Gems and jewellery sector risky, says State Bank of India

The cost of borrowing for the industry has gone up in the last few months which in nothing but direct risk-and-reward relationship at which banks do the pricing

State Bank of India (SBI), country’s largest lender, on Friday said the cost of funding to the gems and jewellery sector will remain high as long as the industry is seen risky in view of the recent fraud by diamantaire Nirav Modi’s firms.

SBI managing director Dinesh Kumar Khara, speaking at a seminar organised by Gem and Jewellery Export Promotion Council (GJEPC) here, said as a lender it appreciates the initiatives taken by the council to mitigate concerns of the banks. 

The cost of borrowing for the industry has gone up in the last few months which in nothing but direct risk-and-reward