RBI lifts restrictions on IIFL gold loan business
Fri Sep 20 2024
The Reserve Bank of India on Thursday lifted the restrictions on IIFL Finance’s gold loan business, the company said in an exchange filing. The RBI’s decision is effective immediately and allows the company to resume the sanctioning, disbursal, assignment, securitization, and sale of gold loans in compliance with all relevant laws and regulations, said IIFL Finance.
The restrictions imposed by the central bank had prohibited the company from sanctioning, disbursing, or selling any of its gold loans. The restrictions were imposed after the regulator observed certain material supervisory concerns in the company’s gold loan portfolio during the inspection.
Following these restrictions, IIFL Finance reported a sharp fall of around 35% in its gold loan book for April-June.
The company’s gold loan book has reduced to Rs 6,265 crore as of June 30, from Rs 9,634 crore as of March 31.
IIFL Finance reported a Rs 23-crore loss in the quarter that ended June 30, 2024, as against Rs 151-crore profit in the year-ago. On an annual basis, the NBFC’s revenue from operations was flat at Rs 1,012 crore in April-June.
Today, shares of IIFL Finance closed 5.8% lower at Rs 498.40 on the Bombay Stock Exchange.
Source: https://www.financialexpress.com/