Bank of Baroda, one of India’s leading public sector banks, has signed a memorandum of understanding (MOU) with Software Technology Parks of India (STPI) and AIC STPINEXT Initiatives to support startups across India under its Baroda Startup Banking programme.
Under this programme, 15 dedicated startup branches are operational across the major startup hubs, including Gurugram, Delhi, Noida, Bengaluru, Chennai, Mumbai, Jaipur, Ahmedabad, Pune, Hyderabad, Chandigarh, Lucknow, Kolkata, Indore, and Kochi, according to a statement.
The key offerings under Baroda Startup Banking are: dedicated and trained bank officials viz startup champs and relationship managers who will be a single touch point, bouquet of tailor-made banking products designed exclusively for startups, an array of services provided at preferential rates by marquee service providers in the field of cloud computation, co-working spaces, taxation, accounting, legal, etc.
On the MoU, Akhil Handa, Chief Digital Officer, Bank of Baroda said, “2020s is the decade of startups and as a leading financial institution, we are continuously working towards designing innovative banking products and services, which meets the unique and specialized banking requirements of startups. This has led to our partnership with STPI and STPINEXT, which have emerged as a one-of-their-kind enabler for innovative startups pan India. Through this partnership, we will together fuel the growth of startup ecosystem in India.”
Banks in India have started to build closer links with the Indian startup ecosystem through various channels. Others like the State Bank of India (SBI), Axis Bank, and HDFC Bank have created their own programmes to build relationships with these young companies.
At the same time, the banks in India are also entering into partnerships with the startups especially in the fintech segment which creates a win-win kind of environment for both entities.
The Indian startup ecosystem for the first six months of the current year has raised $10.1 billion, which already exceeds the number of $9.94 billion for the whole of 2020. This reveals the growing investor confidence in a more mature Indian startup ecosystem.
