Shares of PC Jeweller were locked in a 10% upper circuit when the business informed stock exchanges on 7 July that Punjab National Bank (PNB) had approved their One Time Settlement (OTS) proposal. PNB, one of the primary lenders in the consortium supporting PC Jewellers, gave their approval through a letter on 6 July. 

The financially distressed jewellery company claimed that the terms of the One Time Settlement (OTS) included provisions for the release of bank-owned securities and mortgaged assets in addition to cash and equity components.

This occurred more than three months after PC Jewellers’ OTS proposal was accepted by the State Bank of India (SBI), the nation’s largest lender.

The bank’s decision to withdraw loans totalling Rs 3,466 crore in response to PC Jewellers’ loan default filings marked the beginning of the company’s financial troubles in February 2023.

The company’s 2021–22 annual report states that it obtained loans from 14 different institutions, including Punjab National Bank, Indian Bank, SBI, and Union Bank.

The largest lenders are Indian Bank, which has Rs 226 crore; Punjab National Bank, which has Rs 478 crore; Union Bank of India, which has Rs 530 crore; and SBI, which has Rs 1,060 crore in outstanding debt.

At 1:15 pm, the shares of PC Jewellers were locked 10% higher at Rs 56.16 on NSE.