Govt Asks SBI, Indian Bank and Other PSBs to Launch Common Startup Hub Portal for Lending

The government has directed public sector banks to develop a common startup hub portal to make it easier for India’s 1.85 lakh recognised startups to access funding, as per news reports. The portal will allow startups to apply for loans through a single platform that enables all PSBs to process applications, share data and speed up sanctions.

Lending Push and Incubation Tie-ups

As per the news reports, SBI is leading at ₹1,626 crore. Indian Bank followed with ₹226 crore, Bank of Maharashtra with ₹120 crore, Indian Overseas Bank at ₹49 crore and Union Bank of India with ₹33 crore. 

To strengthen support, PSBs have been asked to collaborate with educational institutions and incubation centres to identify and track early-stage ventures. Punjab National Bank CEO Ashok Chandra stated to ET that, “We have created startup hubs in 7 centres across the country and are going to have a memorandum of understanding with the many incubation centres at IIT Mumbai, Kanpur, Chennai and Delhi.”

Policy Momentum to Support Innovation 

As per the report, Finance Minister Nirmala Sitharaman, in a review with PSBs in June, advised banks to proactively explore emerging growth sectors for the next decade, while focusing on sound underwriting and risk frameworks. 

The government has been encouraging internal PSB collaboration and the creation of shared digital utilities to scale up performance and competitiveness, of which the common startup hub portal is a major step.

Also Read: SEBI Proposes Major Reforms to Related Party Rules to Ease Compliance for Large Corporates!

Conclusion

With the upcoming launch of the common startup hub portal, India’s PSBs are moving towards a unified, digital-first approach to startup lending. Backed by collaboration, incubation partnerships, and transparent systems, the platform could redefine how early-stage ventures access funding nationwide.

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