BENGALURU, Sept 19 (Askume) – IIFL Finance (IIFL.NS) said on Thursday the Reserve Bank of India has lifted the ban on the company’s gold loan business, relieving the bank of a major burden.
Reserve Bank of India (RBI)The company was ordered to stop offering gold loans in March, citing regulatory concerns over its gold loan portfolio.
Gold loans under management of the company stood at 30% of its total assets in the financial year ended March 2024 .
The bank on Thursday said it will now resume sanctioning and disbursing gold loans after over six months of restrictions.
IIFL Finance shares fell 14.5% during this period.
IIFL Finance had said in June that losses caused by the ban were ” significant ” and that the focus this year would be on “compliance” and “risk management”.
After the ban came into effect, IIFL FinanceThe quarterly results were delayed andSeveral financings were approved to boost liquidity .
Fairfax India (FIHU.TO), the largest shareholder of IIFL Finance, has agreed to provide up to $200 million of liquidity to the company.
