The intention of current empirical research is to explore the relationship between transformational leadership, social interaction and knowledge management among banking sector of Pakistan. The said sector is selected as population of the research. With the help of simple random sampling, different branches of public banks and private banks are selected as a sample. 270 questionnaires were circulated to top level and middle level managers. 230 questionnaires were filled by employee and used for analysis. The overall response rate was 85%. Different statistical methods i.e. Reliability analysis, Pearson’s correlation analysis and multiple regression analysis are applied on collected data. The results of Person’s correlation analysis shows that there is positive relationship between transformational leadership, social interaction, knowledge management and its dimensions i.e. knowledge sharing and knowledge application. Moreover, regression analysis’s results explains that social interaction is strong predictor of knowledge management as compare to transformational leadership. From the managerial viewpoint, the results give rational direction to banking sector of Pakistan to understand the significance of knowledge and its management as well.
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