This research aims at measuring the service quality in public and private banking sector in Madurai and Virudhunagar districts of Tamilnadu state and identifying its relationship to customer satisfaction and behavioral intention. The study was conducted among 802 bank customers by using revised SERVQUAL (BANQUAL) instrument with 26 items. Behavioral intention of the customers was measured by using the behavioral intention battery. The study concludes that the individual service quality dimensions have a positive impact on Overall Satisfaction and satisfaction leads to customer behavioural intention.