Employee engagement is the level of commitment and involvement an employee has towards his organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. This paper focuses on the assessment of three factors namely 'Commitment', 'Salary and benefits' and 'Job satisfaction' which ultimately decide employee engagement in public and private sector banks. 55 respondents from public sector banks and another 55 respondents from private sector banks were selected at random by adopting convenient sampling technique. The factors that grounds employee engagement is identified and they are assessed with descriptive statistics like mean and standard deviation and Pearson's product moment correlation is applied to find out their inter-relationship with each other. One way ANOVA test is also used to find out the relationship between the employee engagement factors and the demographic and other variables of the bank employees. Besides, suitable suggestions are also promulgated for better employee engagement in public and private sector banks.