21 Mar 2023
DiamondWorld Directory
Home |
SBI to Fund Lab Grown Diamonds Trade
India’s largest private lender State of Bank of India has become the country’s first bank to come up with a policy to fund makers of the man-made stone
By: Diamond World News Service
Aug 12 2022 1:18PM
Reference: 26474  


State of Bank of India (SBI) is the first Indian lender to frame a policy to fund makers of lab-grown diamonds which come across as replicas of the natural stones, but are often looked at with suspicion by high-street banks and scoffed at by many traditional diamantaires.

Reflecting the slow shift in the diamond trade, the decision by the country’s largest bank comes amid some of the jewellers putting up factories in Surat to produce synthetic diamonds and many diamond houses considering relocating from the financial capital Mumbai to the southern Gujarat town, which for decades has been the hub of diamond cutters and polishers.

The bank’s operational guidelines for financing man-made diamond houses include the standard prudential practices like "treating non-fund limits at part with funded limits", critically looking at the "dependency on single buyer as percentage of annual sales", obtaining business credit report on overseas buyers from agencies like Dun & Bradstreet, and getting hold of audited balance-sheet of buyers which are house companies and foreign clients.
Very little would be disbursed as working capital. To begin with, (SBI's) Diamond Bourse branch in Mumbai Bandra Kurla Complex and the Commercial branch in Surat have been identified for the business. Also, borrower's exposure to foreign currency has to be fully hedged except where natural hedging is available, the source shared.
Synthetic diamonds generally cost 30-40 per cent less than the natural (or, earth-mined) diamonds. These were first manufactured by General Electric in the 1950s.
While the local production capacity for lab-grown stones is not available, apex industry body Gem & Jewellery Export Promotion Council’s (GJEPC) data showed that $358.3 million worth 'rough (or unpolished) lab-grown diamonds' were imported between April and June 2022, up from $255.9 million in the corresponding period of 2021.

Source: Current Affairs & Times Now

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
*  Company:
*  Name:
*  Mobile:
*  Email:
Subscribe for DiamondWorld weekly Newsletter
Search News by City
Recent Issue
News in Pictures
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 32970
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 10666
GJEPC Chairman Interview
Views: 29027
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 40504
Promo for IJ Awards 2012 at NDTV Profit
Views: 58095
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 69758
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 22435
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 51686
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 54253
Member of:
Supporter of: