Across the global banking landscape, a quiet revolution is underway as financial institutions redesign their services for mid‑sized companies, a cohort whose annual revenues typically range from roughly $6 million to $60 million or Rs. 50–500 Crores in India. These firms have long existed between the well‑served worlds of small business banking and the sophisticated world of large corporate banking yet lacked a bespoke suite of financial tools keyed to their growth stage. Mid corporate groups are the answer, blending relationship management with custom credit, risk, trade and treasury solutions that help mid‑sized firms finance operations, manage risk and scale domestically and internationally.
In India, the State Bank of India’s Mid‑Corporate Group, launched in 2004, was one of the earliest dedicated efforts to serve this segment, defined by turnover of Rs. 50–500 Crores and credit facilities exceeding Rs. 10 Crores. Around the world, banks such as Axis Bank, Nedbank in South Africa and niche commercial groups in Europe and the US have developed similar practices. This trend reflects a broader shift in financial markets as traditional corporate lending slows and mid‑corporate clients become strategic engines of credit growth.
The case for mid‑corporate banking arises from this segment’s dual nature: too large for small business products yet underserved by the complex, collateral‑heavy deals typical of large corporate banking. Mid corporate groups fill this gap with relationship teams, bespoke lending products and integrated solutions that support capital expenditure, working capital management, international trade and risk hedging. Today these groups are not just a niche product line but a strategic priority for banks seeking sustainable margin improvements amid shifting capital markets and evolving borrower preferences.
A Strategic Middle Ground
Banks define the mid‑corporate segment in nuanced ways that vary by institution and region. In India, the State Bank of India’s Mid‑Corporate Group focuses on companies with annual turnovers between Rs. 50 and 500 Crores and credit facilities above Rs. 10 Crores. SBI’s model contrasts with definitions at other lenders such as IDBI Bank, which considers mid‑corporates those with revenue up to ₹750 Crore.
Across markets, mid‑corporates share common characteristics: they require more sophisticated financial products than micro and small enterprises but lack the scale for standard large corporate solutions. Their balance sheets may be robust yet opaque; their growth potential significant yet capital constrained. This “missing middle” segment can drive meaningful loan book growth but also demands nuanced credit assessment.
Mid corporate groups typically operate within banks’ wholesale or commercial banking arms. Relationship managers coordinate credit delivery, working capital finance, treasury products and international banking needs for a portfolio tailored to the specific lifecycle of mid‑sized firms. This approach stands in contrast to transactional small business lending and high‑touch large corporate coverage with its syndication desks and capital markets functions.
Services that Drive Growth
Mid corporate groups blend traditional and innovative banking services to meet clients’ evolving needs. At Axis Bank, the mid‑corporate team offers a suite of solutions from credit and treasury products to cash‑management, supply chain financing, investment banking support and regulatory advisory.
A core service is tailored credit: working capital lines that support inventory and receivables financing, term loans for capital expenditures, acquisition finance for strategic growth and structured trade facilities. Relationship managers assess not just financial data but industry dynamics and growth plans to structure terms that balance risk and opportunity.
Beyond credit, treasury and risk management tools such as foreign exchange hedging and derivatives become essential as mid‑corporates expand internationally. Cash management services, including collection and payments solutions, enhance operational efficiency, while supply‑chain finance aligns financing with broader business ecosystems.
The integration of digital platforms and automated processes also accelerates service delivery. For example, some banks incorporate real‑time payments, virtual account collections and digital credit decisioning to reduce turnaround time and improve client experience, blending technology with relationship banking.
Comparing Banking Segments
| Service Offering | Mid Corporate Group | Traditional SME Group | Large Corporate Group |
| Relationship Manager | Yes | Limited | Yes |
| Custom Credit Structuring | Yes | No | Yes (complex) |
| International Services | Optional | Rare | Core |
| Treasury Products | Yes | No | Yes |
| Digital Cash Management | Yes | Some | Extensive |
Risk and Credit Assessment
Mid corporate banking demands rigorous risk assessment calibrated for scale and volatility. Unlike small business lending where cash flow dictates risk or large corporate credit where historical access to capital markets offers signals, mid‑corporates often sit in the opaque middle. Analysts evaluate financial statements, sector cyclicality, collateral quality and management strength to assign risk ratings and pricing.
Banks increasingly leverage data analytics and sector insights to refine underwriting. Credit committees consider not only current performance but forward‑looking indicators such as order books, export exposure and macroeconomic trends. Stress testing under multiple scenarios helps to anticipate downturn exposure.
