The State Bank of India (SBI), India’s biggest public sector bank, will set up a specialized unit to handle project financing in emerging sectors like artificial intelligence (AI), e-commerce and fintech. This initiative is a part of SBI’s larger strategy to diversify its projects finance operations beyond conventional infrastructure sectors. This project will take one year to complete and the bank will hire specialized professionals and appoint an external consultant for it.
Key Highlights
Objective
- SBI is setting up a new unit for project financing solutions for ‘new-age industries’ such as artificial intelligence, e-commerce, and fintech.
Implementation Timeline
- Within a year, the bank intends to finalize the creation of this unit.
Recruitment & Expertise
- SBI will bring in specialist professionals to run the unit and is currently in the process of appointing an external consultant.
Expansion of Project Finance Scope
- The initiative aims to diversify SBI’s project finance and structuring unit, which has traditionally focused on infrastructure projects.
Growing Focus on New-Age Industries
- SBI is increasing its lending to sectors like AI, fintech, and renewable energy as part of its evolving financing strategy.
Government Spending Boost
- The initiative aligns with increased government spending on infrastructure under Prime Minister Narendra Modi’s vision.
Past Project Financing Success
- In FY 2024, SBI funded 48 large-scale projects through its project finance and structuring unit.
Center of Excellence
- The unit will be named the “Center of Excellence for Project Financing” and will also share insights with other financial institutions.
