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

1 min read 12 Mar 2023, 11:55 AM IST Sounak Mukhopadhyay

This bank has played a vital role in advancing the cooperative movement in India for more than 116 years.

The SVB collapse is the largest retail banking collapse since the global financial crisis.

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

One of the customers asked for a justification on Twitter on the “rumours about default". “You have got the twitter 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," the bank replied.

After reading the tweet, ZyppElectric CEO Akash Gupta commented that filmmaker Sanjay Leela Bhansali - also known by SLB - might issue a statement on the issue in the future. “To all the trolls and arm chair commentators, atleast his bank still runs on its founder's vision and fundamentals, unlike others who've gone under. It's great to see them clarifying, in its best intrest (sic)," wrote another user.

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The confusion is such that the bank has decided to release an official statement on the issue. The SVC Bank clarified that it had no connection with Silicon Valley Bank (SVB) in California.

It urged its members, customers and stakeholders to ignore any “baseless rumours and mischief-mongering" insinuating a link between the two banks. The SVC Bank said it reserved the right to take appropriate legal action against rumour mongers who tarnished its brand image.

Also Read: Indian startups, VC funds press panic button on Silicon Valley Bank crisis

With a rich history dating back to 1906, SVC Bank played a vital role in advancing the cooperative movement in India for more than 116 years. As of today, the bank remains one of the most established and widely known names in India's cooperative banking sector. Based in Mumbai, the bank boasts an extensive network of 198 branches, 214 ATMs, and a workforce of over 2300 employees, spanning across 11 states in India.

ABOUT THE AUTHOR

Sounak Mukhopadhyay

Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.