Customer Satisfaction has become an imponant aspect of measuring performance. particularly for the banking and finance industry. As most banks and finance organizations offer Similar products and services. Improving customer satisfaction and loyalty is the most important factor in maintaining as well as increasing market share for these organizations. Customer satisfaction is a grossly neglected area for performance measurement in almost all Least Developed Countries (LDCs) and Bangladesh is no exception. Like most LDCs. Bangladesh is also com:ng under pressure from the IMF. World Bank. ADB. etc. to reform its inefficient financial sector. Anecdotal evidence suggests that state·owned commercial banks (SCBs) have losl their market share and are near to closure because of their poor service quality as perceived by their customers. In contrast private and foreign commercial bankS working ;n the same social-economic and cultural settings are growing rapidly with higher profits and market share. The purpose of the paper is :0 identify the factors that affect and explain CUS10mer satisfaction in Bangladesh 's stateowned commercial banks (SCBs). This study has focused on how customer satisfaction indicators can influence the policy measures in shaping and reforming the stare-owned banks which are reeling from poor quality service and managemenr. and corruption. Yet these banks srill coorrol the finance market through 3383 branches (50% of total branches in the finance sector). Our analysis of the questionnaire sUNey accompanying this study explains the critical factors for customer satisfaction in SCB management. namely responsiveness. physical comfon and assurance. These need to be built on if customer salisfactiOfl is to be treated as a strategic van'able and improved. The findings of the study are expected to guide state-owned commercial banks as well as privare. foreign and Islamic banks in Bangladesh to improve their levels of customer satisfaction.