The primary aim of this study is to examine the impact of organizational change (OC) on the psychological contract breach (PCB) of employees in Pakistan’s private banking sector. The study highlights the key role of the transformational leadership approach, particularly when a bank experiences OC and PCB. Using a cross-sectional research design and a sample of 288 private bank employees, we carry out simple linear regression and a hierarchical regression analysis. The study also investigates the mediating mechanism of PCB in relation to OC, employee turnover intention (ETI) and organizational identification (OD) and examines the moderating role of transformational leadership in the banking sector. Our findings support the study’s hypotheses. We conclude that transformational leadership plays a key role in motivating employees and channeling their energies in the direction of OC, while PCB plays a mediating role between OC and ETI and OD. Given the dearth of studies on PCB in South Asian banks, the study contributes to the literature by targeting the private banking sector in Pakistan, emphasizing employees’ reactions to OC and PCB in commercial banks.