Name Mixup: How A 116-year-old Indian Bank's Customers Became Unexpected Victims Of SVB Collapse

The sudden collapse of the 16th largest bank in the US, the Silicon Valley Bank (SVB) has surely sent jitters around the world.?

But an?unexpected victim?of the second biggest banking collapse since the 2008 financial crisis, which in no way was related to SVB, has been a 116-year-old Indian bank.??

SVB & SVC Bank Name Mixup

mumbaimirror

The collapse of Silicon Valley Bank in California turned out to create panic among the customers of Mumbai-based?cooperative bank called SVC Bank?(Shamrao Vithal Cooperative).

The similarity in the names SVB and SVC resulted in the 116-year-old Indian bank getting queries from panicked customers regarding the safety of their deposits, as per various media reports.

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 to confirm the rumours of bank default.

"We Have No Relation To SVB"

AP

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SVC 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 rumours 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 which was earlier known as The Shamrao Vithal Cooperative Bank Ltd.

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