The Banker’s Meet, organised by the Gem & Jewellery Export Promotion Council (GJEPC), served as a key platform to facilitate essential conversations between the dynamic diamond industry and prominent financiers.
The Gem and Jewellery Export Promotion Council (GJEPC) convened a meeting in Mumbai that brought together top bankers working with the diamond industry. This interactive session, held on 28 October at the BKC, Mumbai, was designed to create an open dialogue between diamond industry stakeholders and lending institutions. The primary objective was to assess the current challenges facing the sector and understand their potential impact on bank lending.
The meeting was attended by key figures from the GJEPC, including Chairman Vipul Shah, Vice-Chairman Kirit Bhansali, Banking Insurance & Taxation Sub-Committee Convener Saunak Parikh and Executive Director Sabyasachi Ray. Also present were Anoop Mehta, President, Bharat Diamond Bourse (BDB) and Biju Pattanayak, Executive Vice President and Head of Global Diamond & Jewellery Group, IndusInd Bank, a luminary in the banking sector.
In his address, Vipul Shah, Chairman of the GJEPC, expressed his optimism: “It is my hope that this meeting will serve as a platform for productive discussions, fruitful collaborations and the building of lasting partnerships between the diamond and banking sectors. By working together, we can unlock the true potential of these industries and chart a course for a more prosperous and sustainable future.
Speakers stressed the importance of “de-inventorisation” of the diamond chain as a critical step in reviving profitability, building trust and restoring confidence in the diamond market. An encouraging sign, they said, was the increasing shift in jewellery consumption from gold to diamonds within India, indicating positive developments in the domestic market. In addition, emerging markets such as India are poised to account for a significant share of global diamond consumption, potentially 20-30%. A resurgent Japanese economy also bodes well for the industry.
China’s underperformance in terms of diamond jewellery consumption remains a concern. Banks have also been under pressure due to lower returns on capital. However, on a positive note, diamond industry receivables have fallen by around 30% since March this year. However, this also poses a challenge for the banks as they will have to bear the cost of capital on the sanctioned limits under the new Basel regulation.
