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116-year-old bank in Mumbai in trouble after SVB collapse


The repercussions of the fall of Silicon Valley Bank (SVB), the largest retail banking collapse since the global financial crisis, set off a chain reaction of consequences that is still fully understood. Surprisingly, a 116-year-old cooperative bank in Mumbai has also been affected by the sudden death of this US bank. The reason is the name: Shamrao Vithal Co-operative Bank (SVC Bank).

One of the customers took to Twitter to ask for a justification for the “rumours of default”. legacy of 116 years. We have no relationship with Silicon Valley Bank,” the bank replied.

After reading the tweet, ZyppElectric CEO Akash Gupta noted that filmmaker Sanjay Leela Bhansali – also of SLB fame – might release a statement on the matter in the future. “For all the trolls and armchair commentators, at least his bank is still running on the founder’s vision and founding principles, unlike others who have gone under. Great to see them clarifying, in the best interest (sic),” another user wrote.

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The confusion is so great that the bank has decided to release an official statement on the matter. The SVC Bank clarified that it had no affiliation with California’s Silicon Valley Bank (SVB).

It urged its members, clients and stakeholders to ignore any “unfounded rumors and mischief” insinuating a link between the two banks. The SVC Bank said it reserves the right to take appropriate legal action against rumor mongers tarnishing its brand image.

Read also: Indian Startups, VC Funds Press Panic Button Over Silicon Valley Bank Crisis

With a rich history dating back to 1906, SVC Bank has played a vital role in promoting the co-operative movement in India for over 116 years. As of today, the bank remains one of the most established and widely known names in India’s co-operative banking sector. Based in Mumbai, the bank has an extensive network of 198 branches, 214 ATMs and a workforce of over 2,300 employees across 11 states in India.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.