Abstract: Performance appraisal is a systematically aligned process that accesses the individual’s performance in the job responsibilities given to him .It is a holistic process which brings together many activities which in a combined way contribute to the high levels of organisational performance. It helps the organisation to make the effective and efficient utilisation of their resources towards attaining their strategic goals by providing feedback to the employees. This study is focussed on current scenario of performance appraisal system of cooperative banks and its implication to employee’s performance and organisational growth as a whole.