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The application of strategic relationship between Knowledge Management and Human Resource Strategy in Banking Industry is a key to achieve organizational competence. The main purpose of this study is to find out relationship between KM and HR Strategy for performance implication in Nepalese commercial banks. Therefore, Strategic relationship between KM and HR strategy for banking performance is found to be poor in practice. So, weak implementation hinders in achieving the desired results. Result of this study clearly exposed that Nepalese Commercial Banks need to determine different profiles of their organizational strategy based on the human resource that has the material impact on an organization. Meanwhile, it need to direct the knowledge management strategy resource which may enable Nepalese banks to achieve competitive advantage. Therefore, future efforts by both policy makers and academicians are still unknown to sharpen the theoretical framework and practical validation.

The impact of knowledge management and human resources strategies on the Nepalese banks’ efficiency