Abstract:
The main purpose of this research study was to explore factors which follow
Influence to determine profitability of commercial banks in Sri Lanka. During
this period of 2011 – 2015 the Sri Lankan central bank presented new rules for
amalgamation for financial institutions. In the perspective banking
amalgamation valuing particular bank is having contemporary importance in
that period. The focus of this study is mainly to get idea about determinants of
commercial bank profitability in Sri Lanka. There are several factors which
are impact to commercial bank profitability, only considered about internal
quantitative factors which are influence to commercial bank profitability. But
there are several factors which impact on commercial banks as internal and
external. To identify internal quantitative factors which are impact to
commercial bank profitability, got Return on asset (ROA) as profitability
proxies that one is dependent variable of that research and also Banks capital
and total Banks deposits. Those two considered as independent variables. To
run linear regression and other programs used secondary data of 08 listed
commercial banks and 02 semi government banks over 10 years’ quarterly
data. Outs come of this study are, according to model there is a significant and
positive relationship in between banks capital and banks total deposits with
return on assets.
