The banking sector in Indian economy has become an integral part of global economy. Total quality management, cost consciousness, sophisticated equipment, high skill, latest technology, most up-do-date know how, production with less cost and customer’s satisfaction have become the hallmark. In such a fiercely competitive environment, with the liberalization and globalization of the economy, the management of banking and other financial organizations will have to initiate radical changes within the banking organization to enable it to compete effectively in a dynamic market.  The performance is the key area which determines the growth of any organization therefore attempt has been made to identify the significance of the recruitment policies and subsequently the performance of employees.

The management of banking organization has to continually enhance its efficiency and effectiveness for its survival and growth.  The human resources management is quite essential for any growth oriented and dynamic organization which wants to succeed in a fast changing and competitive environment.  It is the route by which banking/financial organization can come to term with the new situation.  Good human resource management practices will ensure that the employees should know their goals for the organization and accordingly perform to the levels needed and beyond for success in today’s competitive world. 

The study envisaged to propel the recruitment and selection policies having nexuses with performance echelon of the identified Banks in public sector viz. State Bank of India (SBI), Punjab National Bank (PNB) and Union Bank of India. Similarly, the identified private sector banks are ICICI, HDFC and Axis Bank (previously UTI Bank). The research article is an attempt to explore and identify the correlation between performance level among the employees of Public and Private Sector Banks vis-à-vis Recruitment and Selection procedures.

KEYWORDS: Performance echelon, competitive environment, motivation, recruitment and selection, HRM techniques, Human Resource Management, proactive, asset.