RELATIONSHIP BETWEEN INTEREST RATES & BANKS PROFITABLIT

Abstract

Banking and Telecom sectors from the past 5 years have shown some promising growth instead of the downturn the business as a whole but if we look at the profits of Pakistani banks none of them reported a default like the American ones, 168 Banks and financial institutions have declared defaults due to worst conditions of business, because a banks profit and operation is totally depended up on the business activity going in the country whereas on the other hand in Pakistan if we go through the performance of commercial banks we have found some attractive growth numbers, Pakistan is also affected by the financial downturn but the policies of State Banks of Pakistan are really strict in case of extending a loan. Prior to this research study I have concluded some important facts and figures related to the profitability of banks and later in this chapter I would be discussing and analyzing these factors in detail.