Economic prosperity has changed consumer demographics and technological factor have made consumer demand for better quality and efficient service. The service industry is becoming major contributor to the economy of many countries which were earlier dependent on the manufacturing sector. Service industry particularly the banking sector is not left behind in the competition. Banking industry has been highly commoditized. This empirical study assesses the current status of retail banking in service sector with special references to Banking Sector. The study focuses on service quality parameters and customer satisfaction. On the bases of an empirical study which was conducted in Coimbatore city, the study conclude that all the service quality parameters play a vital role in customer satisfaction.