Indian co-operative financial institution SVC clarifies that it’s a completely different entity and never associated to Silicon Valley Bank3 min read
A day after US-based Silicon Valley Bank (SVB) shut down its operation, an Indian co-operative financial institution named ‘SVC Co-operation Bank Limited’ was compelled to problem a press release following confusion on social media.
In a tweet, the financial institution stated, “SVC Bank is completely unrelated to Silicon Valley Bank (SVB) which was based in California. We request our members, customers and other stakeholders not to pay attention to baseless rumours and mischief-mongering by unscrupulous elements insinuating similarities in brand names.”
The Mumbai-based cooperative financial institution additional added, “SVC Bank reserves the right to take due legal action on rumour mongers for tarnishing its brand image.” It was established in 1906 and was previously often called ‘The Shamrao Vithal Co-operative Bank Limited.
Important announcement#HumSeHaiPossible #SVCBank #Banking #SVC #Importantannouncement pic.twitter.com/p05lHBJm9w
— SVC Bank (@SVC_Bank) March 11, 2023
The SVC co-operative financial institution has been in operation for 116 years and has posted a web revenue of ₹146 crores in Financial Year 2021-2022. It additionally knowledgeable that the financial institution has a complete enterprise of over ₹31,500 crores, 2300 workers, and is unfold throughout 11 States in India.
Earlier within the day, a Twitter consumer ‘Love Reading Books (@share_books)’ had confused the Silicon Valley Bank with SVC cooperative financial institution. “Heard rumours about bank default. Please confirm,” it requested.
The Indian cooperative financial institution responded, “You have got the Twitter handle wrong. We are SVC Bank, erstwhile Shamrao Vithal Cooperative Bank, one of the leading & strongest cooperative banks in India with a legacy of 116 years. We have no relation to Silicon Valley Bank. To know more, visit svcbank.com”
You have gotten the twitter deal with fallacious. We are SVC Bank, erstwhile Shamrao Vithal Cooperative Bank, one of many main & strongest cooperative banks in India with a legacy of 116 years. We haven’t any relation to Silicon Valley Bank. To know extra, go to https://t.co/NtHBRPdSCG
— SVC Bank (@SVC_Bank) March 11, 2023
The Collapse of Silicon Valley Bank
On Friday (March 10), the Federal Deposit Insurance Corporation (FDIC) introduced the shutdown of the US-based Silicon Valley Bank (SVB) and the seizure of its belongings.
The improvement was the results of the sudden shutdown of Silvergate Capital Corp and the unmindful fundraising of SVB, which created panic within the expertise business.
Founded in 1983, Silicon Valley Bank operated out of Santa Clara in California, and offered numerous companies equivalent to on-line banking, treasury administration, and overseas trade commerce.
Reportedly, the disaster got here to gentle on March 8 this yr after SVB Financial Group (dad or mum organisation of Silicon Valley Bank) introduced a sale of $21 billion of its securities.
FDIC: “Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.” pic.twitter.com/trqGu83CUB
— Steve Lookner (@lookner) March 10, 2023
This was additional worsened by the sale of firm shares value $2.25 billion to shore up its funds, prompted by excessive deposit outflows on the financial institution, attributable to a downturn within the startup business. As a consequence, the Silicon Valley Bank shares fell 60%, resulting in a whopping loss of $80 billion.
To salvage the enterprise, SVB CEO Greg Becker held a convention name with shoppers and enterprise capital buyers, requesting them to “stay calm” to keep away from additional withdrawals.
However, it was to no avail. Many enterprise capitalists as a substitute instructed portfolio corporations to minimise their publicity to Silicon Valley Bank, withdraw their money, and search for different lenders (thus additional exacerbating the disaster).
In February this yr, American enterprise journal Forbes positioned SVB Financial Group within the twentieth place within the listing of ‘America’s Best Banks.’