Banking is one of the service sectors where competition is stiff to attract new or retain thernexisting customers among commercial banks. Customer relationship management is one of thernstrategies whereby banks are using to be competitive in financial sector. Customer relationshiprnmanagement helps banks to retain customers as the practice of CRM pays attention to the needrnof individual customers and eventually contributes a lot to customer satisfaction and loyalty.rnThe objective of this study was to examine the effect of customer relationship management onrncustomer loyalty for the case of Dashen Bank and Commercial bank of Ethiopia. The researcherrnused the behavioral components of CRM i.e. Key customers focus, Knowledge management,rnCRM Organization and Technology based-CRM as independent variables to examine its effectrnon loyalty. The researcher was used descriptive and explanatory research design to meet thernresearch objectives. The researcher was used convenient sampling method to get representativernsample from the populations. The researcher collected data from ten branches of Dashen bankrnand CBE through structured questionnaire to assess customersâ€™ level of agreement regardingrnCRM practice in their respective banks. A total of 384 questionnaires were distributed to collectrndata and out of the total 352 questionnaires were returned. The collected data was analyzedrnusing statistical package for social science (SPSS) version 20.The descriptive statistics (mean,rnstandard deviation) and inferential statistics (correlation and regression) were used to describedrndemographic facts, to test hypothesis and to answer research questions. The statistical resultrnshowed that Customer relationship management which is represented by four behavioralrncomponents has a positive and significant influence on customer loyalty. The researcherrnsuggested that Dashen bank and CBE have to pay attention to CRM Organization dimension asrnit has highest influence on customer loyalty.