State Bank of India (SBI)‘s first start-up branch in Bengaluru, launched on Tuesday, will serve as a one-stop shop for all start-ups and corporates in the state.
“It is an initiative to provide an organised ecosystem for start-ups that are willing to ride on the available opportunities. Start-ups play an important role in the Indian economy and we are happy to create enablers for them,” said Dinesh Kumar Khara, Chairman, SBI.
To avail of their services, start-ups must register with the Department of Promotion of Industry and Internal Trade (DPIIT). SBI has provided debt to 104 start-ups across the country, with a cumulative investment of Rs 250 crore in the last 18 months.
The bank said it would launch more branches in Gurugram and Hyderabad in six months. “With the growth in start-ups in the country and the support and encouragement of the Centre, similar branches are planned in more cities in the months to come,” said the chairman.
The branch would provide access to banking facilities, funding, and credit facilities. Rs 2 crore in collateral-free financial assistance will be given to start-up entrepreneurs. Additionally, it would cater to the requirements of private equity, venture capital funds, and alternate investment funds (AIFs).
SBI has signed a memorandum of understanding with the Karnataka government to undertake initiatives such as the Karnataka Innovation and Technology Society (KITS) and Karnataka Digital Economy Mission (KDEM), to support the start-up ecosystem in the state. The exclusive branch for start-ups is located in Koramangala, Bengaluru.