'Start-ups need to show right business behaviour to attract banks'

Overall, nearly 9,000 start-ups have banked with the HDFC till date availing facilities right from bank accounts to advisory as well as other value-added services.
Smita Bhagat, country head with Arun Mediratta, branch banking head, HDFC Bank
Smita Bhagat, country head with Arun Mediratta, branch banking head, HDFC Bank

Start-ups in India might have attracted billions of dollars of investment from funds and investors in the country and abroad, but in order to attract banks to help solve their financial constraints, they need to exhibit a genuine business behaviour, Smita Bhagat, country head, government and institutional business, e-commerce and start-ups, HDFC Bank, told this publication.

Bhagat dismissed the notion that banking norms in India are not yet start-up-friendly by saying that those companies/early-stage ventures which show genuine business exercises indulge in right kind of transactions are progressing. This is called proper banking behaviour and such companies do get banking helps in terms of ease of doing business and other facilities.

She added that HDFC Bank has worked with 200-220 in fintech, agriculture, legal, MSMEs, e-commerce and other sectors that have shown potential by helping them in mentorship, connect with the bank’s high-net-worth clients for investment purposes as well as conduct workshops for them throughout the country.

Overall, nearly 9,000 start-ups have banked with the HDFC till date availing facilities right from bank accounts to advisory as well as other value-added services.

“We have 60 dedicated bank branches for start-ups, out of which 30 such ventures are in tier 2, 3 cities. Today, I am more excited about the start-ups working from smaller areas which have shown great promise.

We are working with start-ups from remote areas of Odisha, Jamshedpur, which have great business models. Funding is not a concern there, But the management of money, scaling up, networking seems more important which is where we have come to their side,” Bhagat said.

HDFC Bank disbursed SmartUp grants cumulatively worth Rs 5 crore to start-ups working in the social sector. These grants are helping to nurture start-ups that offer unique solutions to bring about sustainable change in society and the environment. These grants have been offered under the aegis of ‘Parivartan’, the umbrella name for the bank’s social initiatives. In Bengaluru, 20 start-ups were awarded these grants. This takes the total tally to more than 60 starts-ups, which have been given this grant over the past three years.

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