The Silicon Valley Bank collapsed recently last week. Post this, the regulators took control of Silicon Valley Bank. This is a key lender to startups across the US since the 1980s.
On Sunday, US authorities unveiled sweeping measures to rescue depositors’ money at the failed SVB. Due to this, nearly 800 employees working at Silicon Valley Bank’s India office are facing uncertainty.
Madhav Chanchani, a journalist also took on Twitter saying, “Many US-based VC firms started to explore India as it became one of the hot new emerging markets what also helped was the rise of Indian Americans in the startups and venture firms in the US Many wanted to tap the opportunity early, and some were also moving back to India.”
“So it was back in 2004 that Silicon Valley Bank set up an office in Bangalore Silicon Valley Bank started bringing in top VC firms like Sequoia, Norwest, and Mayfield to India They made their first few investments in 2004-05 and later launched dedicated funds”, his Tweet added.
“SVB’s India expansion was being led by @AshLilani — who was also overseeing the global operations of the firm The idea was it would become the bank of choice for the portfolio of these VC firms But soon, the firm realized that getting a banking license in India takes decades”, his Tweet added.
The Silicon Valley Bank has an office in Bengaluru Manyata Embassy Business Park. The situation of uncertainty has risen about the future of the bank and the careers of the employees.
This has also raised the following concerns:
- Are other banks facing similar problems?
- Additionally, are the banks in India safe?
Various reports have suggested that the major deposits in India are from corporates, and household savings constitute a major part of bank deposits
Apart from this, a large part of deposits is with public sector banks and the remaining deposits are with very strong private sectors lenders like HDFC Bank, ICICI Bank, and Axis Bank.
