Banking News

svb: SVB collapse: Name mix-up sends an Indian bank’s customers into panic mode

The collapse of Silicon Valley Bank (SVB) in California had impacted the customers of Mumbai-based Indian bank.

A cooperative bank called Shamrao Vithal Cooperative Bank (SVC) had been getting queries from panicked customers regarding the safety of their deposits due to similarity in name of the bank, as per media reports.

The (SVC) Bank was flooded with questions from customers on social media platforms. Recently, the bank issued a clarification stating that they are a completely different entity after a social media user tagged the bank and to confirm the rumours of bank default.

The bank tweeted, “You have got the 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.”

It also issued a clarification on March 11 where it clearly stated that it is not related to SVB in any manner.

“We request our members, customers and other stakeholders not to pay attention to baseless rumors and mischief-mongering by unscrupulous elements insinuating similarities in brand names,” the statement issued by the bank said.

The Mumbai-based SVC Cooperative Bank Ltd is a multi-state cooperative bank. It was earlier known as The Shamrao Vithal Cooperative Bank Ltd.

Source link