Private banks seem to be more focused on micro, small and medium enterprises (MSME) credit than before as demand for loans in this segment is picking up.
The share of private lenders in disbursements has increased in all segments, especially in the small and medium segments.
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They have doubled the average size of new disbursement, from Rs 22 million in Q4FY20 to Rs 44 million in Q4FY22 and have also reported the strongest recovery in inquiries, up 70% from the pre-pandemic level.
While all lenders saw a rise in non-performing loans after the second wave of Covid pandemic, private lenders saw the quickest recovery as compared to state-owned banks.