Modern day business organizations that are operate in complex and demanding markets are often 
create stress among its employees. Some argue that a certain level of stress is vital for people to 
achieve  greater  heights.  Others  think  they  will  perform  much  efficiently  if  they  are  allowed  to 
work under minimal stress.  However, organizations are designing their job roles to get that extra 
punch from the human resources; and those who capable of handling such complexities will be 
rewarded.  As  such,  this  study  was  carried  out  in  the  Northern  region  of  Sri  Lanka,  with  the 
primary  objective  of  understanding  the  effect  of  stress  of  bank  employees  and  its  impact  over 
performance.  Secondly,  this  research  is  trying  to  identify  the  effect  of  stress  relate  to  job, 
organizational and individual factors and their relationships over performance.  
 
Above objectives are achieved with the techniques; correlations and regression. Correlations and 
coefficient  is  carried  out  to  determine  the  relationship  between  variables.  To  test  the  effect  of 
stress  over  performance,  a  regression  analysis  is  carried  out.  Further,  revealed  that  the 
relationship  between  stress  and  performance  is  negative  and  concluded  that  the  stress  is 
impacting over the performance of the employees of bank industry.