Abstract: This paper scrutinizes the consequence of capital structure on execution of Pakistani banks. Sample of study include 25 banks, which are listed at (KSE) or schedule banks in (SBP) state bank of Pakistan. Multiple regression models are pragmatic to guesstimate the liaison between capital structure and banking performance. Performance is measured by Earnings Per Share (EPS), Return on Asset (ROA), Return on Equity (ROE), Total Liability to total Asset (TDTA), Total Liability to total Equity (TDTQ), Short Term Liability to Asset (SDTA), Long Term Liability to Asset (LDTA). Findings of the study authenticated a positive relationship between determinants of capital structure and performance of banking industry.