The helping hand of banks to Tamil Nadu's startup ecosystem
For many years, banks have played a crucial role in supporting the startup ecosystem. Now, they are also partnering with more incubators and educational institutions.
Indian Overseas Bank (IOB), through its startup branch, has established strong network with various stakeholders through District Industries Centre (DIC), National Credit Guarantee Trustee Company Limited (NCGTC) (for credit guarantee coverage) and State government agency.
IOB Managing Director and CEO Ajay Kumar Srivastava said: 'The networking and liaising has resulted in various inquiries coming in from all over India. In view of the same, the bank is planning to encourage main branches in startup hubs like Bengaluru, Mysuru, Gurugram and others to tap the opportunity by offering collateral free loans through coverage under CGSS (Credit Guarantee Scheme for Start Ups) or CGTMSE.'
The bank has already launched a tailor-made scheme for startups by the name 'IOB Pragati' which it plans to propagate in major centres, he said. Till date, IOB has supported 22 startups with a total funding of ₹73.84 crore. The funding is in the form of both term loan for fixed capital requirement and cash credit for working capital requirement of various firms. The sectors financed by the bank include EV manufacturing, biotech, medical equipment manufacturing, software and IT, food and beverages.
Chennai-headquartered Indian Bank is planning to expand its startup branch network beyond its existing ten locations.
Currently, the bank has 10 dedicated Startup Cells across major innovation hubs including Ahmedabad, Bengaluru, Chennai, Coimbatore, Delhi, Gurugram, Guwahati, Hyderabad, Kanpur and Mumbai. As of May 2025, Indian Bank has extended financial assistance to over 139 startups, covering diverse sectors such as healthcare, education, consumer services and eco-friendly product innovation.
Cumulatively it has disbursed over ₹340 crore under the 'Ind Spring Board' scheme, which was designed to offer tailored, collateral-light financing solutions based on the cash flow potential and business viability of the startup, not just asset backing.
Indian Bank's roadmap includes partnering with more incubators and State startup missions to deepen grassroots access besides exploration of partnerships with venture capitalists, fintechs and academic institutions to provide end-to-end support, from ideation to scale-up. The bank also has a strong network with the IIT-Madras Incubation Cell.
The collaboration with IIT-Madras Incubation Cell was formalized in 2023 under the Ind Spring Board initiative, with the aim of leveraging their deep-tech ecosystem and co-creating scalable funding solutions. Through this strategic partnership, the bank participates in demo days and pitch events hosted by IIT-M.
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