Abstract: Role of monetary market in financing in various part of economy is much more important than capital market. Therefore, in according to prominent role of banks in economy of the country; evaluating performance of banks is vital. Profitability has essential role in evaluating performance of banks. Effective factors of profitability can be divided into internal and external. Thus, we tried to investigate relationship between internal factors and profitability. This research was inductive and descriptive. We used coefficient regression and analysis regression in order to test hypotheses. Sample study included all of Keshavarzi branches of South Khorasan Provenience during 2009 and 2011. Based on results of the research significant and negative relationship exists between independent variable of deposits and loans and dependent variable of profitability, whereas, significant relationship exist between liquidity and credit risk management.

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