The purpose of this study is to assess Practices and Challenges of Logistics Management in Hibret Bank S.C. The study focused and discovered the current logistics management activities that have an impact on overall logistics activities of the company, which categorized in six dimensions of LM practice namely (Inventory Management, Supply Management, Warehouse Management, Transportation Management, Customer Response and Information Flow Management). To address this study descriptive analysis method was employed and also quantitative and qualitative approaches were use. To gather data for the study questionnaire and interview for selected people have been used. Where the questionnaires were administered to all 67 staff working under facilities and procurement department respondents by using a system of drop and pick later technique. A purposive sampling was used for an interview; these are the managers or supervisors working in those two departments. Data obtained through questionnaire has been analyzed by using descriptive statics: mean and standard deviation were supported by SPSS 20.0 software version. It will be useful in the area of service industry particularly in banking as well it can be used as a base for future study. It found that logistics management practices are either moderately effective or effective. In conclusion of 59 respondents, there are 4 activities that are managed moderately effective, these are warehouse management, Transport management, Customer response, Information flow, and the two activities that are managed effective are Inventory management and Supply management. The study recommends that high degree of collaboration between various departments of the bank and deployment of logistics infrastructure and technology as an enabler. Also, it recommends that HB should be encouraged to adopt excellent human resource management