IIFL Finance’s Share price: IIFL Finance’s share price ended the previous session on the NSE 3 percent down at ₹598.00.
IIFL Finance Shares plummeted 20% today (March), hitting the lower circuit after the Reserve Bank of India (RBI) directed the company to stop authorizing or disbursing gold loans immediately. According to a press release issued by the RBI, “The Reserve Bank of India, in the exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed IIFL Finance Ltd to cease, with immediate effect, from sanctioning or disbursing gold loans or assigning/securitizing/ selling any of its gold loans.”
IIFL Finance has responded by reiterating its commitment to addressing the RBI’s observations regarding the gold loan portfolio. The company pledges to promptly rectify any issues to ensure compliance with the RBI’s findings. Furthermore, IIFL Finance states its dedication to continuing its efforts to provide gold loan services in the best interest of its customers.
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IIFL Finance shares closed 3% lower at ₹598.00 on the NSE during the previous session. The stock of the company has increased by 31% in the past year. Jefferies, in the meantime, kept its ‘buy’ call on IIFL Finance, aiming for ₹765 a share after RBI intervention.
According to the brokerage, these limitations could be reviewed following a special audit and rectification process, which could have an impact on company earnings and result in a drop in co-lending income as well as an increase in fund costs. According to the company, IIFL Finance’s EPS might be affected by more than 25–30% if the restriction on gold loans lasts for nine months.
