NIM. It is recommended that bank should concentrate more on their asset quality in order to improve their profitability. Key Words: profitability, public sector banks, multiple regression etc. 1. INTRODUCTION Banking sector plays an important role within the economy of the country. Healthy banking industry is that the foundation of any economy. The expansion of any economy depends on the banking performance. Within the finance literature performance of bank is usually measured by its gain. Increasing the gain of banks denotes higher performance. The standard within the operating of finance sector actually impacts the gain of banks that as an entire impacts the economy and gross domestic product of the country. Profitability of banks is important since the soundness of an industry is closely connected to the soundness of whole economy. Indian banking system includes of scheduled and non-scheduled banks, additional divided into private sector banks, public sector banks, foreign sector banks, rural regional banks and co-operative banks.