PNB scam: Jewellers face working capital crunch as banks make loans harder

Lenders have increased the number of loan-approving staff; both fund-based assistance and opening LCs and executing export orders have been impacted

Jewellery manufacturers and retailers have started facing a working capital squeeze, due to intensified scrutiny of the sector from banks, with multiple numbers of officials needed now to sanction loans.
 
This follows the Rs 127-billion Punjab National Bank (PNB) scam, involving Nirav Modi and Nehul Choksi’s Gitanjali Gems. The new caution on loan disbursal apart, it is also close to the end of the current financial year, with most companies having already used their full credit limit — little remains for disbursal.
 
Even so, whatever is left to give out has had bankers dallying on disbursement, with additional