State Bank of India has opened a new branch in Bengaluru dedicated to startups to offer services like funding, investment banking, treasury operations, advisory and other ancillary financial services.
“Opening of a branch for startups demonstrates the seriousness and intent of the bank in lending all possible support to the flourishing start-up ecosystem,” said Dinesh Khara, chairman of SBI in a statement on August 16.
The startup branch is located in Koramangala, alongside HSR Layout and Indiranagar which are the biggest startup hubs in the city.
The bank’s subsidiaries like mutual funds and custodial services would also be partnering in the initiative.
The branch would act as a hub with various stakeholders assisting in providing solutions acting as spokes and supporting the hub branch in enabling the start-ups to avail end-to-end financial and advisory services through the branch, SBI said in the statement.
“Starting from the formation of the entity till IPOs (Initial Public Offer) and FPOs (Follow-on Public Offer) of the companies, the Branch will serve as the vital go-to place for meeting any business need emanating from the start-up ecosystem,” Khara added.
Besides the banking services, SBI is planning to house specialist officers for forex, treasury solutions, wealth management and credit needs of startups.
“The branch would also be catering to all the requirements of the private equity firms, venture capital funds and the alternate investment funds (AIFs),” the statement said.
The exclusive startup branch has also entered into a Memorandum of Understanding (MoU) with some Government of Karnataka initiatives like Karnataka Innovation and Tech Society (KITS) and Karnataka Digital Economy Mission (KDEM) to support the entire start-up ecosystem in the state of Karnataka.
SBI also said that similar branches are planned to be opened in more cities in the months to come.
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