The impact of ongoing steep fall in gold prices on the jewellery industry will be mixed and will depend on gold sourcing norms of individual retailers, but the crash may hit banks, India Ratings said today. "Jewellers who lease a major portion of the gold will positively benefit from the correction, while banks may be affected negatively," India Ratings Director (Corporate Ratings) Deep N Mukherjee said in a report. The rating firm believes retailers like Gitanjali Gems, Tribhovandas Bhimji Zaveri, PC Jewellers and Titan, which usually lease gold, will be relatively unaffected by the sharp fall in bullion prices. However, in such cases, the nominated banks (by RBI) will have to bear the commodity risk and thus incur losses, Mukherjee said.
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