data shows that private sector banks In India Their share in loans sanctioned to small businesses in India more than tripled in FY 2012. Public sector banks increased their stake to 73% in FY2011. When competition for credit increased in FY12, the number of public sector banks lending to smaller sectors fell to 19.1%.

Share of private sector banks in loans sanctioned to small and medium enterprises (MSME) Sector 69.8% in FY22 on a year-on-year basis.

Many private sector banks began to cut their exposure to small businesses when the pandemic broke out, but with government guarantees coming in and tensions lower than expected, they rapidly increased their market share in FY22.

During the pandemic, the government extended credit to small firms by guaranteeing new risks through Emergency Credit Line Guarantee Scheme (ECLGS).

Large corporates, which have historically been primary consumers of bank credit, were deprived of debt repayments and moratoriums on lending in the post-pandemic period.

according to CRIF High Mark Report, the total active credit to MSME industry stood at 137.4 lakh accounts as on March 2022, a growth of 7 per cent over March last year and 43 per cent growth over March 2020.

In FY22, the top five districts of Mumbai, Mumbai suburban, ChennaiKolkata and Bangalore accounted for 56% of the total origination value.