SBI seizes PC Jeweller's New Delhi assets as loan default hits $415 million
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An SBI official was quoted in a Free Press Journal report as noting that the action was a calculated strategy to get back some of the $140 million (or 1,168.90 crore rupees) that PC Jeweller owes.
In response to PC Jeweller's default of more than 3,466 crore rupees ($415 million) that was disclosed in October, the State Bank of India (SBI) has seized custody of two its prime properties in New Delhi.
An SBI official was quoted in a Free Press Journal report as noting that the action was a calculated strategy to get back some of the $140 million (or 1,168.90 crore rupees) that PC Jeweller owes.
Following the financial setback, PC Jeweller experienced operational interruptions, which caused its fiscal year 2024 second-quarter revenues to drop drastically. The company's Q2 FY24 revenues showed a sharp contrast in performance, falling from 836 crore rupees ($100 million) in the same quarter the previous year to a meagre 33 crore rupees ($39 million).
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SBI is aggressively using the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal as legal channels to handle the growing debts. The bank wants to get back a sizable amount of its unpaid debt to PC Jeweller, or 1,267 crore rupees ($152 million).
PC Jeweller has taken strong measures in reaction to the financial crisis, closing seventeen stores total—thirteen of which are owned and three of which are franchises. The 152 crore rupees ($18 million) in reported losses highlight the difficulties the Indian jewellery industry faces in resolving credit and market trust issues. In order to lessen its financial load, PC Jeweller is concurrently negotiating out-of-court settlements with a number of institutions.
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