State Bank of India (SBI), the country's largest lender, is reportedly setting up a Center of Excellence unit to manage project financing solutions for "new-age industries" such as artificial intelligence (AI), e-commerce, and fintech, Bloomberg News reported, citing a senior executive.
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New Center of Excellence
The unit, expected to be operational within a year, will be staffed by specialised professionals and guided by an external consultant, the report quoted SBI Managing Director Ashwini Kumar Tewari as saying.
According to the report, the project will help diversify the work of the bank's project finance and structuring unit, which appraises, structures and funds large projects in infrastructure. Lending to so-called new-age industries and renewable energy sectors is increasingly making up a larger portion of SBI's project financing portfolio, it added.
With India's growing focus on new-age industries and renewable energy, these sectors are becoming a larger part of SBI's lending portfolio.
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SBI’s Project Finance and Structuring Unit
SBI financed 48 major projects in FY 2024, as per its annual report. The new unit will also collaborate with other financial institutions, sharing expertise to strengthen the broader financial ecosystem.
The unit, to be called the "Center of Excellence for Project Financing," will also share insights with other financial institutions, Tewari reportedly said.
