WDC India: Day 2

Day 2: Session 1: Credits& KYC – Financing the Trade in Challenging Times
WDC India: Day 2

#Post 1:

Erik A. Jens, CEO, ABN Amro

“All the industry bodies should monitor the behaviour of their members compared to their standards and award the ones who are living the principles. It's all about sustainability. We do see innovation, technology and up-gradation in this industry. It's good as that is what fuels growth. For good companies there is enough liquidity. There is no need of more financing but we need liquidity providers.”

#Post 2:

Howard Davies, Head Commercial Development, De Beers during his address says, “The times are changing. The trouble is that though the times are changing, some diamond companies have turned the deafear to the change. There is almost a pride about lack of corporate structuring, book keeping, thinking diamond is different. But, this is making it very difficult for new banks to enter our industry. We are now looking for companies that believe in corporate structuring. The sight holder financial compliance, De Beers contractual requirements from March 2015.”

#Post 3:

Hasmukh Adhia, Secretary, Financial Services, Government of India, says “In the gem and jewellery industry, the credit growth was 1.4 per cent much lower than 10.19 per cent of other industries. This is because of the large non-performing assets in this industry. This is matter of a concern for us. The last few years have also witnessed shake of trust in this industry. There is a low trust factor with the bankers due to the recent unfortunate events from the industry's side. The relationship between industry and bankers is being worked upon. We have only 40 per cent of international finance whereas we polish 70 per cent of diamonds of the world in terms of volume. This is a great opportunity for international banks to chip to our industry in India. The relationship between the bankers and industry is sure to strengthen very soon.”

#Post 4: Kishore Lall, Managing Director, Global Head, Diamond and Jewellery/Wholesale Banking - Origination and Client Coverage, Standard Chartered Bank says, “Diamond industry is an exciting industry. It's an international group to its truest term. The enormous creativity and the entrepreneurial drive is the power of this trade. Bankers are in risk taking business. Risks are acceptable to us but lack of transparency or conjured up transactions that are shown to the banks is not acceptable. There have been some players and their defaulting which has created a stigma for the whole industry. The Indian banks have done an excellent job in fuelling the growth of this industry. But, trust has to be restored for a global change.”

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