This study examines the comparative performance of priority sector lending (PSL) between public and private banks in India. PSL is a critical aspect of banking regulation in India, aimed at ensuring equitable access to credit for sectors deemed crucial for socio-economic development. Public and private banks play distinct roles in fulfilling PSL targets, with public banks traditionally shouldering a larger share of PSL obligations. However, recent trends suggest a shifting dynamic, with private banks increasingly contributing to PSL mandates. This study analyzes the factors driving this shift, including regulatory frameworks, market competition, and strategic priorities of public and private banks. By examining the comparative dynamics of PSL between these banking sectors, this study provides valuable insights into the evolving landscape of banking regulation and its implications for inclusive growth in India. The comparison analysis also demonstrates that public banks give larger average loan amounts across sectors, whereas private banks have higher growth rates, indicating a dynamic role in meeting changing market demands.