State Bank of India (SBI) announced on Tuesday the launch of its first “state-of-the-art” dedicated branch for start-ups in the country here, to facilitate and support them.
Launched by SBI chairman Dinesh Khara, the branch is located in Koramangala, which together with neighboring HSR Layout and Indiranagar are the largest start-up hubs in the city.
“…overall we are in a position to provide end-to-end services to start-ups, with that in mind this particular start-up industry is the first start-up industry we are launching, from the capital of start-ups- Bengaluru. I’m sure it will further increase the start-up potential,” said Mr. Khara.
Speaking to reporters here, he said, based on the bank’s experience here, he is keenly evaluating the opportunity that exists in other cities for such a start-up initiative.
“After Bengaluru, we will open the next branch in Gurgaon and the third one in Hyderabad – these are the three locations where there are start-up activities and we will cover them….we will do it in the next six months,” he added up.
Further stating that SBI has already funded 104 start-ups through the debt route, Mr Khara said in response to a question: “cumulatively it should add up to Rs 250 crore.”
Explaining that the bank has a number of equity allocations, both for listed and unlisted space, he said: “It’s not specific to start-ups, it’s space for both, which is by the RBI regulated standards. We already have some investment done, it is all in all around Rs 5,000 to 6,000 crore.”
According to SBI, the branch would act as a hub with various stakeholders that help provide solutions that act as spokespersons and support the hub branch to enable the start-ups to leverage end-to-end financial and advisory services. .
It will take advantage of the bank’s large market presence by bringing the synergy between all the entities and different departments of the State Bank group to provide these companies and start-ups with a total solution from the establishment of the entity to the IPOs and FPOs of the companies.
Noting that the branch will serve as the essential “go-to place” to meet all business needs arising from the start-up ecosystem, officials said the branch would have specialized capital markets teams assisting in addition to banking services. at equity collection and registration facilities.
The branch will also house specialist officers for the startups’ forex, treasury solutions, asset management and credit needs, they said, adding that the bank’s subsidiaries, such as mutual funds and custodian services, would also collaborate on the initiative.
The facility would support the needs of the entire startup ecosystem. In addition to the start-ups themselves, the facility would also meet all the needs of the private equity (PE) and venture capital (VC) funds and the Alternative Investment Funds (AIFs).
The branch has also entered into MOUs with the Government of Karnataka initiatives such as Karnataka Innovation and Technology Society (KITS) and Karnataka Digital Economy Mission (KDEM) to support the entire startup ecosystem in Karnataka state.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)