State Bank of India to establish unit for project financing in emerging industries

NEW DELHI, INDIA: The State Bank of India (SBI), the nation’s largest lender, is set to launch a dedicated unit focused on project financing solutions for “new age industries” such as artificial intelligence, e-commerce, and fintech, according to a senior executive.

Ashwini Kumar Tewari, a managing director at SBI, announced that the bank aims to complete the establishment of this unit within a year and will be hiring specializesd professionals to ensure it is well-equipped to meet the needs of these rapidly evolving sectors. Additionally, the bank is in the process of appointing an external consultant to guide the initiative, reported Bloomberg.

This strategic move is intended to diversify the operations of SBI’s existing project finance and structuring unit, which currently focuses on appraising, structuring, and funding large-scale infrastructure projects. With the increasing significance of new age industries and renewable energy sectors in SBI’s project financing portfolios, this new unit represents a forward-looking approach to capitalizing on emerging trends.

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The initiative comes in anticipation of increased spending on infrastructure, driven by Prime Minister Narendra Modi’s commitment to modernizing India’s infrastructure. In the 2024 fiscal year, SBI funded 48 large projects through its project finance and structuring unit, underscoring its role as a key player in supporting economic development.

By establishing this new unit, SBI aims to strengthen its position in the evolving financial landscape and support the growth of sectors poised for significant expansion in the coming years.