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In this current scenario, commercial banks face challenges greatly from that of the past. To provide quality products and services to the customers, banks compete with money market mutual funds for deposits, commercial papers and other financial service companies. Now a days, profits coupled with risks have multiplied. Banks generates their income from fee based services. Banks has to concentrate on special areas like retail banking to generate remarkable profits. Due to impact of recent trends in banking industry, none of the banking industry covering around a single structure. With a striking difference in banking around the world, banking sector has emerged. The long term success of the banking industry based on their operation in the right place at the right time with right products and services.