IBA, banks discuss ways to boost startup funding

New Delhi, Mar 29 (KNN) The Indian Banks Association (IBA) along with banks is planning to increase funding of startups following the Silicon Valley Bank (SVB) crisis.

In its first meeting on Tuesday, the association discussed ways to expand the banking industry’s outreach programme for startups, said a top executive, reported Mint.

This follows finance minister Nirmala Sitharaman’s meet with public sector banks for reviewing their performance on various financial parameters amid global uncertainties.

She also asked public sector banks to be alert of global developments and take measures to protect themselves against any financial shocks.

“Banks are setting up branches for startups. The finance minister has asked IBA to work on how to create products and services for startups. We will offer a blended product for equity and debt. One way is that banks will invest in venture capital funds,” said chief executive of IBA, Sunil Mehta.

To assist startups affected by the Silicon Valley Bank crisis, Axis Bank, Kotak Mahindra Bank and ICICI Bank, along with the Indian unit of HSBC, had built crack teams for them and open new dollar accounts in the Gift City in Gandhinagar in Gujarat.  (KNN Bureau)