MSME credit: Public sector banks

MSME Cash Credit

The share of public sector banks in lending to micro, small and medium enterprises (MSME) has been declining although overall lending to the sector has expanded rapidly.

According to the TransUnion CIBIL-SIDBI MSME Pulse quarterly report, the market share of public sector banks in MSME lending (both entities and individual segment) has reduced from 58 per cent in December 2013 to 39 per cent in December 2018.

Private banks make a mark

The data comes at a time when the government has been pushing its ambitious MUDRA scheme to boost such enterprises and create employment and private sector banks have also been getting increasingly attracted to the sector.

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