SVB Confusion Makes India’s SVC Bank to issue Clarification
The consequences of the downfall of Silicon Valley Bank (SVB) reverberated through numerous businesses, including a bank from India which did not have any ties to the banking entity located in California.
On March 10, news of SVB’s potential closure caused a worldwide stir due to the investments linked to one of America’s most significant banks being at risk. This also resulted in an inadvertent impact on Shamrao Vithal Co-operative Bank (SVC Bank), a cooperative bank based in Mumbai that has been operational for 116 years.
A few Indian citizens were confused by the similarity of the abbreviations for the two banks — SVB and SVC Bank — and voiced their concerns to the Indian bank.
SVC Bank released a statement to clear up any confusion and make it clear that they are not associated with the U.S. bank currently overseen by the Federal Deposit Insurance Corporation (FDIC). The declaration stated:
“SVC Bank is completely unrelated to Silicon Valley Bank (SVB) that was based on California. SVC Bank reserves the right to take due legal action on rumor mongers for tarnishing its brand image.”
In addition, the Indian bank warned its members, clients and investors not to pay heed to the ongoing gossip about its closure. The declaration also revealed the bank’s profitability in the preceding year.
On March 13, US President Joe Biden declared that he would be providing aid to SVB and Signature Bank, both of which have been struggling financially, without requiring any financial contribution from the taxpayer.
Biden’s Twitter supporters pointed out that “everything you do or touch costs the taxpayer!”