SBI invests in startup-focused funds to boost India's MSME ecosystem: MD

State Bank of India Invests in Startup-Focused Funds and Financial Market Infrastructure

As part of its MSME strategy, State Bank of India (SBI) is actively investing in startup-focused funds and financial market infrastructure through direct equity participation.

According to SBI managing director Ravi Ranjan, the bank has been investing in startup-focused funds and financial market infrastructure through direct equity participation and schemes like Startup India.

Role of Startups in Indian Economy

Highlighting the role of startups, Ravi Ranjan said, "As a code for the entrepreneurial spirit sweeping the new India, the startups are pivotal in accelerating MSME credit by driving innovation, fostering internet adoption, and creating basic employment and population scale with unicorns boosting technology governance, facilitating economic expansion for MSMEs."

Startup Hub and Support

The bank has started a startup hub in different cities, which has helped bring startups from getting funded through debt, equity, and government services.

• Hub and spoke model for assisting peripheral areas through dedicated verticals
• Tie-ups with startups and fintech enterprises remain a priority area for SBI
• Ensuring compliance of prudential standards guidelines across governance and regulatory parameters

Importance of Compliance

Ranjan emphasized that "compliance of prudential standards guidelines across governance and regulatory parameters remains a zero compromise in India."

He added that the bank consciously lives up to the promise of priority sector lending guidelines linking startups under the habit of partnership.

Ensuring tie-ups with startups and fintech enterprises remains a priority area for SBI as these three implements are agility and resilience while helping to tap supply levels effectively, Ranjan said.