In India, private sector banks have shown greater tendency than the public sector banks (PSBs) for utilizing the Emergency Credit Line Guarantee Scheme (ECLGS) and disbursing more loans to micro, small and medium-sized enterprises (MSMEs) thereby covering a larger number of beneficiaries. This has been revealed by the Reserve Bank of India (RBI) in its Financial Stability Report. While private banks had disbursed Rs 1.06 trillion of government guaranteed loans, the corresponding figure for the PSBs stood at Rs 830 billion as on November 12, 2021. Meanwhile, non-banking financial companies (NBFCs) disbursed Rs 310 billion and foreign banks Rs 50 billion.
