Role of Public Sector Bank Financing in Enhancing Growth Performance of MSMEs in the Vidarbha Region

Abstract

Among the most important issues in the regional economical growth, job creation, and industrial diversification, MSMEs will be crucial. This paper will discuss how Public Sector Bank (PSB) financing will improve the growth performance of the MSMEs in the Vidarbha region. In the form of quantitative and analytical research system, primary data was obtained on the basis of a structured questionnaire based on the stratified random sampling method and 200 MSME units financed by the Public Sector Banks. The performance grew with the help of the indicators of growth in performance in terms of sales growth, employment expansion, and asset creation. Correlation and regression statistical analysis showed that there is a significant positive correlation between the loan amount, suitability of tenure, utilization of digital banking and the enterprise growth product. The results suggest that PSB financing plays a significant role with regard to the growth of MSMEs although its success depends on sector. The research highlights the need to properly structure credit, engage in digital banking and supportive financial service mechanisms to enhance the sustainability of MSMEs and economic growth in the region of Vidarbha.