Due to fierce competition in todayâ€™s business environment, many companies are required tornbuild long- term profitable relationship with customers and to achieve competitivernadvantage. Therefore, CRM has become more and more important since last decade of 20thrncentury, especially in the service industry. As a result, this study is aimed to empiricallyrninvestigate the influence of CRM (key customer focus, customer knowledge management,rnCRM organization and technology based CRM) on loyalty in banking industry with referencernto Dashen Bank. A theoretical framework was used as a guideline to test the influence ofrnCRM on loyalty. A quantitative research approach was implemented. Besides, a descriptivernresearch design was used. A questionnaire derived from previous studies and relevantrnliterature is completed by 384 customers and out of this 280 are returned and used forrnstatistical analysis. Correlation analysis assessed the relationship between CRM and loyaltyrnand multiple regression analysis assessed the influence of CRM on loyalty. The findingsrnconfirm all the independent variables have a positive and significant relationship with loyaltyrnin Dashen Bank. Moreover, the study examines a positive and significant influence of CRMrnon loyalty. Besides, it is found that customer knowledge management underpinning of CRMrnhas the highest influence on loyalty in Dashen bank. Therefore, the selected banks have tornimplement CRM appropriately and continuously, as an indispensable tool for gainingrncompetitive advantage and building long â€“ lasting and profitable relationships with itsrncustomers in order to achieve customer loyalty