Defunct SVB Financial Group to sell Indian subsidiary to First Citizens Bancshares (updated)

First Citizens Bancshares (Tennessee)

20/03/2024 20:56

(Adds details on hearing in second paragraph; adds background
in third and fourth paragraph)
       March 20 (Reuters) - The bankrupt parent company of
Silicon Valley Bank plans to sell its entire stake in Indian
subsidiary SVB Global Services India to lender First Citizens
Bancshares  FCNCA.O , it said in a filing on Wednesday.   
    SVB Financial Group is currently seeking approval from a
bankruptcy court, with a hearing scheduled for April 9. The
company anticipates that the transaction will close after this
hearing. 
    The company filed for bankruptcy last year after Silicon
Valley Bank collapsed due to a bank run. The third-largest bank
failure in U.S. history also brought down Signature Bank and
wiped out more than half the market value of several other U.S.
regional lenders. 
    First Citizens later purchased SVB's assets and deposits for
up to $500 million in stock — a fraction of what the bank was
worth before it failed.

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((Mehnaz.Yasmin@thomsonreuters.com;))