The Reserve Bank of India (RBI) on Thursday lifted certain restrictions on IIFL Finance’s gold loan business. The central bank had imposed the restrictions on the company in March.
The Reserve Bank of India (RBI) on Thursday lifted restrictions on IIFL Finance’s gold loan business. The private sector non-banking financial company (NBFC) said that the RBI’s decision is effective immediately and allows it to resume providing gold loans, according to a regulatory filing post-market hours on Thursday.
The central bank had imposed the restrictions on the company’s unit on March 4, prohibiting the NBFC from “sanctioning, disbursing, or assigning/securitising/selling any of its gold loans”.
The RBI’s decision allows it to “resume the sanctioning, disbursal, assignment, securitization, and sale of gold loans in compliance with all relevant laws and regulations”, IIFL Finance said.
The private sector company also said it is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained.
Earlier on Thursday, IIFL Finance shares ended weaker by Rs 30.4, or 5.8 per cent, at Rs 498.4 apiece on BSE.
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Take a look at IIFL Finance stock’s past performance
IIFL Finance shares have gained 9.5 per cent in the past one month, sharply outperforming a 3.4 per cent rise in the headline Nifty50 index.
The Nifty Financial Services gauge has climbed up 6.5 per cent during this period.
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What is IIFL Finance and what does it do?
IIFL Finance is a provider of a range of financial products including loans and mortgages including home loans, gold loans, business loans, loans against property, microfinance, construction finance, and capital market finance.
The company caters to both retail and corporate clients.
