The foundation of any nation's economy is its banking system. With the use of monetary intermediation, it acts as a catalyst for attaining powerful economic growth. The nation's economic growth is critically impacted by the banks' financial health. One of the key factors that fund providers use to assess the success of the institutions is banking profitability. Financial performance is influenced by a number of variables. Two private sector bankshave been chosen as a sample to study the factors affecting financial performance throughout the years 2011–12 to 2021–22. Data have been obtained from the Reserve Bank of India and CMIE for the relevant years, and factor analysis has been used to determine the most important variables affecting each bank's financial performance.