This study examined the effect of Customer Relationship Management (CRM) practices on customer loyalty among current account customers of Bank of Abyssinia branches in Bahir Dar City. The study was guided by key objectives focusing on CRM practices, communication quality, complaint handling, customer trust, and their influence on customer loyalty.A mixed method research design was employed, using both quantitative and qualitative data. Primary data were collected through questionnaires distributed to customers and semi-structured interviews conducted with branch managers. The quantitative data were analyzed using statistical tools, while the qualitative data were analyzed using thematic analysis to identify key patterns and themes based on the study objectives. The findings reveal that CRM practices significantly influence customer loyalty through the provision of high-quality, personalized, and responsive customer service. Effective communication mainly through face-to-face interaction, suggestion and customer feedback mechanisms was found to enhance transparency, understanding, and trust. Complaint handling systems were also identified as important in maintaining customer satisfaction, although challenges such as budget constraints, administrative delays, and system limitations occasionally hinder timely resolution. Customer trust emerged as the most critical factor influencing loyalty, with customers showing preference for the bank due to its reliability, service consistency, and institutional reputation. In addition, the use of digital banking technologies and modern service delivery systems was found to strengthen customer convenience and retention. Overall, the study concludes that effective CRM practices play a vital role in enhancing customer loyalty. The integration of strong interpersonal service, efficient communication, reliable complaint handling, and modern banking technologies contributes significantly to customer satisfaction and long-term relationships. The findings support the view that CRM is a key strategic tool for sustaining competitiveness and customer retention in the banking sector.