The Indian banking and financial sector has a long history and 80% of banking sector in India is under the control of Govt. of India which recently introduced liberalized reforms opening floodgates to new private and foreign banks. This change created a major issue of competition effecting customer retention, employee retention and motivation. The data analysis of present study indicates that the managers in public sector organizations do not evince any ownership traits and fail to exhibit extra interest for winning the loyalty of their employees in times of global competition as against strategic approach of managing human resources by the private and foreign banks. The study is indicative of larger scope for enhancement of business by the public sector banks and they may adapt to village banking system as an innovation by using the existing employees instead of resorting to downsizing of staff through voluntary retirement schemes. There is a need for in depth study of HRM policies of State Bank of Hyderabad in view of the force field analysis, outdated disciplinary procedures and performance appraisal system.