India’s 116-year-old bank SVC has been forced to issue an official clarification on the status of its business after confused customers confused it with the recently closed US SVB – Silicon Valley Bank. The similarity in the acronyms of their names may have led to confusion. To reassure its users, the SVC bank declared that it was “completely unrelated” to the defunct SVB. The California-based SVB largely catered to IT companies located in the Silicon Valley tech hub, including crypto companies.
Founded in 1906, SVC Co-operative Bank was previously known as Shamrao Vithal Co-operative Bank. In the financial year 2021-22, the Mumbai-headquartered bank said its total business stood at a net worth of Rs. 31,500 crore, having beaten more than Rs. 146 crore in profit.
The bank has warned people against spreading rumors suggesting its business is in any way related to the collapse of Silicon Valley Bank.
“SVC Bank has no connection with Silicon Valley Bank (SVB) which was based in California. We ask our members, customers and other stakeholders to disregard baseless rumors and misdeeds by unscrupulous elements insinuating similarities in brand names. SVC Bank reserves the right to take legal action against rumor mongers for tarnishing its brand image,” the bank said in a prepared statement.
Oops. I missed it. SVC Coop Bank says it has nothing to do with SVB – the Silicon Valley bank. Of course, you have a completely independent SVC. Banking is such a tricky business! pic.twitter.com/lu2W8JLTKn
— Tamal Bandyopadhyay (@TamalBandyo) March 12, 2023
In one week, the United States has seen three major crypto banks collapse under market pressure. Regulators who approved the closure of these banks said their unstable business status could have posed a serious threat to the US economy.
The consecutive falls of these crypto-friendly banks in the United States, however, managed to capture the world’s attention, sounding an alarm bell around the risks of the volatile nature of crypto.
On March 14, India’s Minister of State for Technology — Rajeev Chandrasekhar — interacted with a group of start-ups to assess the impact of the collapse of Silicon Valley Bank on them.
To mitigate the financially damaging aftereffects on the market, US authorities were quick to announce that all custodians linked to failed banks will have access to their funds.
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