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IIFL Finance shares fly: Shares of finance and investment services company IIFL Finance zoomed as much as 12.71 per cent to hit an intraday high of Rs 557.15 per share on Friday, September 20, 2024.
The uptick in IIFL Finance share price came after the Reserve Bank of India (RBI) lifted ban on the company’s gold finance business.
In an exchange filing, IIFL FInance said, “We wish to inform you that the Reserve Bank of India (RBI), through its communication dated September 19, 2024, has lifted the restrictions imposed on the gold loan business of IIFL Finance Limited (“the Company”).”
These restrictions were earlier imposed on March 04, 2024, which prohibited the company from sanctioning, disbursing, or assigning/securitising/selling any of its gold loans.
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, IIFL Finance said in a statement.
“The company is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained,” it added.
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IIFL Finance Ltd is a diversified non-banking financial company (NBFC) in India, specialising in a range of products including home loans, gold loans, business loans, and microfinance.
As of FY24, the company reported total assets under management (AUM) of approximately Rs 76,700 crore, up from Rs 37,900 crore in FY20, and operates around 4,800 branches compared to 2,300 in FY20.
With a customer base exceeding 80 lakh, IIFL has a strong foothold in various business segments, notably home loans (35 per cent of AUM), gold loans (30 per cent), and microfinance (17 per cent).
The company is particularly focused on affordable housing and has established itself as a leader in the sub-Rs 20 lakh home loan segment.
Additionally, IIFL is enhancing its digital offerings through its 'My Money' app, providing instant unsecured loans in collaboration with fintech partners.
Following a demerger in May 2019, the company streamlined its operations to focus on loans and mortgages, maintaining a capital adequacy ratio of around 20 per cent and a gross NPA of 2.3 per cent as of FY24.
At 9:31 AM, shares of IIFL Finance were trading 11.09 per cent higher at Ra 549.10 per share. In comparison, BSE Sensex was trading 0.27 per cent higher at 83,409.17 levels.
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