New Delhi, Sept 30 (KNN)  Federal Bank, one of the leading private sector banks in the country has set up a fund worth Rs 25 crore to provide long term loans for small businesses, particularly those with innovative ideas, showing potential for growth, according to a Business Standard report.

The fund which will be used solely for investment in start-ups that have the capacity to bring about socio-economic change will initially be used for projects in Gujarat and Kerala, it said.
 
Sectors that will be supported through this venture are digital financial services, biotechnology, high tech farming, health care, logistics, e-commerce, etc.
 
According to the media report, the bank hopes that the move will lead to job creation and support economic development.  In addition it can contribute to skill development.
 
Earlier this year, the bank had tied up with Startup Village, a technology business incubator in Kochi and MobME wireless a Kerala-based mobile and Internet Company.  (KNN Bureau)