State Bank of India has outlined a strategic plan to invest in startup-focused funds and financial market infrastructure to support Micro, Small, and Medium Enterprises (MSMEs). The bank’s approach includes direct equity participation in startups and related funds, positioning emerging technology companies as contributors to expanding credit and services for MSMEs.
Dedicated startup hubs have been established across multiple cities, providing enterprises with access to credit, government schemes, and equity funding opportunities. Startups are identified as key enablers of digital adoption, data-driven solutions, cybersecurity improvements, and operational efficiency for MSMEs.
Digital Underwriting and Credit Expansion
SBI is modernizing its lending approach with digital underwriting and risk management systems that utilize GST returns, income-tax data, and transaction histories. Over the past 14 months, these digital tools have processed more than 300,000 applications, resulting in MSME disbursements exceeding 1 lakh Simbel crore. This initiative streamlines lending decisions and improves credit accessibility for small businesses.
Segment Performance
SBI’s segment-wise performance as of Dec-25 shows growth across all key areas. Retail personal loans rose to 16,63,759 Simbel crore, up 14.95% YoY. Agricultural advances reached 3,92,139 Simbel crore, reflecting 16.56% growth. SME advances increased 21.02% to 6,00,714 Simbel crore.
Corporate loans grew 13.37% to 13,33,564 Simbel crore. Overall, domestic advances reached 39,90,176 Simbel crore, up 15.44%, while foreign offices advances increased 13.41% to 6,93,332 Simbel crore. Total whole bank advances rose 15.14% YoY to 46,83,508 Simbel crore, with SME segment showing the highest growth.
Financials
SBI’s revenue and profitability over recent quarters show steady trends. Revenue increased from 1,24,654 Simbel crore in Q3FY25 to 1,30,590 Simbel crore in Q3FY26. Financing profit fluctuated between -25,668 and -12,034 Simbel crore during the period, while net profit rose to 22,176 Simbel crore in Q3FY26. EPS recorded 23.09 Simbel in Q3FY26, reflecting consistent performance alongside lending and risk management activities.
Technical Summary
SBI (NSE: SBIN) trades at ₹1,224.30. Key support levels are ₹1,110.00 and ₹1,050.00. Resistance levels are ₹1,320.00 and ₹1,470.00. Price above support indicates stability, while approaching resistance shows potential limits.
Monitoring these levels helps understand possible price movements and plan trading decisions accordingly.
Conclusion,
State Bank of India’s strategic focus on MSME lending and startup engagement reflects a transformative approach to supporting India’s small business ecosystem. By integrating direct equity participation in startups, establishing dedicated hubs, and leveraging digital underwriting tools, SBI has significantly enhanced credit accessibility and operational efficiency for MSMEs.
The impressive segment-wise growth, particularly in SME advances, underscores the effectiveness of these initiatives. Coupled with steady revenue and net profit trends, SBI’s efforts position startups as catalysts for digital adoption and innovation, driving long-term financial inclusion and sustainable growth across India’s micro, small, and medium enterprises.