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SVB mixup forces India's SVC Bank to issue a notice of clarification

source-logo  cointelegraph.com 15 March 2023 08:19, UTC

The shockwaves caused by the collapse of Silicon Valley Bank (SVB) were felt by countless businesses, including a bank from India that had no relation with the California-based banking institution.

Soon after reports of SVB’s imminent shutdown surfaced on March 10, panic spread across the globe as investments tied to one the biggest banks in the US depicted an uncertain future. However, a Mumbai-based 116-year-old cooperative bank — Shamrao Vithal Co-operative Bank (SVC Bank) — got caught in the line of fire.

The similarity in the short forms of the two banks — SVB and SVC Bank — caused a mixup among a few Indian citizens as they took up the concern with the Indian bank.

Important announcement#HumSeHaiPossible #SVCBank #Banking #SVC #Importantannouncement pic.twitter.com/p05lHBJm9w

— SVC Bank (@SVC_Bank) March 11, 2023

Clarifying all doubts, SVC Bank issued an announcement distancing itself from the American bank that is now managed by the Federal Deposit Insurance Corporation (FDIC). The statement read:

“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.”

Furthermore, the Indian bank advised its members, customers and stakeholders to avoid the ongoing rumors of its shutdown. The announcement also disclosed the bank’s profitability in the last year.

Related: Silicon Valley Bank collapse: Everything that’s happened until now

On March 13, US President Joe Biden announced his plan to help out the fallen traditional banks, SVB and Signature Bank, “at no cost to the taxpayer.”

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.

— President Biden (@POTUS) March 13, 2023

On the other hand, Biden’s followers on Twitter highlighted that “everything you do or touch costs the taxpayer!”