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Purpose: Using panel data approach in Pakistani banking sector for 7 year time period from 2010 to 2016, the aim behind this study was to examine the bank specific, industry specific and macroeconomic determinants of bank profitability Research Design: Quantitative research design has been employed with OLS, random effect model and fixed effect model, moreover regression and correlation analysis has been used in this study Findings: Rise in NPLs ratio, Loan loss provision, inflation and exchange rate reduces the profitability of banks while increase in market power, bank size, capital adequacy enhance the profitability Practical Implication: The deleterious impact of different indicators on profitability of banks shows that distressed banking sector can cause hindrance in not only growth of financial sector but can also cause the poor growth of economy. Outcomes of the study emphasis on the need of clear-out of NPLs to keep financial sector sound as NPLs cause high loan loss provision which effect the capitalization of banks that ultimately effect the economic growth of financial as well as other sectors of economy. Banking supervisory agencies should pay attention towards banking monitory policies and banks macroeconomic policies Originality/value: This study examine the impact of all three types of indicator (Bank specific, industry specific and macroeconomic) on banks profitability by employing latest data from 2010 to 2016 in which major reforms were held in banking industry of Pakistan because there exist rare studies with all three types of variables with latest figures