Performance Appraisal System is an important human resource development mechanism designed and utilized for the all-round development and growth of employees as well as organizations. Performance Appraisal System is being used to evaluate whether employees at various levels perform their assigned jobs as per the expectations of their supervisors and set standards. Different method can be used to determine and evaluate employee’s performance. These methods have its own strengths and weakness may be suitable for appraisal. The main aim of the study is to know the employees perception towards performance appraisal system and evaluation process in public sector banks. Data were collected from 110 employees. The sampling method adopted is Convenience Sampling. Statistical tool used for the research study was ANOVA. It is concluded that development of technology result in the introduction of core banking, net banking and mobile banking system by public sector banks and also find out new system of appraisal of performance of employees and motivate them to work hard and improve their performance.