The study aims at assessing the impact of monetary and non-monetary incentives on the performance of employees. It is an attempt to know the difference in the impact of monetary and non-monetary incentives on performance between SBI and HDFC bank employees. The data were elicited from the respondents using structured questionnaire. The Mann Whitney U test was used to test the hypotheses formulated for the study. It is found that there is significant difference in the impact of monetary and non-monetary incentives on performance between SBI and HDFC bank employees. The findings of the study state that impact of monetary and non-monetary incentives on performance of HDFC bank employees are higher than SBI bank employees.