New Delhi, Mar 14 (KNN) The distressed Silicon Valley Bank (SVB) might see a mass withdrawal from Indian startups who have millions of dollars stuck with the American bank.

The only thing that could stop the en mass withdrawal is if the US government manages to find a buyer for the beleaguered bank, founders said.

Businesses with accounts at SVB will have full access to their deposits, unlike a previous measure where only an insured amount of USD 250,000 would have been immediately accessible.

As of December 2022, SVB had USD 209 billion in total assets and about USD 175 billion in total deposits.

SVB’s UK arm was sold to HSBC for £1, even as the US government scrambles to find a buyer for the bank.

Sheila Bair, former chairperson of the US Federal Deposit Insurance Corporation (FDIC) – which took over the bank after it was shut down –told the US press that finding a buyer for SVB was “the best outcome.”

However, the UK buy is unlikely to calm Indian startups since they primarily have deposited their money with the US-based SVB, which is headquartered in New York.  (KNN Bureau)