Interest rate risk represents one of the key forms of financial risk faced by banks it has given rise to an extensive body of research mainly focused on the estimation of the sensitivity of banks' stock returns to changes in interest rates profitability is a major concern for the banking sector the public sector commercial banks are the backbone of Indian economy and it supports many ways many sectors like agriculture, small business, small industries, big industries, directly in providing the finance every research have its base and the outcomes are based on the type of study in the process of review of literature in books, journals, annual reports, websites of banking sector it has been observed that there are many deficiencies in the performance of the banking sector. It is expected that banks have to monitor, maintain, and manage their assets and liabilities portfolios in a systematic manner taking into account the various risks involved in these areas. Profit and loss account and balance sheet risk of a bank can have a significant influence on interest rate risk the rise and fall in the interest rate have a great impact on the profitability return on equity and return on assets. The present research work focuses on the impact of interest rate changes on the profitability of the banking industry in India the study covers 30 years and a model that was developed was regression analysis to valid the study with a minimum of 0.05 level of significance is considered very important to justice the impact of an interest rate change on the profitability of the public sector and Commercial banks.