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Big Boost for Entrepreneurs: SBI Expands Support for Startups and MSMEs with Direct Equity Push

SBI

Vikram Singh

February 22, 2026 at 10:38 AM IST · 3 min read

SBI Startup and MSME Funding Strategy: The State Bank of India (SBI) has made a major impact on the startup ecosystem and the world of micro, small, and medium enterprises (MSMEs) with its new strategy. The country’s largest public lender will no longer be limited to lending, but will also invest through direct equity in startup-focused funds and financial market infrastructure.

At UGRO Capital’s ‘India by MSME’ event in Mumbai, SBI Managing Director Ravi Ranjan clarified that the bank is fully prepared to provide strong financial support to new-age entrepreneurs through schemes like ‘Startup India’ and its dedicated startup hubs. If you are an entrepreneur or are considering starting your own startup, this new initiative by SBI can open new doors of growth for you.

Startup Hubs Launched in Various Cities

SBI RD Scheme

SBI’s Managing Director emphasized the role of startups, calling them a symbol of the entrepreneurial spirit of ‘New India’. He stated that startups are not only driving innovation but also playing a vital role in the economic expansion of MSMEs by accelerating internet adoption and creating employment.

The bank has established dedicated “Startup Hubs” and business centers in various cities to understand the needs of startups. These hubs will not only help startups access debt loans but also serve as a bridge to equity funding and government services. By leveraging the bank’s digital expertise, even small startups will now find it easier to raise large-scale funding.

Hub and Spoke Model

SBI is implementing a “Hub and Spoke Model” to streamline its services. Under this model, dedicated verticals will provide support to entrepreneurs in local areas and neighborhoods. The bank aims to ensure that it adheres to the Reserve Bank of India’s Priority Sector Lending (PSL) guidelines.

Collaboration with Startups

sbi atm

Official clearly stated that partnering with startups and fintech companies is a priority area for SBI. This collaboration will not only bring flexibility to the bank’s operations but also help utilize the supply chain more effectively. In today’s rapidly changing market, the combination of the agility of fintech companies and the trust of a large bank like SBI will prove to be a game-changer for small businesses.

SBI has also made it clear that prudential standards and governance will not be compromised during investments and expansion. The bank will ensure that every investment and partnership is within Indian regulatory frameworks and with complete transparency.

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