Every Organization intends to have edge over its competitors in order to sustain and gain competitive advantage. Existing research suggests that service Organizations have paid strategic attention in aligning human resources to sub-serve this cause. Organizations find it extremely difficult to recruit, motivate, develop and retain competent manpower in fiercely Competitive environment these days. This research paper reviews how competitive advantage is developed using HR practices. Based on a case study of the State Bank of India from the employees’ perspective, an attempt has been made to make generalization in this regard for emerging economy. The study uses primary data collected with the help of well structured questionnaire. Using Factor analysis, it identified five key factors as recruitment and reward system, training and skill development practices, organization climate, employee participation and empowerment; and effective communication system to determine competitive advantage in the banking industry in an emerging economy.