Indian Overseas Bank To Enter Startup Lending Space Soon

Chennai, Nov 25 (KNN) Indian Overseas Bank (IOB) has decided to enter the startup lending space, reported TOI.

To start with, the public sector bank will set up an exclusive startup branch likely in Chennai focusing on Tamil Nadu based startups before the end of March 2024.

While the public sector bank will have a startup portfolio of Rs 500 crore during the first year of operations in FY25, it will gradually extend the (startup) branches to Bengaluru, Hyderabad and Mumbai. 

IOB MD & CEO Ajay Kumar Srivastava said, products offered by the exclusive startup branch will be tailored to suit the needs of the startups. 

“The bank is entering into the startup financing space for the first time. We are devising products and services depending on their requirements,” he told TOI.

As per reports, the bank is approaching startups in multiple sectors including drones, food processing and information technology. 

It is also holding discussions with a city based premier institute of higher education, which could assist them in selecting startups that require financial assistance.

 “While funding the existing and established startups gives us comfort, the budding startups will also be supported for which we are formulating a policy,” he added.

The national investment promotion and facilitation agency Invest India states that India has emerged as the third largest ecosystem for startups globally with 1,12,718 Department for Promotion of Industry and Internal Trade recognized startups spread over the country as of October 3, 2023.

(KNN Bureau)