Public sector banks lead in loan revival as private banks fear defaulting

State-run banks lead the way in funding the economic recovery with a surge in loans to small units and even individuals as risk-averse private sector banks tightened lending amid fears of defaults and job losses. The inherent approach of PSU banks to aid the governmental efforts while private banks' priority of enhancing shareholder wealth may have made the difference.Pace of public sector banks in loan disbursals picked up from 3 per cent in