Credit risk management is an indispensable pillar of the banking sector, fundamental to ensuring financial stability and the enduring viability of banking activities. This abstract serves as a primer on credit risk management, emphasizing its pivotal role within public and private sector banks alike. A closer examination of the methods, tactics, and importance of credit risk management in these two distinct banking domains is vital for grasping their operational durability and economic repercussions. Credit risk management revolves around identifying, evaluating, and mitigating potential financial losses that may arise from borrower defaults, a concern inherent to banking. Public sector banks, often government-owned, bear the dual responsibility of fostering financial inclusion and economic growth, which significantly influences their approach to credit risk management. In contrast, private sector banks, driven by profit motives and market competition, exhibit different risk appetites and employ unique credit risk management strategies. This introductory exploration serves as a prelude to an in-depth comparative analysis of credit risk management practices in public and private sector banks. By contrasting these approaches, valuable insights into their distinct methodologies and outcomes emerge, contributing to a holistic understanding of credit risk management's multifaceted nature and its far-reaching implications in the banking sector.