Credit risk management in the banking sector is important not only because of the Global Financial Crisis (GFC) experienced in recent years but also due to its greater impact on bank’s financial performance, growth and survival. Credit loans is one of the key sources of income of commercial banks, therefore managing the risk related to credit greatly impacts the bank’s profitability. This study investigates the impact of credit risk management on the profitability of Nepalese commercial banks. Data from 5 commercial banks for the period 2011 to 2021 have been collected and analyzed using correlation and multiple regression analysis. In the model specification, return on asset (ROA) and Earnings per share (EPS) were used as bank profitability indicators while non-performing loan ratio (NPL), capital adequacy ratio (CAR) and credit to deposit ratio (CDR) were used as indicators of credit risk management. The study reveal that there is significant relationship between NPL and CAR with profitability of commercial banks. Similarly, there does not exist a significant relationship between CDR and profitability of commercial banks. Since it was found by combining all samples data in one that overall impact of NPLR and CAR has negative effect on ROA and EPS. So all the banks should be considered toward reducing the NPL ratio and maintaining CAR.