July 24: Karnataka, one of India’s most vibrant SME markets, is home to more than 8.5 lakh MSMEs employing over 55 lakh people. Economic activity is increasingly extending beyond Bengaluru, with cities such as Mysuru, Mangaluru, Hubballi-Dharwad and Belagavi emerging as important economic and industrial centres. Rising investment, infrastructure development and industrial growth across the state are creating new opportunities for SMEs to expand, access new markets and participate in larger supply chains.
According to Kotak Mahindra Bank, SME customers across Karnataka are showing growing interest in business expansion and market diversification. The bank has also observed rising demand for business banking and credit solutions from SMEs in emerging business hubs across the state, reflecting increasing confidence among entrepreneurs. Kotak is, at its core, an SME-focused bank. As on June 30, 2026, the bank had an SME loan book of Rs. 1,25,826 crore, growing 20% year-on-year and accounting for 24% of the Bank’s advances mix.
“Growth ambitions are no longer confined to Bengaluru. We are seeing entrepreneurs across Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi and other emerging centres showcasing Hausla by investing for growth and entering new markets. The growing demand for business banking and credit solutions from these cities reflects increasing confidence among SME owners. As a long-term banking partner to SMEs across India, we remain focused on supporting entrepreneurs as they scale their businesses with confidence,” said Shekhar Bhandari, Head – SME, Kotak Mahindra Bank.
Karnataka’s growing technology, manufacturing and GCC ecosystem is creating new opportunities for SMEs to participate in larger value chains. As businesses scale, entrepreneurs are increasingly seeking banking partners that can support both their business and personal financial needs.
“Entrepreneurs today want more than a lender. They want a banking partner who understands their business and supports them through different stages of growth. Our House-Bank approach is built around this belief. We work closely with SME owners to support their business, personal banking, transaction banking and growth needs through a single relationship, helping them seize opportunities and grow with confidence,” Bhandari added.
Kotak Mahindra Bank continues to strengthen its footprint across Karnataka, with operations across key markets including Bengaluru, Mysuru, Mangaluru, Hubballi-Dharwad and Belagavi. Through its relationship-led approach, sector expertise and digital capabilities, Kotak remains committed to helping Karnataka’s entrepreneurs seize new opportunities and grow with confidence.