The management board of Mumbai-based SVC Bank, which has a history of 116 years, told the press that they have no problem. The bank has requested its customers not to believe false news and rumors that there is some similarity in the brand name.
First Published Mar 13, 2023, 1:27 PM IST
The bankruptcy of California-based Silicon Valley Bank (SVB) has become a curse for a co-operative bank in Mumbai. The customers of SVB Cooperative Bank, which operates in the center of Mumbai, are also worried about the suspicion that it is related to the Silicon Valley Bank. Actually these two banks have no relation. But as the abbreviation of both the banks is SVB, it is noteworthy that the customers of SVB Co-operative Bank Mumbai are also worried. As the news spread that SVB Bank has gone bankrupt in America, hundreds of customers in Mumbai are calling various branches of the bank and inquiring. But the full name of Mumbai-based SVB Co-operative Bank is Shyam Rao Vithal Rao Bank, and the management of the bank is denying that their bank has anything to do with Silicon Valley Bank in America.
The management board of Mumbai-based SVC Bank, which has a history of 116 years, told the press that they have no problem. The bank has requested its customers not to believe false news and rumors that there is some similarity in the brand name. SVC Bank reserves the right to take legal action against those who defame our brand name,” SVC Bank clarified on social media.
Needless to say, SVC, founded in 1906 with US-based Silicon Valley Bank, was banned by California banking regulators. The collapse of SVB, which specializes in venture-capital financing, sent shock waves through global markets. About $175 billion in bank customer deposits are now under the control of the Federal Deposit Insurance Corporation, or FDIC, giving depositors only access to their insured deposits after all bank branches open Monday morning.
SVB’s problems stemmed from customer withdrawals that led to the liquidation of securities positions that fell due to Federal Reserve interest rate hikes. A quick rise in interest rates means that the securities they bought are selling for significantly less.
