Vijay Shekhar Sharma, the head of the fintech major, explained on Twitter that Silicon Valley Bank, whose operations were unexpectedly shut down owing to financial irregularities, has totally quit One 97 Communications and has no investments as of this point.
Sharma said that SVB got a great return on their entire $1.7 million investment by selling to other private investors in the past.Sharma provided this statement in response to a news story that said SVB had invested $7.42 billion in One97 Communications and its Paytm finance platform.
According to Sharma, the Paytm parent company’s earliest investors included Silicon Valley Bank. SVB, a member of the SVB Financial Group, primarily focuses on financing technology companies and offering a variety of services to venture capital and private equity organizations that make investments in biotechnology and technology. Additionally, it provides high-net-worth customers with private banking services.
The bank had previously announced a $1.75 billion share sale to make up for a $1.8 billion loss on the sale of a portfolio of bonds worth $21 billion, the majority of which were US Treasury bonds. This created concerns about the bank’s ability to manage the business and raised eyebrows.
The biggest commercial bank in Silicon Valley went out of business. This is thought to be the biggest bank failure since the 2008 financial crisis.California banking officials acted fast to shut it down after assessing the potential damage it could inflict on the entire system. The bank’s stock price fell more than 60% during the course of two days, significantly depleting investors’ wealth.
According to Reuters, as of 2022, about 89% of the bank’s $175 billion in deposits were uninsured.
According to rumors, the FDIC is scrambling over the weekend to locate another bank that will merge with Silicon Valley Bank. Despite the fact that there is a significant gap in the system and that the economy is slowing down, analysts do not believe that it will have any effect on the Indian financial system.