The Indian banking sector strengthens its potential human resource and technology in order to cope up with the globalization and privatisation. Banking sector is more volatile in transfers of officers and managers in every 3 years which create a cultural diversity in the organistaion. The LPG paves the way for high mobility of people across the globe for employment which create workforce diversity in every organization. This is the big challenge for Human Resource Management where the employee performance is very vital. This thought gives a need for research in this field to identify the obstacles due to cultural diversity for the performance of employees in the private and public sector banks in India. The researcher take necessary steps in defining the delimiting factors which may limit the applicability of the study results. An attempt is made to identify the opinion of employees and the customers in selected private sector and public sector banks about the employee performance influencing factors related to cultural diversity which is a part of workforce diversity.