This research focus on the significance of customer retention and satisfaction in Indian banking sector. Using different banks such as nationalized or non-nationalized along with a customer based survey and managers interviews were undertaken to support the study.The reason for choosing Indian Banks is due to the most competitive and fast growing sector in India. This sector is facing rapid changes as a result of the economic reform brought about by the Government of India a decade ago. Now days banks focuses to compete and survive in this competition which needs a good foundation of customers who are loyal to their banks. The research aims to explore different types of steps undertaken by various banks to hold their customer and grow their market share, especially during and after recession. In mature markets expansion becomes limited; in this case customer retention models can rescue the business. It is a proven fact that investment in retention is highly profitable. Higher and consistent customer retention strategy leads to higher the profitability of the firm. The recommendation and limitation provided may be valid for India only.