Indian Bank has approved approximately ₹500 crore in loans for micro, small, and medium enterprises (MSMEs) through a targeted credit outreach programme held in New Delhi.
The initiative coincides with the lender’s 120th Foundation Day celebrations and includes the launch of a Unified MSME portal designed to simplify the borrowing process for smaller businesses.
The move underscores a broader strategic shift among Indian public sector banks to deepen their penetration in the small business lending segment.
By digitizing and unifying the application process, Indian Bank aims to reduce turnaround times and improve credit accessibility for a sector that remains critical to India’s economic growth but often faces financing gaps.
This development aligns with a wider trend of aggressive expansion in the Indian MSME lending space.
Peers are also ramping up efforts to capture market share; for instance, Axis Bank recently signaled plans to expand its small business lending book by approximately ₹10,000 crore under the government’s ECLGS 5.0 scheme.