Over the last few quarters, public sector banks’ (PSBs’) share in lending to micro, small and medium enterprises (MSMEs) has reduced drastically. This has largely been due to the growing number of non-performing assets (NPAs) across PSBs, instability in the rupee’s value, and trade deficits.Â
According to a quarterly report by TransUnion Cibil and Small Industries Development Bank of India (Sidbi), the contribution of the 21 PSBs in the country stood at 50.7% at the end of June 2018, down from 55.8% a year earlier and down from 59.4% at the end of June 2016.Â
