This study examined the impact of the performance appraisal system (PAS) on employee performance in banks operating in South East Nigeria post the Covid-19 pandemic. The study's broad objective was to examine the impact of performance appraisal on employees' work performance in South East Nigeria. This research also looked into the important components of performance appraisal, such as setting performance criteria, communicating those goals, measuring actual performance against those standards, discussing the appraisal with employees, and providing feedback. The required data for this investigation was acquired using a closed-ended structured questionnaire. Many related studies were used to create the questionnaire, which was then modified. The following approaches were used to select the comprehensive sample from a total population of 1745 employees: The target demographic was first determined, and then the sample size was calculated using a formula. Basically, 325 questionnaires were distributed to the employees that were sampled, and 260 of them were returned, representing 80% response rate. The 260 completed surveys were then analysed with smart PLS, a programme designed specifically for Structural Equation Modeling, path analysis, and confirmatory component analysis. It is also known as causal modelling software or analysis of covariance software. Correlation analysis and descriptive statistics were used. The study's findings revealed that performance appraisal had a primarily favourable impact on employee performance in Nigeria's banking sector. There was some positive and a negative (very significant) relationship between performance appraisal and employee performance, according to the correlation study.