Business News

MoS Chandrashekhar To Meet Startups This Week To Know Impact Of Silicon Valley Bank Collapse

March 12, 2023
Bharat Times

New Delhi: Union Minister of State Rajeev Chandrashekhar on Sunday said that he will meet startups in the country in the upcoming week to assess the impact of Silicon Valley bank failure, adding the bank’s closure was “disrupting” startups across the world.

“The @SVB_Financial closure is certainly disrupting startups across the world. Startups are an imp part of #NewIndia Economy. I will meet with Indian Startups this week to understand the impact on them and how @narendramodi govt can help during this crisis,” tweeted the Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology.

“A few startups reached out to me and there is a general worry,” Chandrashekhar told the Indian Express. “We won’t let the SVB failure slow their growth,” he added.

Silicon Valley Bank (SVB), a major US lender for venture capital-backed companies, was seized by California banking regulators on Friday. The Federal Deposit Insurance Corporation (FDIC) in its order said that the move is aimed “to protect insured depositors”.

ALSO READ: Silicon Valley Bank Collapse Led To ‘Major Crisis’ In Tech World, Closely Monitoring It: Israeli PM Netanyahu

The closure of SVB is seen as the largest bank failure since Washington Mutual during the peak of the 2008 financial crisis. According to a report by Associated Press (AP), the bank failed after depositors, mostly technology workers and venture capital-backed companies, began withdrawing their money from the bank.

As per a report by Associated Press (AP), the bank failed after depositors, mostly technology workers and venture capital-backed companies, began withdrawing their money from the bank.

ALSO READ: Major US Tech Lender Silicon Valley Bank Closed, Here Is What Led To The Crisis

According to a report by Associated Press (AP), the bank failed after depositors, mostly technology workers and venture capital-backed companies, began withdrawing their money from the bank.

According to a Bloomberg report, Santa Clara, California-based SVB’s problem came to light after its chief executive officer Greg Becker sent a letter to shareholders Wednesday. The letter outlined that the bank had suffered a $1.8 billion loss on the sale of US treasuries. The bank’s parent company, SVB Financial Group, announced that it sold $21 billion of securities from its portfolio and was holding a $2.25 billion share sale to shore up finances. According to analysts, the decision was made in response to significant deposits leaving the bank as a result of a wider slowdown in the startup sector. SVB also anticipated a more drastic drop in net interest income, the report added.