| Variables | Measurement | Expected Relation (+/−) |
| Profitability indicators (Dependent Variables) | ||
| 1) ROA | Net income to total assets |
|
| 2) ROE | Net income to shareholder’s equity |
|
| Bank specific characteristics (internals factors) | ||
| 1) Bank size | Natural logarithm of total assets | ? |
| 2) Bank ownership | Dummy variables Govt-1, others-0 | ? |
| 3) ECTA | Shareholder’s equity/total assets | ? |
| 4) Operating efficiency | Operating expenses to total assets | ? |
| 5) Credit risk | Loan loss provisions to total loans | − |
| 6) NPA ratio | NPAs to total loans | − |
| 7) Ratio of PSL | Priority sector advances to total advances | ? |
| 8) Ratio of Interest Income | Interest income to total Income | + |
| 9) Ratio of Wage to TI | Wage bills to total income | + |
| 10) Cost of funds (KF) | Interest cost to total liabilities | − |
| Banking Industry factors (external factors ) | ||
| 1) DPGDP | Banking sector deposits to GDP | + |
| 2) MCAPGDP | Market capitalization of listed Cos to GDP | + |
| Macroeconomic factors (external) | ||
| 1) Inflation | Inflation growth rate | ? |
| 2) GDP growth | Annual GDP growth rate | + |