The banking sector plays a crucial role in sustaining economic growth, ensuring financial stability, and delivering customer-centric services in an increasingly competitive environment. In the current economic context, characterized by inflationary pressures, fluctuating interest rates, rapid digital transformation, and changing consumer expectations, Customer Relationship Management (CRM) has become a strategic necessity for banks to strengthen customer satisfaction, retention, and loyalty. This research focuses on analysing and comparing the effectiveness of CRM strategies adopted by public and private sector banks in India, with a special emphasis on how these institutions are adapting to present economic challenges and evolving customer demands. The study explores the operational differences between the two sectors, where public banks traditionally emphasize trust, accessibility, and financial inclusion, while private banks concentrate on personalized services, technological innovation, and proactive customer engagement. It evaluates the role of CRM in enhancing customer experiences, improving service delivery, cross-selling financial products, resolving grievances, and nurturing long-term relationships. The research also examines the impact of factors such as the global economic slowdown, regulatory reforms, rising non-performing assets (NPAs), increasing digital banking disruptions, and intense competition from fintech companies. By employing a blend of primary and secondary data, the study seeks to assess customer perceptions, satisfaction levels, and loyalty trends in both sectors. The insights derived are expected to help identify gaps in CRM implementation, provide strategic recommendations to optimize customer engagement, and improve operational efficiency. The aim of the researchers in this research is to contribute meaningful insights that support policymakers, bank managers, and industry stakeholders in formulating effective strategies for sustainable growth, stronger customer relationships, and enhanced competitiveness within the Indian banking industry