The Indian banking sector is experiencing rapid transformation driven by technological advancement, competitive pressure, and changing workforce expectations. In this evolving environment, innovative Human Resource Management (HRM) practices have become a critical determinant of organizational effectiveness and employee engagement. This conceptual study aims to examine and compare innovative HRM practices in public and private sector banks operating in Hyderabad city by analyzing existing literature, policy frameworks, and organizational contexts. The paper focuses on understanding differences and similarities in HRM philosophies, strategic orientations, and cultural influences across the two sectors. By synthesizing prior research and theoretical perspectives, the study provides insights into the effectiveness and acceptability of innovative HRM practices in banking. The findings contribute to academic discourse and offer strategic direction for improving HRM approaches and organizational performance in the Indian banking sector.