Leaders play a significant role in building high-performing teams who have high levels of job satisfaction and organizational commitment. As organizations continuously improve and evolve, the role of a leader becomes more demanding and important.Many leaders are facing greater challenges than ever before due to increased environmental complexity and the changing nature of organizations (Riaz&Haider, 2010).Effective leadership leads to competitive advantage for any kind of organization (Lado et al., 1992; Rowe, 2001; Zhu et al., 2005). Leaders are conferred the opportunity to lead, not because they are appointed by senior managers; they lead because they are perceived and accepted by followers as leaders (Boseman, 2008). In fact, a leader is responsible for not only leading but also providing followers with a sense of direction needed to accomplish organizational goals. The present study was conducted to study and compare the leadership styles of private and public sector bank managers.It attempted to compare managers’ perception about their own leadership style with the perception of subordinates regarding the managers’ style of leadership. The results showed that the managers in public sector banks adopted critical style of leadership as compared to the managers in private sector. According to the findings, in case of private bank managers there was a positive correlation between managers’ and subordinates’ perception w.r.t benevolent style and developmental of leadership. In case of public sector banks no correlation was found between managers’ and subordinates’ perception w.r.t various styles of leadership.