India’s public sector banks employ some 700,000 people, Most of the employees had joined the industry in the 1970s, after a group of private banks was nationalized, and many of whom are to retire in the next few years. The business has grown manifold in the past decade, but employee strength has dwindled. The attrition rate is high in PSBs and keeping in mind the large number of retirements in the coming three to four years and massive branch expansion there is a need to address this issue of attrition. The present study aimed at addressing high employee attrition in the above sector by identifying the Critical Factors which causes high attrition. The data has been collected through a structured questionnaire survey. The study identified 7 factors affecting high employee attrition in banking industry. Likert’s scale and z-test were applied to analyze the collected data. It is found that the attrition factor employee’s salary along with transfer and postings are the most critical factor affecting high attrition in the Banking sector in Delhi. Keywords: PSBs, employee attrition, autonomy, turnover.