This research project work concerns itself with the prudential guidelines and the effect on the profitability of Deposit Money Bank. The major objective is to examine the effect of prudential guideline on the profitability of Deposit Money Bank. The researcher reviewed literature adequately and accordingly. The Analysis of Variance (ANOVA) was used to analyze the primary data collected. It was found that prudential guideline has been of benefit to Bank in the area of reducing non-performing loans increased customer satisfaction and management effectiveness. It was therefore concluded that prudential guidelines has impacted significantly on the profitability of Banks in Nigeria. The researcher recommended that Deposit Money Banks need to minimize their operation cost through control of expenses to achieve increased profitability.
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