This article titled “A Study On Bank’s Credit Procedure And Credit Risk Assessment” is concerned with the study of the techniques and procedures followed by Punjab National Bank for determining and sanctioning the working capital limits andterm loan credits. The study is related to the review of the existing Credit Risk Model being implementedin PNB for the credit services. Various secondary data sources such as research papers, journals and online web portals have been used to arrive at benchmark data for analysis of the model. The RBI monitors the Credit Risk Models for all the banks inIndia and also provides guidelines for the bank to maintain their procedures. The study helps to understand the working of the Credit Risk Model of PNB in detail and also the various parameters it uses to rate a client/project. The model being discussed analyses the financial, operational, historical and industrial aspects of the business/project of the client. The analysis of the model is also done by comparing it with the industry benchmarks, and reviewing the compliance with the Basel-III and RBInorms. Various proposals and the general procedures followed at the bank were closely observed and the conclusions, thus, drawn upon.