Abstract: This study attempts to investigate impact of credit risk management on bank performance by taking panel data of selected 9 commercial banks operated in Nepalese economy with 72 observations for the period 2009/10 to 2016/17. The dependent variables is return on asset which measure bank performance while the independent variables are default rate, cost per loan asset and capital adequacy ratio. For the purpose of this study, the secondary data have been used. Empirical results are based on fixed effect model and random effects model for balanced panel data. The finding suggests that default rate and cost per loan asset are the significant variables explaining the banks performance. However, Capital adequacy ratio is insignificant for the banks performance