SBI To Establish Project Finance Unit For AI, Ecommerce, Fintech
The State Bank of India (SBI) is establishing a new department dedicated to offering project financing solutions. This unit will cater to emerging sectors and new-age industries. The initiative aims to support startups and innovative businesses that may struggle to secure traditional financing. This move aligns with SBI's ongoing efforts to evolve and adapt to the changing business landscape. The bank believes this strategic move will help foster growth and innovation in the Indian economy.
SBI Sets Up New Unit for Project Financing of New-Age Industries
The State Bank of India (SBI) is setting up a new unit to provide project financing solutions for new-age industries such as artificial intelligence (AI), ecommerce, and fintech. The public sector bank is looking to hire “specialised professionals” for the new unit, which is expected to be set up in a year, Ashwini Kumar Tewari, managing director of corporate banking and subsidiaries at SBI, told Bloomberg.
The unit, to be named the ‘Centre of Excellence for Project Financing’, will also offer insights to other financial institutions, Tewari said. The bank is also planning to appoint an external consultant for the same.
Emergence of New-Age Tech Sectors
The development comes at a time when rising internet penetration and improvement in access to smartphones over the last decade or so have spurred the growth of new-age tech sectors like ecommerce and fintech. India is currently home to over 820 Mn internet users and this number is expected to surge to 1.2 Bn by 2030.
Besides, with generative AI taking the world by the storm, the adoption of the technology is also growing exponentially in the country. As a result, a number of companies, domestic as well as global, are setting up data centres in India.
SBI's Response to Changes in the Economy
SBI’s decision to set up a new unit seems to be taken with an eye on making the most of these changes in the country’s economy by providing dedicated and swift solutions to these new-age sectors.