M2M Day 2: Banking and Finance

The first afternoon session on Day Two was devoted to the Banking sector. It was addressed by Victor Van Der Kwast, CEO, International Diamond and Jewelry Group (ID&JG), ABN AMRO Bank NV; Pierre De Bosscher, chairman of the Executive Committee Antwerp Diamond Band and A P Verma, deputy managing director, State Bank of India.

The international representatives, Van der Kwast and De Bosscher spoke about the opportunities that existed in the sector and said that banks were willing to keep supporting the industry and also look at entering new geographical areas. They however also made a plea for support – stronger collateral security, systematic repayments and other safeguards. Verma however raised questions about some of the practices adopted by sections of the industry and called on the diamantaires to be more transparent and open in their transactions with the banks. He offered support to the industry but called for reciprocal action from the other side as well. In the ensuing discussion, trade bodies like the GJEPC and DIL pledged their assistance to the banks in dealing with anyone who was misusing the trust and confidence, but also pointed out that there had been minimal NPAs in the sector. A suggestion was also made that to the SBI to consider establishing a dedicated division that dealt with the industry (as other international banks have done) so that the bankers associated with us could understand the specific nature of the intricacies involved in the diamond trade.