Will help founders access loans, prevent equity dilution: SBI chairman

SBI NSE -0.19 % chairman Dinesh Khara on Tuesday said his bank is reaching out to startups through exclusive branches that will prevent founders from selling their equity to investors for want of a bank loan.

“There is no source of funds like debt for startups,” Khara, who opened SBI’s first startup branch at Koramangala in Bengaluru, told the media. He suggested that founders often sell their stake cheaply to investors after they fail to access bank loans.