Vol. 7, Issue 2, Part C (2025)

MSME play an important role in economic development of the nation. Supporting the fund needs of this sector is a crucial move by any government. Government of India, worked in this direction by launching Pradhan Mantri MUDRA Yojana (PMMY) in 2015 to promote entrepreneurship and financial inclusion among micro and small enterprises. As the scheme is implemented through the existing network of banks and financial institutions, evaluating the performance of these key players become important to understand the performance of PMMY. Private and public sector banks have marked the major share in PMMY in terms of number of accounts and amount disbursements. 
By comparing key performance indicators such as number of accounts, amount disbursements, coverage of different loan categories addressing different needs and effectiveness of the risk management in the context of NPA, the study aims to assess how effectively public and private sector banks have contributed to the empowerment of micro entrepreneurs across India.
The scope of this research includes a comparative analysis of public and private sector banks over the time span of ten financial years (2015–2024). The secondary data has been sourced from the official reports of MUDRA and other government agencies. The paper highlights trends, variations, and growth patterns in loan disbursement, with particular attention to the accessibility and scale. It also evaluates challenges and opportunities faced by each type of bank in servicing the microfinance segment.
The study ultimately seeks to provide insights into how the collaborative efforts of both sectors can be optimized to further strengthen the microenterprise ecosystem, thereby supporting inclusive economic growth and sustainable development in India.