Interesting article. We usually see new banks/financial institutions for lending to different types of businesses. We do not see similar ideas being applied to branches and that too for just new businesses.
SBI of all players, is opening a branch to cater to startups in Bangalore:
The nascent yet burgeoning start-up ecosystem has caught the attention of SBI. The country’s largest bank will soon set up a first-of-its-kind branch to cater exclusively to the growing banking needs of start-ups. The bank has zeroed in on Bengaluru, the so-called Silicon Valley of India, for setting up its dedicated branch for emerging businesses. The city is home to hundreds of start-ups, including ZopNow, Urban Ladder, Furlenco, and Instakash. It is also the headquarters of one-time start-up and now ecommerce giant Flipkart.
Currently, SBI has specialised branches for large corporates, mid-corporates, and small and medium enterprises.
SBI Chairman Arundhati Bhattacharya said the branch will be piloted in Bengaluru and the bank will subsequently scale it up to other start-up hubs. According to a Nasscom-Zinnov report, by the end of 2015, the total funding by angel/venture capital/private equity investors in India-based start-ups was estimated to be nearly $5 billion, a jump of around 125 per cent over 2014.
“The new branch will be set up to give banking and other services to start-ups. This branch will give start-ups the necessary infrastructure and facilities for meeting their banking needs,” Bhattacharya, who has been at the helm of SBI for about 26 months, told BusinessLine.
It will be interesting to visit this branch..