State Bank of India (SBI) Chairman C.S. Setty has called for the development of an ecosystem that enables banks to provide equity support to startups, expanding beyond their current role of offering only debt financing.
Speaking at the Nasscom Technology and Leadership Forum (NTLF), Setty highlighted the government’s plans to introduce a guarantee scheme that would provide support for loans up to ₹100 crore for startups.
Expanding Financial Support for Startups
At present, Indian banks are restricted from offering direct equity support to startups, limiting their role to traditional debt financing. Setty emphasized the need for policy changes to facilitate equity investments, allowing startups to access more diverse funding options.
SBI has been actively lending to startups directly and through dedicated funds. The bank has also set up seven specialized branches across India, catering exclusively to the country’s growing startup ecosystem, which is the third largest globally.
Challenges in Fintech Collaboration
Setty noted that emerging fintech firms in India face operational challenges when dealing with high transaction volumes. Many fintech startups struggle to scale effectively to meet the demands of large banking platforms like SBI.
SBI has one of the largest fintech engagement portfolios in India, with 33 partnerships for its Yono app alone, underscoring its commitment to collaborating with innovative financial technology firms.
Advancing Agricultural Lending with Technology
SBI is actively enhancing its agricultural loan vertical by leveraging satellite data, structured and unstructured datasets, and crop pattern analytics. This data-driven approach aims to optimize credit decisions for farmers and improve service delivery in rural areas.
Also read: Union Budget 2025-26: Fueling India’s Startup, Tech, and Green Innovations
Industry-Wide Adoption of Resilience Operations Centers
Setty also revealed that SBI is the first lender in India to establish a Resilience Operations Center (ROC), modeled after Security Operations Centers (SOCs). The Reserve Bank of India (RBI) is now considering making ROCs a standard industry-wide practice to strengthen banking sector resilience.
With 22,700 branches and 75,000 banking franchisees, SBI is continuously expanding, opening 5-10 new branches every day, reflecting its commitment to financial inclusion and digital transformation.
