Organizational Performance is the predominant dependent variable of any firm. It allows managers and researchers to evaluate firm’s activities and also compare its results with competitors. To gain the competitive edge, business organizations have to find out different types of resources/assets, viz., tangible and intangible (Hunt & Davis, 2008). Organizations also have to manage such assets efficiently and effectively to achieve superiority in the marketplace (ibid). Presently, many firms give more empathize to their intangible assets like ‘knowledge’ (Ali & Ahmad, 2006; Lirios et al., 2018). Consequently, organisations have to recognize innovation and manage such knowledge in systematic manner (Cardinal, 2001; De Silva et al., 2018). The purpose of this research was to examine the relationship between knowledge management and innovation (Product and Process Innovation) and its impact on organizational performance and also provide an integrated model of Knowledge Management – Innovation - Organizational Performance. The research reported here was to conduct a quantitative survey to build a broader set of evidence of the use of the SECI model in Indian banking Industry and its impact on the organizational performance. Under this research, a new survey was conducted with 292 ‘Probationary Officers’ working in 90 branches of ‘Jammu & Kashmir Bank Ltd’ located in Jammu district (tested using factor analysis and Structural equation modelling) and successfully prove the connection between the knowledge management practices and performance of the bank. This paper found that innovation partially mediates knowledge management and organizational performance.