Regulators and internal risk frameworks also influence lending practices. In India, Reserve Bank of India guidelines shape capital allocation and provisioning, prompting lenders to balance loan growth with asset quality metrics. This context partly explains why many large public sector banks have recently shifted focus to mid‑corporate lending as a growth engine with manageable risk‑reward profiles.
Expert Voices
“Mid‑corporate clients increasingly require banks to be partners not just lenders. Banks that integrate advisory and digital services with credit delivery will lead this segment,” says a senior credit strategist at a multinational bank.
“In many markets the mid‑corporate segment is the growth engine of the economy yet remains underserved. Tailored financial solutions and proactive risk management unlock tremendous value,” observes a global commercial banking consultant.
“A relationship‑led model, supported by analytics and real‑time platforms, gives mid‑corporate clients access to services beyond traditional lending,” adds a technology in finance expert.
Market Trends and Growth
Recent Mid Corporate Group trends indicate that banks are boosting mid‑corporate exposure to mitigate slow demand from traditional large corporate lending. In India, SBI’s mid‑corporate loan portfolio grew by 18% and is seen as a key driver of overall credit growth. Analysts note this shift reflects broader market dynamics: large firms increasingly tap bond markets and commercial paper, while small firms depend on MSME schemes, leaving mid‑corporates as prime candidates for bank credit growth.
In other markets such as South Africa, Nedbank has launched dedicated mid corporate offerings with ESG‑aligned advisory and flexible credit solutions to unlock growth for mid‑sized firms. The global embrace of mid‑corporate banking signals recognition of the value this segment contributes to employment, innovation and cross‑border commerce.
Takeaways
- Mid corporate groups serve firms between SME and large corporate segments with tailored banking solutions.
- Definitions vary but often include revenue between Rs. 50–500 Crores, or equivalent.
- Services span custom credit, treasury, risk management and cash management solutions.
- Relationship managers are central to structuring solutions that match client growth stages.
- Risk assessment blends traditional credit analysis with forward‑looking indicators.
- Market trends show rising focus on mid corporate lending amid subdued large corporate demand.
- Digital tools and analytics increasingly enhance service delivery and credit decisioning.
Conclusion
Mid corporate banking has evolved from a niche specialization to a strategic pillar in the broader banking ecosystem. By tailoring credit, treasury and advisory services to the unique needs of mid‑sized firms, banks bridge a service gap that traditional SME and large corporate units often overlook. The Mid Corporate Group segment’s growth reflects shifts in global finance as large borrowers bypass bank credit for markets and small firms rely on government schemes, mid‑corporates emerge as profitable, relationship‑driven clients with diverse needs and significant growth potential.
This evolution challenges banks to innovate, deploy technology and refine risk frameworks so mid corporate groups can deliver both financial performance and client‑centric outcomes. In doing so they help fuel economic growth and isolate mid‑sized firms from the volatility that marks many markets. The future of corporate banking, for many institutions, will be shaped not just by size but by how deeply they understand and serve the dynamic middle of the corporate landscape.
FAQs
What is a mid corporate group in banking?
A mid corporate group is a banking division that serves mid‑sized companies with customized credit and financial services beyond basic SME products.
How do banks define mid corporate customers?
Definitions vary, but institutions often use revenue ranges (e.g., Rs. 50–500 Crores) or credit facility thresholds to classify clients.
What services do mid corporate groups offer?
Services include tailored credit, cash management, trade finance, treasury and advisory support for growth planning.
How is mid corporate different from SME?
Mid corporate clients are larger and need more complex financing and risk management than typical SME offerings provide.
Why are banks focusing more on mid‑corporate lending?
With softened demand from large corporates and competitive markets, mid‑corporate lending offers higher yields and growth opportunities.
References
- Business Standard. (2025, September 9). Slim credit demand sees large PSBs turn focus to mid‑sized corporates. https://www.business‑standard.com/industry/banking/state‑owned‑banks‑shift‑focus‑mid‑sized‑corporates‑125090901259_1.html
- Financial Express. (2025, September 3). SBI to focus on mid‑corporates. https://www.financialexpress.com/business/banking‑finance‑sbi‑to‑focus‑on‑mid‑corporates‑3965838/
- LinkedIn. (n.d.). SBI Mid‑Corporate Group (Company profile). https://in.linkedin.com/company/sbi‑mid‑corporate‑group
- Axis Bank. (n.d.). Mid Corporate – Axis Bank. https://www.axis.bank.in/corporate/mid‑corporate
- SBI. (n.d.). Public Issue Prospectus Section on Mid‑Corporate Group. https://www.sebi.gov.in/sebi_data/attachdocs/1287645474768.pdf