Due tofierce competition in todays business environment, many companies are required to build long- term profitable relationship with customers and to achieve better market share. Therefore, CRM has become more and more important since the last decade of 20th century, especially in the service industry. As a result, this study is aimed to empirically investigate the influence of CRM (key customer focus, customer knowledge management, CRM organization and technology based CRM) on market share in banking sector the case of selected commercial banks in Bahir Dar city. This study adopts cross sectional design, Deductive approach and a quantitative method as the research methodology. Accordingly, a questionnaire was distributed to 154 employees of which 143 were collected with a response rate of 93%. Correlation analysis assessed the relationship between CRM and market share. Multiple Linear Regression Model was designed to analyze the relationship between different factors of CRM and market share. Multiple Linear Regression Model were conducted using SPSS version 20 and hypothesis were tested. Thefindings confirm that CRM organization and technology based CRM have positive and significant effect with market share where as key customer focus and customer knowledge management doesn't have positive and significant effect on market share. As a result the hypothesis developed for both key customer focus and customer knowledge management have significant positive effect on market share is rejected. The rejected hypothesis is out of the status quo. Therefore the study was limited to this result.