Anil Humagain anilhuma@gmail.com

This study aims to investigate the effetcts to credit risk management tools on the growth of commercial banks of Nepal. The study utilzed a descriptive research methods. The data were collected from System-X, for a period of 12 years from 2011 to 2022. The results of the study indicate that non performing loans (NPLs) have a significant negatice impact on bank performance and growth of total assets in Nepal. The average non-performin loans of the commercial bank during the study period was 1.5 percent. During this period the average total assests growth of the banking sector was 19.94 percent. Credit to Deposit ratio, Non-Performin Loan, inflatation were statistically significant to predict the growth of commercial banks. The study also revealed that credit management practices among Nepalese commercial banks are suboptimal. This study further suggests that regulatory authority should periodically review the credit risk management tools employed by banks in order to mitigate the credit risks.