Silicon Valley Bank: This bank was sold for just Rs 100

By Anil Gundmi Last updated Mar 14, 2023 - 11: 32 am

Bank Sale: HSBC Acquires SVB UK has bought the British division of Silicon Valley Bank, which is insolvent in America. This sale was done for only 1 British pound. That means HSBC bought SVB UK for 100 rupees. Silicon Valley Bank sale: This bank was sold for just Rs 100. Silicon Valley Bank of the UK division had applied for liquidation in Britain 3 days ago, on March 10.

After this, SVB was sold .The Central Bank of Britain issued a statement in this regard and said that it was decided to sell SVB UK Bank in consultation with various authorities. The Bank of England consulted with the Prudential Regulation Authority, HM Treasury and the Financial Conduct Authority (FCA). After that, it was decided to sell SVB UK Ltd (SVBUK), a subsidiary of Silicon Valley Bank of America, to HSBC UK Bank.

The Bank of England said in a statement that the move was made to save SVB UK from distress and to keep its banking services going and to preserve confidence in Britain’s financial system. Even if SVB UK is sold, its banking management will remain in the hands of the same bank. All its services will continue as normal. SVB UK’s customer account etc will not change.

Customers can continue to do business with SVB UK as they have done before. The Bank of England has made it clear that the loan instalment payment process will continue as before. British division Silicon Valley Bank is a fairly profitable company. In its report for the year 2022, it had shown a profit of 88 million sterling pounds (around 872 crore rupees).

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The acquisition of the UK arm of the SVB by HSBC will help secure deposits worth 6.7 billion pounds sterling (over Rs 66,438.76 crore). Silicon Valley Bank UK Limited also had loans of around 5.5 billion pounds sterling (about Rs 54,533.88 crore) as of March 10.