The report basically deals with “Evaluation of Credit Performance of National Bank Ltd.”. The credit management policy of National Bank Limited is prepared in line with the guidelines of Bangladesh Bank in Credit Risk Management and for the guideline of the officers or executives in handling affairs relating to credit in a disciplined way. Credit department plays a very important role in bank as they evaluate the risk and take decision about giving loan to the customers. In this report I have tried to study the literatures statements about credit management and also the credit operation of National Bank Ltd. I made a comparison study between literatures statements and the actual activities of the bank.