BREAKING

India's SVC not US' SVB: Name confusion creates chaos, instigates fear

By Al Mayadeen English
Source: Agencies
13 Mar 2023 23:26

India's SVC Bank had to clarify that the bank has no relation to the US' Silicon Valley Bank.

A woman walks past the bank The Shamrao Vithal Co-op. Bank Ltd. (SVC) at a market in New Delhi, India, March 13, 2023. (Reuters)

An Indian bank found itself compelled to assure depositors that their money is safe following the collapse of Silicon Valley Bank (SVB) in California, which has gone bankrupt, as they were confused over the similarity between the brand names.

Over the weekend, India's SVC Bank issued a statement and sent messages in English and local Marathi language to its customers in Mumbai ensuring them that their money is safe and the bank has no relation to the US' Silicon Valley Bank.

"We request our members, customers, and other stakeholders not to pay attention to baseless rumors and mischief-mongering ... insinuating similarities in brand names," SVC said in the statement.

SVC held a total of $2.23 billion in 2021-2022.

The branch manager at one of SVC's branches, Sachin Mane, in Mumbai told Reuters on Monday that the lender acted as soon as the rumors began to circulate on social media about the bank's financial health.

"There were a few queries from customers but they mostly came from social media rumors... We wanted to communicate before a lot of people started asking or before it became a big issue," said Mane, referring to the incident as just a confusion.

Even when questions arose on Twitter over "rumours about bank default," SVC replied by saying, "You have got the Twitter to handle wrong. We are SVC Bank ... one of the leading & strongest cooperative banks in India with a legacy of 116 years."

Moreover, the text message the bank sent to their customers stated, "SVC Co-operative Bank Ltd. has no relation with Silicon Valley Bank in California," in an attempt to clear up the confusion.