Silicon valley bank: A little-known Mumbai-based bank is dealing with a flood of questions from upset customers worried about the lender’s financial viability. The cause is real-world panic caused by disinformation circulated on WhatsApp and social media by naive netizens who confused the initials of the Indian institution — SVC Co-operative Bank (originally Shamrao Vithal Co-operative Bank) — with the defunct Silicon Valley Bank (SVB). What a surprise!
Confusion over similar initials causes panic for Mumbai-based bank
The Mumbai bank was forced to issue a statement assuring its customers that it had no relation to Silicon Valley Bank in the United States. One Twitter handle ‘Love Reading Books’ tagged SVC Bank’s Twitter and asked: “Heard whispers regarding bank default, please confirm”. “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,” the Twitter handle of SVC replied.
SVC Bank clarifies its separate identity from Silicon Valley Bank
The bank is reported to have received numerous additional such inquiries, prompting the lender to clarify that it is unrelated to California’s Silicon Valley Bank (SVB). “SVC Bank (SVC Co-operative Bank Ltd., formerly The Shamrao Vithal Co-operative Bank Ltd.) is a 116-year-old Indian multi-state scheduled urban co-operative bank with operations solely in India. With a total business of over Rs. 31,500 crores and a net profit of over Rs. 146 crores, it has proven, solid, and strong fundamentals (FY 21-22). SVC Bank is unrelated to Silicon Valley Bank (SVB), which was headquartered in California. We urge our members, customers, and other stakeholders not to be misled by rumours and mischief-mongering by unscrupulous elements claiming brand name similarities. “SVC Bank reserves the right to take appropriate legal action against rumour mongers who harm its brand image,” the Mumbai-based cooperative bank clarified later in a statement.
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SVC Bank issues statement to dispel rumors and clarify its separate identity
Silicon Valley Bank, which mostly served tech entrepreneurs in the United States, failed on Friday, becoming the country’s second-largest financial institution failure. Following a run on the bank, the bank was unable to generate the necessary capital to meet redemption requests, resulting in the lender’s demise.
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