This research study reveals that how corporate governance effect on profitability of commercial banks using empirical results drawn from balance panel data analysis including 7 commercial banks of Nepal for the fiscal year A.D. 2011/12 to 2020/21. The return on equity is selected as Bank’s performance variables for this study and it is the dependent variables. Board size, audit committee meeting, female board member and board meeting is independent corporate governance variables which affect the profitability of the bank. The data are collected from the annual reports of respective bank, financial statements of commercial banks, the websites of the individual banks, the websites of the Central Bank, and the annual report of the Nepal Rastra Bank. In addition to these, different published articles, report, books and magazines are also analyzed. Descriptive and causal comparative research designs are employed. Data analysis tools are descriptive statistics, correlation analysis and regression analysis. Random effect model and fixed effect model were taken as fitted model after the model diagnosis using Eviews-12 computer software. The result shows that there is a significant impact of corporate governance on ROA. The board meeting, female board member and total assets are significant impact on ROE but board size and audit committee meeting has insignificant effect on ROE. The result shows that there is a positive significant impact of board meeting on ROE in the financial institutions mainly Commercial Banks whereas the female board member, CAR and total assets has significant negative effect on return on equity. The study found that Weak corporate governance can lead to a serious financial crisis and affect the Country's economy as well as the company. In order to operate the banking industry and the economy as a whole effectively, corporate governance must be effective.