New Delhi, Dec. 25 -- Private banks continue to dominate enterprise lending to small businesses in India, closely followed by public sector banks (PSBs), though the latter have seen a decline in their market share over the past two years, according to a report by Small Industries Development Bank of India (SIDBI) and CRIF High Mark, India's first full-service credit information bureau.

The report noted that while private banks remain the primary lenders to enterprises, non-banking financial companies (NBFCs) are steadily gaining share, particularly among sole proprietors, where they now command over 41 per cent of the lending share.

In the study, "small business" is defined as enterprises with an aggregated credit exposure of not more t...