Credit risk is one of the most significant risks faced by banks, arising from the failure of borrowers to meet their repayment obligations. Effective management of credit risk is essential to ensure the stability and profitability of banking institutions. This study focuses on analysing credit risk management practices in the State Bank of India (SBI). The research is based on both primary and secondary data collected through structured questionnaires and financial reports. Statistical tools such as percentage analysis, correlation, regression, and chi-square tests were used for analysis. The study identifies key factors influencing credit risk, including loan appraisal, monitoring systems, and repayment behaviour. The findings reveal that effective credit risk management practices help in reducing Non-Performing Assets (NPAs) and improving overall banking efficiency. The study concludes with suggestions to strengthen credit evaluation and monitoring systems.