Diamond Trade Banking on Relationships

(diamonds.net) - The diamond industry and the banking sector are getting to know each other again, having recognized the gulf that’s developed between them. In that spirit, the diamond financing seminar that took place recently in Mumbai presented a much-needed opportunity to talk. “Unless the industry knows our problems and the lenders understand the industry’s challenges, we can’t move forward,” said Karnam Sekar, deputy managing director at the State Bank of India. The bankers still view diamonds as a high-risk sector. Representatives from the diamond trade, meanwhile, feel there has been significant progress in improving the industry’s level of compliance, transparency and so-called bankability. It appears that both are correct — there has been progress, but more needs to be done given the regulatory environment constraining the banks.