The object of this study is to explore the factors impacting the profitability of MFIs (case study of south Asian countries) 45 listed banks of six countries (Pakistan, India, Nepal, Sri Lanka, Bangladesh and Afghanistan) during time periods of 2013 to 2019.The study employed ARDL model for estimation. This study uses internal and external factors to determine the relationship and impact on Profitability of MFIs. ROA is dependent variable whereas financial assets, age, Size, operating efficiency are internal factors and Gross domestic products (GDP), population and Inflation are external factors. The study has concluded that operating efficiency, age of banks, population, inflation and GDP have no significant effect of profitability. Financial asset and size (natural log of total assets) have significant effect on profitability of MFIs. As size of bank increase, they are supposed to take more possibility of increase in profitability same the case with financial assets. As recommendation, Increasing the capacity and competence of employees and management through continual trainings, experience sharing from successful MFIs, and provision of guidance and consultation are critical to making MFIs competitive and profitable. Supervisor:- Dr. Attiya Yasmin Javaid