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New Delhi: The Indian government, on Monday, issued a statement on the ongoing saga over Silicon Valley Bank (SVB) Bank and said that it does not see risks of contagion to India’s startup or banks on the collapse of the Silicon Valley Bank.
ET NOW has learnt that the government is assessing financial exposure of Indian startups to SVB and is closely monitoring the situation .
The clarification comes amid worries that the collapse of the start-up focused bank could affect Indian startups that have deposits in SVB Bank. According to reports, tere are fears that about 60 Indian startups, that have deposits in SVB Bank, may be impacted by the ongoing crisis in the bank.
The US government has, however, clarified that depositors will not be impacted by the collapse of SVB bank. “Depositors will have access to all of their money starting Monday, March 13,” Treasury Department said in a joint statement. According to Tracxn data cited by many, SVB has invested in 21 startups in India.
Over the weekend, Paytm founder Vijay Shekhar Sharma clarified that Silicon Valley Bank has completely exited its investment in One97 communication and that it is no longer a shareholder in Paytm.
SVB is the second-largest bank failure in the history of the US and the first such incident after the depression of 2008. The bank said that it sold $21 billion of securities at a loss of $1.8 billion in order to ensure liquidity
