Purpose of the Study: The study pertains to the knowledge, management and the creativity of the banking sector. It has been examined by the survey of primary data from the perspective of the customer’s security and confidence of relationship building with public and private institutions. Therefore, the issue has been revisited to explore the variance between the application of customer relationship management in private and public banks. Methodology: The number of the respondents, 249, including the depositors and borrowers, has been taken from the total universe of the population of selected list of the public and private banks branches of Hyderabad with a 95% reasonable level of confidence. To examine the data, a simple Independent T-Test was applied to find the variance between the variables. Findings: The empirical result p=<0.05 indicates there is a variance between the carry out customer relationship management in the public and private banks. Private banks are more aggressively practicing their ideas in comparison to local banks. Applications of this Study: The study will be useful for the students of commerce and business studies to understand the concept and evaluate practices of CRM in the service sector and for the management and staff related to the service sector for business development and career development. Novelty and originality of the work: The study will contribute more in the dynamic expansion in the business activities, particularly in the service sector of Pakistan, to operate, maintain and startup a profitable business for a longer period which is mutually beneficial for management, staff and customers. While the service sector in Pakistan facing the issues in business decision making with respect to CRM practices such as to retain current and future profitable client providing quality services