Following PC Jeweller's staggering default of over Rs 3,466 crore in October, the State Bank of India (SBI) has assumed control of two prime properties in New Delhi. This financial setback has led to operational disruptions for PC Jeweller, evidenced by a sharp decline in their second-quarter revenues for the fiscal year 2024.

SBI is pursuing the recovery of Rs 1,267 crore from the New Delhi properties, strategically aiming to recoup a portion of the Rs 1,168.90 crore owed by PC Jeweller. The bank is actively employing legal channels, utilizing institutions such as the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal to facilitate the recovery process.

PC Jeweller's overall performance has suffered due to its financial challenges. In Q2 FY24, the company reported a drastic plunge in revenues to Rs 33 crore, a significant drop from Rs 836 crore in the same quarter the previous year. This downturn has also resulted in reported losses totalling Rs 152 crore.

In response to the crisis, PC Jeweller has made strategic decisions, including the closure of seventeen stores, comprising fourteen owned outlets and three franchises. Simultaneously, the company is actively negotiating out-of-court settlements with various banks to address its mounting debts. The broader challenges facing the Indian jewellery sector, particularly issues related to credit and market trust, are underscored by the ripple effect on PC Jeweller.