Bank sold for 99 rupees? what is the reason

British multinational bank HSBC has bought the British unit of bankrupt Silicon Valley Bank (SVB) in the US for just Rs 99. The bank informed about this on Monday. HSBC chief executive Noel Quinn said the acquisition is of strategic importance to the bank’s existing UK business and strengthens its commercial banking franchise. As well as enhancing our ability to serve innovative and fast-growing companies in the UK and internationally, including in the technology and life sciences sectors.

Let us tell you that California-based Silicon Valley Bank, America’s 16th largest bank, was shut down on Friday by the California Department of Financial Security and Innovation. The bank ran into trouble when its customers, including venture capital firms and those backed by them, started withdrawing their deposits.