On the eve of the 21st century, the pace of modify is immense that it is simply impossible to realize. Today’s the survival condition of the institutions is the ability to attract and retain informed customers. Customer Relationship Management is a concept for managing a company’s interactions with customers, clients and sales prospects which can accomplish financial institutions goal such as customer satisfaction. It entails using technology to organize, automate and synchronize business processes. Customer satisfaction is not adequate and the organizations such as banks oughtnot to be happy from the satisfaction of their customers. They must promise that their satisfied customers are loyal too. Obviously, for the development of e-commerce in the country and entry into global markets and membership in organizations such as WTO, the basic requirement is CRM. The serious consideration to clients entails continuity in today’s competitive markets. The organization can decrease their productive costs and increase their earnings through customers’ satisfaction. Banking sector is a customer-oriented service where the customer is the key spotlight. Research is needed in such sector to understand customers necessitate and attitude so as to build a long relationship. Generally speaking, all businesses and mostly financial institutions have been affected to some degree in what is happening in the global market place. Now, not only the organizations plan to persuade the customers but effort to do this more efficiently and effectively than their rivals in the competitive market place in order to achieve their goals. Financial institutions are setting their strategies to make convinced customer satisfaction andloyalty; therefore employees must be more customer-focused and service-oriented in order to convince their customers. CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. However, most of businesses need to know and look at the particular measures and dimensions of the CRM that have a significant impact on customer satisfaction and loyalty, which would enhance the business performance, especially with the increase in competition as well as lack of differentiation in providing a service. The main purpose of this research is to measure the effectiveness of CRM on customer satisfaction and loyalty in the banking competitive.