A sample of 196 branch managers from public sector banks in India was selected to study the relationship of managerial effectiveness with motivational climate and leadership effectiveness. Self-ratings by managers and subordinates ratings of their managers' effectiveness did not differ significantly. Out of 24 characteristics of managerial effectiveness, managers gave first three ranks to: competence and responsible, good work ethics, and work quality. 'Adaptability factor' was given the 21st rank by all managers which have an important implication in terms of managerial development. Motivational climate of the organization was seen as characterized by 'extension', 'achievement' and 'expert influence.' The co relational analysis of managerial effectiveness with organizational climate dimensions suggest that branch managers are not considering themselves in the role of 'change agents' rather there is tendency to stick to rules and procedures. The findings also suggest that an effective manager is likely to be an effective leader but an effective leader may not be an effective manager. The relationship between leadership style effectiveness and managerial effectiveness needs further investigation utilizing a leadership effectiveness instrument with known psychometric qualities.