SBI receives $500 million loan from Korean EXIM Bank

While the wealth management service “Exclusif” is targeted at the fast-growing affluent segment in the country, “SBI InCube” -the branch for start-ups – would offer advisory services to the budding entrepreneurs under one roof, according to reports.

However, the bank would love to give them loans when they turn more mature, Bhattacharya said. “Surely, then they can become good candidates for funding”, she said. There is increased interest in this sector as several startups are using technology to disrupt the current systems of lending, borrowing, personal finance and financial inclusion in the country.

SBI InCube would advise entrepreneurs on several issues from setting up a company to taxation matters, asset and liability products, foreign exchange services, remittances and cash management.

The branch, located in downtown Seoul, is the Indian bank’s first in South Korea, though the institution set up a representative office in Seoul in 2013.

In regards to funding startups, she said, “We are custodians of public funds which we need to return”.

Future branches of InCube will come up in Pune and National Capital Region (NCR) where a lot of startup activity is also happening. “Let startups think about bringing innovation rather than worrying about these things”, said Bhattacharya Prominent names in the startup ecosystem including Sharad Sharma of iSPIRT, TV Mohandas Pai of Manipal Global Education and Infosys co-founder Nandan Nilekani have been roped in as mentors for the initiative. The bank is also planning to introduce remote expert facility, which is high-definition video interaction with the bank’s experts for customers’ various financial needs like life insurance, general insurance, demat account and securities. Exclusif customers will have access to a dedicated relationship manager to take care of all their banking and investment needs. On the external risks that India faces from an economic slowdown in China, she said the Communist country’s economy will not have a hard landing as it has sufficient forex reserves to capitalise all its banks. This includes increasing exemption limit under Section 80C, she added.