California banking regulators shut down Silicon Valley Bank (SVB) on March 10
MUMBAI:
Indian startups had deposits value about $1 billion with embattled Silicon Valley Bank and the nation’s deputy IT minister mentioned he had instructed that native banks lend extra to them going forward.
California banking regulators shut down Silicon Valley Bank (SVB) on March 10 after a run on the lender, which had $209 billion in belongings on the finish of 2022.
Depositors pulled out as a lot as $42 billion on a single day, rendering it bancrupt. The US authorities finally stepped in to make sure that depositors had entry to all their funds.
“The subject is, how will we make startups transition to the Indian banking system, fairly than rely on the complicated cross border US banking system with all of its uncertainties within the coming month?” India’s state minister for know-how, Rajeev Chandrashekhar mentioned late Thursday night time in a Twitter areas chat.
Hundreds of Indian startups had greater than a billion {dollars} of their funds in SVB, based on his estimate, Mr Chandrashekhar mentioned.
Mr Chandrashekhar met greater than 460 stakeholders this week, together with startups affected by SVB’s closing, and mentioned he had handed on their strategies to Finance Minister Nirmala Sitharaman.
Indian banks may provide a deposit-backed credit score line to startups that had funds in SVB, utilizing these as collateral, Mr Chandrashekhar mentioned, citing one of many strategies he had handed on to the Finance minister.
India has one of many world’s largest startup markets, with many clocking multi-billion-dollar valuations in recent times and getting the backing of international traders, who’ve made daring bets on digital and different tech companies.
(Except for the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)