The purpose of the study is to investigate the profitability of microfinance banks and the performance of the group based borrower in District Pakpattan Shrif (DPS). An attempt has been made to determine all the factors that can raise income level and living standard of the poor people, along with reduction in poverty. This relationship has empirically evidenced in microfinance industry in Pakpattan. The study investigate the relationship of living standard, agriculture, livestock, new businesses, working capital, education, profitability, return on asset (ROA) return on equity, (ROE) satisfaction level with micro finance by using simple regression model and descriptive statistics.