Studies have reported that employees’ perception of service climate is decisive in the success of organizations. This study tries to examine the linkage among service climate, job involvement and service behavior of employees in the retail banking sector. Cross sectional data was collected from frontline employees in retail banks. Regression analysis is used to test the model on the links between the constructs analyzed. Service behavior of employees was found to be positively related to their perception of service climate and level of job involvement. Further analysis produced a statistically significant model explaining 40 % of employee service behavior. This study demonstrated the role of individual and organizational factors in predicting service behavior of employees. Service behavior of employee can be enhanced by improving the climate for services in the organization. The results should lead managers to consider the importance of emphasizing service climate and build a positive service climate in their organizations. The value added of this research is highlighting the salience of service climate and its links with service behavior, on the basis of employee perceptions through an empirical study.