Speaking at a function organised by ICC, P. N. Prasad, Deputy Managing Director
Commercial Clients Group-I of the State Bank of India (SBI), the country’s largest lender,  stated that the gems and jewellery industry should be extended insurance cover so that banks were encouraged to “lend courageously” to the sector, media reports state.

Prasad estimated that the SBI’s exposure to the gems and jewellery industry is around Rs 20,000 crore. He noted that the growth in lending to the sector “has been muted at present”.

He also said that the availability of insurance cover “will also lower capital requirement of the industry for jewellery exports”.

"Absence of an insurance cover is hurting lending to the gems and jewellery industry by banks,” Prasad was quoted as saying. “If there is an insurance cover, it will help the bank to lend courageously to the sector."  

On the other hand, he emphasised that the gem and jewellery industry should be “more transparent in terms of ownership, management and valuation”.