SBI Chairman C S Setty on Tuesday pitched for creating an "ecosystem" where banks can offer "equity support" to startups in the country.
He said the government is also looking at a guarantee scheme where support for loans up to Rs 100 crore will be provided to the startups.
"We need to work out an ecosystem where the equity support from the banking system is also available to the startups," Setty said, speaking at the annual NTLF event organized by tech industry lobby grouping Nasscom here.
Banks are not allowed to offer equity support to startups at present, and can only offer debt support.
Setty said the country's largest lender has been active on the debt support front when it comes to startups, pointing out that it lends directly to such enterprises or through dedicated funds.
It also has seven dedicated branches across the country which offer dedicated banking support and loans to the start-up ecosystem, which is the third largest globally.
Setty said the fledgling fintechs