This study explores the impact of loans and advances on the profitability of banks. Its aim is to analyze the relationship between the lending activities of banks and their overall financial performance. The study employs a mixed-methods approach, combining quantitative analysis of financial data with qualitative insights from interviews with bank executives. The literature review examines existing theories and empirical studies on the subject, shedding light on the potential effects of loans and advances on bank profitability. It delves into various types of loans and advances given by banks, such as commercial loans, personal loans, and overdraft facilities, considering their implications for profitability. To empirically assess the impact, the study gathers financial data from a sample of banks over a specific period. Key profitability indicators, such as Net profit, Gross profit, Operating profit ratio are analyzed to measure bank profitability.