Despite a slew of measures to promote lending, public sector banks shied away from extending loans to micro, small and medium enterprises (MSME). While owners of MSME firms say getting bank finance has become much difficult the past few years, various reports also indicate that the public sector bank funding has been coming down.
For example, according to data from TransUnion Cibil, between December 2013 and December 2018, the share of public sector bank credit to MSMEs fell by 19 per cent to 39 per cent.