Public sector banks (PSUs) are gaining market share in MSME and home loans in India, challenging private lenders' dominance. Factors like faster turnaround times, collateral-free options via CGTMSE, and competitive repo-linked pricing are aiding PSUs. Despite this shift, analysts suggest investors focus on major private and public banks like HDFC Bank, ICICI Bank, State Bank of India, and AU Bank as the credit cycle evolves.