This research was conducted on performance analysis of private banks in Ethiopia, taking Awash International Bank S.C as a case study. Banking system is really a thing which makes our economy grow up. But the banking industry is not yet well developed. Therefore, the study focuses on the detail of the performance of the bank in economic endeavor and assesses the impact of those regulatory measures on the banks operation. The study was conducted by using primary and secondary sources of data. The analysis show that, AIB is performing more in economic endeavor and besides this it is facing some problems like, lack of diversification of financial instruments, lack of space for opening new branches, lack of stock exchange market, lack of determination of interest rate by market forces,etc. Based on the above problem, possible recommendations were forwarded.