Profitability is an important criterion to evaluate the overall efficiency of a bank group. The present paper examines the comparative trends in profitability behavior of five major bank groups in the post liberalization and globalization era. The paper further examines the factors, which are affecting the profitability of these bank groups. The paper concludes that average profitability is the highest in case of New Private Sector Banks and in Foreign Banks. The selected factors have differently affected the profitability of these bank groups. With the help of Correlation Co-efficient Matrix and R - Square, paper examines the impact of each selected variable on the profitability of each group. The paper offers suggestions on the basis of empirical results to increase the profitability and measures should be taken to increase the level of spread and curtail the burden. On the basis results the present paper also suggests some emerging issues particularly for our Public Sector Banks. The new private sector and foreign banks have become threat for Public sector banks and at the same time they are motivation also. It is the right time that all public sector banks should adopt latest technology and compete with their counterparts.