The primary purpose of this paper is to study of customer perception towards customer relationship management practices of Indian commercial banks in Surat city. Researcher also tries to study the different factors affecting the private and public sector banks’ customers. This research study is descriptive. The study adopted a non-probability convenience sampling method followed by the stratified sampling. For private sector banks reliability, responsiveness and marketing mix elements has significant relationship with overall satisfaction, and also significant relationship between overall customer satisfaction and loyalty. For public sector banks a significant relationship found between assurance and marketing mix elements with overall customer satisfaction and between overall satisfaction and loyalty. With the study researcher tried to establish a relationship between customer satisfaction and effective management of customer relationship. It is to be suggested that the banking sector regardless of the tangible, it should improve its operations in providing customers with highly advanced and reliable services. The research study aims to make manager enable to assess CRM activities and processes in retail banks, focusing on new methods of delivering banking services and ways to managing healthy relationship with customers.