The study focuses on the nature of the transformational leadership styles and also the relationship between transformational leadership and innovative work behaviour of branch managers of the public and private-sector banks of Kolkata. Data was collected from 120 male branch managers of Kolkata (60 from publicsector banks and 60 from private-sector banks), using the General Information Schedule, Transformational Leadership Questionnaire and Innovative Work Behaviour Scale. Responses to these tools were processed for t-test, ANOVA and correlational analysis. The results show that branch managers of the public and private-sector banks reveal uniform patterns of moderately high transformational leadership. Irrespective of the type of bank, the innovative work behaviour of the branch managers vary in terms of their levels of transformational leadership. Also, the two dimensions are positively correlated. Idea promotion, a dimension of Innovative Work Behaviour, is facilitated more by the publicsector work setting than by the private-sector setting. © Journal of the Indian Academy of Applied Psychology.