Abstract:
The banking organizations, today, is moving towards the goal of integrated financial services
because of the strong competition and quick changes of technology. In developing countries like
Sri Lanka, banking organizations provide fund for other organisatinal developments. Financial
system of a country is broadly the mechanism in the financial market which deals with the
business or transactions in money .The financial sector in every country has become the deciding
factor of the economy. The implementation and achievement of the government policies, let it be
developing / developed depends on the financial market. There should be a steady financial policy
of the government, further more, financial stability be maintained by the state. Today banking
sector plays a significant role in the economic development of the country. The present study is
initiated an association between organizational growth and profitability of virtually all of the
Banks’ branches of Commercial bank of Ceylon Ltd in SriLanka with last 10 years accounting
period: 1997-2006.Correlation analysis shows that, Return on Average Assets (RAA), Return on
Average Share holders (RAS) are significantly associated with number of advances and number
of depositors and sales are correlated with all profitability ratios except ROE and ROI. Further
organizational growth has a greater impact on all profitability ratios.
