- Shamrao Vithal Co-operative (SVC) clarifies that it has no ties with SVB.
- The Indian bank warns rumour mongers to desist from spreading FUD (fear, uncertainty and doubt).
- SVC assures its customers that it has no partnership or liaison with the collapsed California bank.
An Indian bank (SVC), whose short form is similar to the collapsed American bank (SVB), has published a notice of clarification addressing its customers and rumor mongers about its non-existent relationship with the California-based bank.
A day after Silicon Valley Bank’s (SVB) crash destabilized the financial industry, word quickly spread around the internet and among peers about another banking institution with a similar name to SVB and probably in cohorts with the disgraced bank.
On March 11, SVC Co-operative Ltd., formerly known as ‘Shamrao Vithal Co-op’ (SVC), announced that the 116-year-old bank had only operations within India. Therefore, it was in no partnership or relation with SVB.
“SVC is completely unrelated to Silicon Valley Bank (SVB) based in California,” the announcement reads.
Although the crash of Silicon Valley Bank has racked up many casualties from customers, companies, and investors across the US and UK, SVC, a multi-chain scheduled urban co-operative bank, has debunked the rumors and FUD being spread around.
In the published announcement, the 116-year-old Mumbai-based bank was also forced to reveal its Net Profit and significant achievements as it stands to be one of the oldest banks in India.
The failed bank is currently governed by Federal Deposit Insurance Corporation (FDIC) and is one of the United State’s 20 largest banks by total assets.
SVB, as it is commonly known, was a large financial institution for multiple venture-backed corporations, including several crypto-centric venture firms. The bank was ordered to shut down by California financial regulators after its management announced that it required $2.25 billion in stock.
Since the crash of SVB, regulators in the United States and the United Kingdom have been forced to formulate contingency plans and raise awareness among those affected by the fallen bank.
The president of the USA, Joe Biden, has also been vocal about the tragic incident as he promises to hold those responsible for the sudden fall of the bank accountable for their actions.
However, despite the geographical gap between SVC and SVB, SVC clients were worried if their Mumbai-based bank was affiliated with Silicon Valley Bank. To nip the rumors in the bud, SVC warned that legal actions would be taken against any rumors monger caught “tarnishing” its image.
Conclusion
A 116-year-old Indian bank has debunked the rumors claiming it is affiliated with the fallen American bank—Silicon Valley Bank. The news began spreading around the internet and within its country of operation—India—after the crash of SVB. Investors and customers believed their assets with the Mumbai-based bank were in jeopardy, as various clients of SVB have lamented.
