As regulators moved to limit the fallout from Silicon Valley Bank’s demise, the fortunes of a mobile gaming company in India showed the lender’s global reach.
Shares in the company, Nazara Technologies, fell as much as 6.5 percent on Monday after the company said two of its subsidiaries had accounts at Silicon Valley Bank, which collapsed on Friday. The two units together had more than $7.7 million in balances at the failed bank.
Indian officials, like their counterparts in other parts of the world, have sought to calm investors about any possible contagion in the nation’s banking industry. They also said they would meet with representatives of the Indian start-up community in the coming days to understand the impact on them.
For Nazara, “the situation with SVB remains fluid”, said in a statement, but emphasized that the operations of its subsidiaries were not affected by the collapse of the US bank. The company, whose portfolio includes games based on Chhota Bheem, a mythological character from a popular children’s cartoon, said it had sufficient funds. The stock had recouped most of its losses by late afternoon in Mumbai.
The regulatory response in the United States had also calmed the concerns of some investors and bank clients. One such client was Ruchit Garg, who runs the Harvesting Farmer Network, an ag-tech platform, which had deposits with Silicon Valley Bank. Mr. Garg said he was relieved that his company’s deposits were backed by US regulators.
Apart from a few startups, Garg said, the bank’s collapse is unlikely to have a severe impact on the Indian economy. The local stock market may suffer temporarily, she said, adding: “It makes people nervous, and the market is all about emotions.”
India’s main stock benchmarks, the Sensex and the Nifty 50, each fell more than 1.5 percent on Monday afternoon.
