Insurance cover for lending to jewellery industry- SBI

Recently, the largest lender of India, State bank of India stated that alll the jewellery and gems industry must have insurance covered for banks to lend courageously to the sector.

According to the SBI deputy managing director-“Absence of an insurance cover is hurting lending to the gems and jewellery industry by banks. If there is an insurance cover, it will help the bank to lend courageously to the sector,”

He said that the total exposure of SBI to the gems industry must be around 20,000 crore. And on this, SBI official said- “trust of the bankers on the gems and jewellery industry is not there” because of its practices “which caused misery to the banks”.

Recently as we all know, the daimond marchant, Nirav Modi has done a fraut from Punjab National bank of around 14,000 crore. And for this, The gem and jewellery industry should be more transparent in terms of ownership, management and valuation. Some kind of credit guarantee will give freedom to the gems and jewellery exporters in the MSME segment, “For that, there is a need to create awareness among the public,”. Prasad added.

He said that the gold must be treated as a source of investment in our country and should be taken seriously now.