Public vs private banks: PSU banks winning the credit growth race; official reveals reason

ublic sector banks have emerged stronger and more resilient, with credit growth outperforming their private peers in the recent past, Financial Services Secretary M Nagaraju has said.

This reflects the growing robustness of the banking community, with significant improvements in due diligence, credit underwriting standards, and monitoring mechanisms for project loans, he said while inaugurating Punjab & Sind Bank's MSME Sports Cluster Branch at Football Chowk, Jalandhar.

"Today, customers are returning to public sector banks because of their renewed focus on efficiency, transparency, and trust," he pointed out.

Nagaraju also urged all banks to continue extending greater support to MSMEs and startups - the true drivers of India's economic growth.

"At the same time, we must ensure that every customer is treated with dignity and respect, and that our digital and service journeys remain seamless, resilient, and inclusive," he said.

The event also saw the launch of specialised branch initiatives, including the SheRise Branch (managed by women employees only), MSME Edge, Agri Hub Branches, and a Startup Branch at Sector 44, Gurugram, designed to provide sector-specific financial solutions and drive inclusive growth, Punjab & Sind Bank said in a statement on Tuesday.

In his address, Punjab & Sind Bank MD and CEO Swarup Kumar Saha said Jalandhar's sports industry is an inspiration for MSME-led development, innovation, and global competitiveness.

"The establishment of these specialised branches reflects our commitment to inclusive, sector-driven growth. Such initiatives will not only empower entrepreneurs but also generate employment and enhance India's manufacturing potential," he said.

He further highlighted the bank's collaborations with premier institutions, such as ISB Mohali, PAU Ludhiana, and IIM Amritsar, aimed at promoting vendor incubation, futuristic farming, and startup incubation for MSMEs and entrepreneurs.