State Bank of India to Increase Diamond Financing

The State Bank of India (SBI) is to increase its financing of diamond industry projects, aiming to provide finance for the establishment of jewelry manufacturing plants, the purchase of machinery and the export of loose diamonds, according to Managing Director C Bhattacharya.

“The bank is aiming at meeting the entire range of the industry's needs through various products specially designed for the requirements of the diamond industry in its integration towards jewelry exports,” he said.

“During fiscal 2003-04, SBI's exposure to the diamond industry grew by 40.3 percent. SBI will be maintaining the same growth rate in this fiscal [year] too.”

SBI said the aggregate financing exposure of the bank to the diamond industry increased to Rs 22.1 billion ($504 million) as of March 2004, spread across 300 accounts.

The bank forecasts its aggregate exposure would end up around Rs 26 billion ($593 million) by the end of this fiscal year.