The collapse of tech lending giant Silicon Valley Bank has had unexpected impacts in unlikeliest places. The second larget financial institution failure in US history has come as a crisis for many companies, startups and VCs, the company’s initials have also sparked an ‘identity crisis’ of sorts.
The impact was felt by a lesser-known over 100 years old bank in India. Formerly known as the Shamrao Vithal Co-operative Bank, it is now called the SVC Co-operative bank or just SVC bank. However, rumour mongers appeared to have misled people linking the Indian bank to the now shutdown US bank. So much so that SVC Bank was forced to release a statement in this regard.
Talking to Twitter, SVC Bank posted a copy of an official statement clarified that it was "completely unrelated"to Silicon Valley Bank. It requested members, customers and stakeholders to not pay attention to "bseless rumours and mischief-mongering by unscruplous elements insinuating similarities in brand names". The bank also stated that it had "proven, robust and strong fundamentals".
The case of mistaken identity or rumour mongering, whatever it may be called, stemmed some hilarious reactions on the internet.
"The next might be SLB (Sanjay Leela Bhansali) putting out a statement on the matter. India is amazing,” Akash Gupta, co-founder and CEO, Zypp Electric joked in reply to SVC Bank’s post.
“Snapchat vs Snapdeal situation,” another Twitter user noted. “This is so damn funny,” said another one.
Silicon Valley Bank became the biggest banking sector catastrophe since the 2008 financial crisis last week when it collapsed and was shutdown by regulators in California, US. The demise of the bank which has deposits from several startups kicked off a stock market turmoil. The effects of SVB’s failure are still unfolding.
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