New Delhi, March 19 -- Credit demand in the banking system remained steady in the March quarter, with public sector banks (PSU banks) strengthening their position in key segments such as Micro, Small and Medium Enterprises (MSME) and home loans, according to a report by Motilal Oswal Financial Services. Based on channel checks across western India, the brokerage noted that MSME credit demand stayed healthy in Q4 FY26, supported by competitive pricing, improved underwriting standards, and government-backed guarantee schemes, reported Business Standard. PSU Banks Gain Ground In MSME And Retail Lending PSU banks are gaining traction in MSME lending, aided by repo-linked pricing and schemes such as the Credit Guarantee Fund Trust for Micr...