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Banks use machines that separate coins by size and weight. Depending on the country, they can be purely mechanical, electronic, or more likely a combination of the two methods.
If each denomination is a different size, the coins may be put through a mechanical sorter that sends them over a series of hoppers with holes that let the smallest coins drop first, then the next-smallest, and so on. Mechanical sorters may also have magnets or electronic sensors to weed out slugs and foreign coins that match in size but not metallic properties.
If some denominations are the same diameter but made of different metals or have different thicknesses, a sorter could separate coins using weight sensors and/or electronic scanners, somewhat like the mechanisms used in vending machines.
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