This paper discusses the nature and impact of the relationship between the bank’s promotional strategies and its performance and seeks to determine the importance of promotional strategies in explaining the bank’s performance. Promotional strategies include advertising, personal selling, direct marketing, sales promotion which are very important for every banking organization for long run success. In today’s cut throat competition in banking sector promotional strategies play vital role to attract potential customers. Promotional strategies become more crucial when they are executed to design, distribute and promote banking services. The present study is descriptive in nature and takes out significant differences in the promotional strategies adopted by private and public sector banks in India. This paper explains various promotional strategies which are necessary for a banking sector organization for effective performance in today’s competition.

KEYWORDS: Promotional Strategies, USP, Promotional Strategies.