State Bank of India (SBI) has launched a dedicated branch for startups in Bengaluru, its first in the country.

The plan is to launch more such branches in different cities to spread the startup culture in India.

Besides funding and regular banking services, the bank will offer associated services like investment banking, treasury operations, advisory and other ancillary financial services through its diverse subsidiaries.

“The initiative is just a first step in this direction, with more such branches expected to come up to lend support to startups across the country. Opening of a branch for startups demonstrates the seriousness and intent of the bank in lending all possible support to the flourishing startup ecosystem,” said SBI chairman Dinesh Khara.

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 startups to avail end-to-end financial and advisory services. 

“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 startup 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 startup ecosystem in the state. 

The recent Global Startup Ecosystem Index (GSEI) by Israel-based Startup Blink has ranked Bengaluru as the ‘strongest startup ecosystem in India’ and eighth globally. The Karnataka capital sits along with the likes of San Francisco, London, New York, Boston, Beijing, Shanghai and Tel Aviv. In this year’s GSEI rankings, among Indian cities, Bengaluru was at number 1. Globally, New Delhi ranked 13, Mumbai 17, Pune 90 and Hyderabad 97.

Karnataka boasts of a balanced ecosystem of IT & ITES, electronics, biotechnology and innovation. These sectors complement each other and the ecosystem has more than 13,000 startups and 58 incubation centres across the state.