India’s SVC Bank Issues A Clarification After SVB Mixup
Because the short names of the two banks, SVB and SVC Bank, are so similar, some Indians got them confused when they went to the bank in Mumbai.
Silicon Valley Bank (SVB) going out of business sent shockwaves through many businesses, including an Indian bank that had nothing to do with the California-based bank.
As soon as news came out on March 10 that SVB was going to close, panic spread around the world because investments tied to one of the biggest banks in the U.S. showed an uncertain future. But the Shamrao Vithal Co-operative Bank (SVC Bank), which has been around for 116 years and is based in Mumbai, got in the way.
Because the short names of the two banks, SVB and SVC Bank, are so similar, a few Indians made a mistake when they tried to deal with the Indian bank.
SVC Bank put out a statement separating itself from the failed U.S. bank, which is now being run by the Federal Deposit Insurance Corporation (FDIC). The sentence said:
“SVC Bank is completely unrelated to Silicon Valley Bank (SVB) that was based in California. SVC Bank reserves the right to take due legal action on rumor mongers for tarnishing its brand image.”
Also, the Indian bank told its members, customers, and other important people to ignore the rumors that it was going to close. The announcement also said how much money the bank made in the past year.
On March 13, U.S. President Joe Biden announced his plan to help SVB and Signature Bank, two traditional banks that had failed, “at no cost to taxpayers.”
Thanks to actions we've taken over the past few days to protect depositors from Silicon Valley and Signature Banks, Americans can have confidence that our system is safe.
People’s deposits will be there when they need them – at no cost to the taxpayer.
