Strategic Human Resource Management Practices in Indian Nationalized and Private Banks Dr. Kunal S. Badade Research Guide and Head, Department of Commerce, Dayanand College of Commerce, Latur, India Nishikant C. Warbhuwan Research Scholar and Asst. Professor, School of Management Sciences, S.R.T.M. U. Sub centre, Latur, India. Keywords: Strategic Human Resource Management, Bank, SHRM, HRM in Indian Banking Introduction: Strategic Human Resource Management Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Strategic HRM can be regarded as a mindset underpinned by certain concepts rather than a set of techniques. Strategic HRM involves the exercise of strategic choice (which is always there) and the establishment of strategic priorities ‘Strategic HRM focuses on actions that differentiate the firm from its competitors’ (Purcell, 1999) Why Strategic Human Resource Management is Important for Banks Strategic HRM is important for banks because banking is a service industry. Management of people and management of risk are two key challenges facing banks. How you manage the people and how you manage the risks determines your success in the banking business. Efficient risk management may not be possible without efficient and skilled manpower. Banking has been and will always be a ‘People Business’. Though pricing is important, there may be other valid reasons why people select and stay with a particular bank. Banks must try to distinguish themselves by creating their own niches or images, especially in transparent situations with a high level of competitiveness. In coming times, the very survival of the banks would depend on customer satisfaction. Those who do not meet the customer expectations will find survival difficult. Banks must articulate and emphasize the core values to attract and retain certain customer segments.