SBI for insurance cover for lending to jewellery industry

SBI for insurance cover for lending to jewellery industry
Kolkata, Feb 29 () Country's largest lender StateBank of India (SBI) said on Saturday that the gems andjewellery industry should have insurance cover for banks to"lend courageously" to the sector.

He said the presence of an insurance cover will alsolower capital requirement of the industry for jewelleryexports.

"Absence of an insurance cover is hurting lending tothe gems and jewellery industry by banks. If there is aninsurance cover, it will help the bank to lend courageously tothe sector," SBI deputy managing director (clients group-I) PN Prasad said here.

Speaking at an event, organised by ICC here, he saidthe exposure of SBI to the jewellery industry is around Rs20,000 crore, adding that the lending growth to the sector hasbeen muted at present.
The SBI official said the "trust of the bankers on thegems and jewellery industry is not there" because of itspractices "which caused misery to the banks".

Fugitive diamantaire Nirav Modi has allegedlydefrauded state-run Punjab National Bank of over Rs 14,000crore.

The gem and jewellery industry should be moretransparent in terms of ownership, management and valuation,Prasad said.

Some kind of credit guarantee will give freedom to thegems and jewellery exporters in the MSME segment, he said.

Prasad also said gold should be treated as a source ofinvestment in the country."For that, there is a need to create awareness amongthe public," he said. DCBDC BDC

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