The financial sector plays vital role in any economy by transferring funds from surplus to deficit area by giving credit. In today’s changing financial landscape-environment of intense competitive pressure, volatile economic conditions, rising bankruptcies, and increasing levels of consumer and commercial debt; an organization’s ability to effectively monitor and manage risk associated to credit become critical. Therefore, managing its credit risk, using the credit risk management tools, can make the difference between success and failure. Hence it is essential to overview of the credit risk management practice of the banks and identifies the gap to take proactive measures and to protect the banks from any damage. Therefore the research to identify the gap on credit risk management practices of private banks case study in one of the private banks, Bank of Co-Operative was conducted. Qualitative research method was used and data has been collected from primary and secondary sources. In obtaining information from the primary data, a survey questionnaire was developed, pre-tested and used for collecting data. Simple random sampling technique was used to select respondents of the Bank and the data were collected from credit professionals. The study found that lack of information system that support the risk management process , absence of risk identification focused tools on customers’ business and the associated environment , unsound lending practices associated to credit processing and appraisal activities and lack of accountability, lack of measures associated to non performing loans, high concentration of loan on sector ,product ,geography and also on by large borrowers as a key drawbacks on credit risk management practices of the Bank.. Thus, it is suggested that Bank should build well organized management information system, should put in- place a system capable of assessing, monitoring and controlling risk exposures in more scientific manner, should give a key concern to minimize concentration risk and should develop code of conduct to proactively monitoring ethical standards, and prudent application of policies.

This study is about assessing Credit risk management of Nib international Bank S.C to achieve the intended objective of the study, Descriptive research was employed. Purposive sampling techniques were used to focus on limited number of informants who have deep insight about the issue. Accordingly, the size of the sample ware 143 which include all city Branch Managers and loan officers, credit analysts, Follow-up officer Customer Relationship Manager and Controllers of the bank. Questionnaires and interview were used as a primary data gathering instrument while annual reports and information from book of account were used as an instrument to gather secondary data relevant for the study. Descriptive statistics was used to analyze the data. Accordingly, the research found out that, credit risk policy and strategy of the bank is not renewed timely, the bank has no procedure to detect borrows associated with crime, internal risk rating system is not utilized to total portfolio and value and existence of collateral is not checked periodically Based on the findings the research suggest that, the bank should review its credit risk management strategy and policy periodically, develop policy enable to identify borrowers associated with crime and adjust its Management Information system in a manner it provide adequate information for decision makers.