Banks ask jewellery industry to improve transparency, governance

Say payments discipline was high 10 years ago, but many defaulted after the global financial crisis

Turning cautious from many loans going bad, banks are seeking more transparency and better corporate governance in the jewellery industry.

Karnam Sekar, deputy managing director and chief credit officer, State Bank of India, said as these businesses grew in size, partnership firms needed to morph into a corporate structure with improved governance practices. Most of jewellery units worked in a family atmosphere and there was need for professional management, he said.

Bankers said payments discipline among jewellery units was high about 10 years ago but many units defaulted after the global financial crisis. 

Some failed to pay due to a