New Delhi: In an interesting twist, shock waves from the US-based commercial lender Silicon Valley Bank (SVB) Friday’s fall was felt in as far away as Mumbai as customers of the SVC Co-operative Bank Ltd were apprehensive about the safety of their deposits.
In an attempt to allay their fears, the Mumbai-based bank issued a statement on Sunday, saying it is “completely unrelated” to the California-based SVB.
Important Announcement#HumSeHaiPossible #svcbank #banking #SVC #Important Announcement pic.twitter.com/p05lHBJm9w
– SVC Bank (@SVC_Bank) March 11, 2023
SVC Bank Allegedly Received a barrage of questions from customers on social media platforms regarding the safety of their deposits.
Your Twitter handle is incorrect. We SVC Bank, erstwhile Shamrao Vithal Sahakari Bank, are one of India’s leading and strongest co-operative banks with a legacy of 116 years. We have no affiliation with Silicon Valley Bank. To learn more, visit https://t.co/NtHBRPdSCG
– SVC Bank (@SVC_Bank) March 11, 2023
Reassuring them, the 116-year-old bank said it has proven “robust” and “strong fundamentals” and requested its customers not to pay heed to “baseless rumours” of the two banks having the same name.
The bank said it reserves the right to take legal action against “rumour mongers” for tarnishing its brand image.
SVB, a four-year American bank, Collapsed It was the second biggest bank failure on Friday after the 2008 financial crisis. US regulators have shut down SVB and frozen its deposits. The move came after a dramatic 48 hours that saw the hi-tech lender’s share price tumble amid a run-on deposit by concerned customers.
According to NDTV, about $175 billion of the bank’s customer deposits are now under the control of the Federal Deposit Insurance Corporation, or FDIC, which has assured depositors full access to their insured deposits after all bank branches opened on Monday morning.
(Edited by Smriti Sinha)