Indian banks are chasing the startup’s- but where’s the money?
After flourishing for years on private investments, the Indian startups ecosystem is one of which is growing fastest in the world and has finally grabed the attention of commercial banks.
So this year, both public as well as private banks have declared to provide several helping measures to startups to set up their companies even for branding and marketing.
On Jan. 14, the State Bank of India (SBI), the country’s largest lender, opened a dedicated branch in Bengaluru for startups. “We had been thinking of starting a dedicated branch for quite some time. Startups have a different kind of requirement. These are young entrepreneurs in their early 20s and 30s and many don’t even have bank accounts,” Rajni Mishra, chief general manager of SBI, Bengaluru circle, told Quartz.
“They need a lot of advice in terms of compliance, remittances, and foreign exchange, among others. So we thought we need to take them out of the normal branches,” she added.
The SBI branch, called InCube , is ready to help the startups in setting their companies including managing financial accounts for the employees and also to do the paperwork when lifting the funds from foreign investors.
In January, RBL Bank, which is a private lender situated in Kolhapur, Maharashtra, also inaugurated an initiative called India Startup Club. This feature will help the startups to get the suitable chartered accountants, proper offices, and appropriate co-working spaces. Along with it, it will also help in social media marketing, branding and customer relationship management.