Bankers want jewelry industry to become extra transparent

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Bankers are not averse to financing jewelry and gems businesses; however, they feel that jewelry and gems industry needs to become more organized, transparent and compliant to regain trust.

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“Incidents like the Gitanjali Gems and Nirav Modi and have broken down trust level for the jewelry and gems industry. There is need to build the trust by becoming transparent and complaint,” said by chairman Union Bank of India Kewal Handa on July 2 at Manthan Gems and Jewellery Conclave 2019. 

The gems and jewelry industry should learn from pharmaceutical industry, who had taken steps like becoming more compliant, getting international accredation and building the stronger federation.

“Pharmaceutical industry has completely changed themselves and set up structures and processes for getting more organized,” he said.

The current liquidity disaster in gems and jewelry industry and bank’s non-performing assets have coincided affecting lenders giving loans to gems and jewelry industry, he said.

By end of 2017, bank financing to gems and jewelry industry was at Rs 70,000 cr, which has now come down to less than Rs 30,000 cr.

IndusInd Bank EVP Biju Patnaik, said gems and jewelry business funding is complex.

NSE overcame several tests by adoption of the technology, focus on the customer, compliance and strong market growth. Said by NSE managing director and CEO Vikram Limaye

These are relevant to the jewelers too,” he added.

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