Abstract: The paper aims to analyze the impact of interest rates changes made by Central Bank (Reserve Bank of India) on the profitability of Indian commercial banks by studying the financial statements of major banks during the period 2013 to 2017. In the current situation efficiency of banking sector is considered most important for economic development & growth, monetary policy implementation and macro-economic stability. From the previous few years, interest rate spread of banking sector in India is rising. Due to deviations in the interest rate, the savings and investment are depressed and on the other hand it increases the efficiency of banks lending. In this paper interest rate is taken an independent variable and while the bank profitability is a considered as dependent variable. To examine the impact of interest rate changes on the profitability of commercial banks in India, Pearson correlation method and regression analysis are used. Hence, it has been observed that there is high degree and positive correlation between interest rate and commercial banks profitability. It means if the interest rate is increases/decreases at a given point of time, then at that time banks profitability will also increases/decreases in the proportion of correlation.