Access to finance is a significant obstacle for start-ups and micro-enterprises in developing economies. Although public sector banks (PSBs) in India have a mandate to encourage financial inclusion and entrepreneurship, there is a lack of regional studies assessing how effective they are in supporting new and small-scale businesses. This research investigates the contribution of PSBs in financing start-ups and micro-enterprises in Pune District, Maharashtra, a leading entrepreneurial hub. By analyzing survey data from 200 entrepreneurs alongside secondary information from official sources, the study examines credit access, engagement in support schemes, use of digital banking, and responsiveness of institutions. Findings show that loan approval is influenced by factors such as branch reach, use of digital tools, and involvement in credit-guarantee programs. Interviews and qualitative feedback highlight ongoing issues with collateral, slow processes, and gaps in information. This research adds localized insights to the field of public banking and entrepreneurial finance, and suggests policy improvements to enhance PSBs’ support for new and small businesses.