The Reserve Bank of India (RBI) on Thursday lifted restrictions on IIFL Finance’s gold lending business. The private sector non-banking financial company (NBFC) said the RBI’s decision is effective immediately and allows it to offer gold loans again, according to regulatory hours of after-market filings on Thursday.
The central bank had imposed restrictions on the company’s unit on March 4, prohibiting the NBFC from “sanctioning, paying, or assigning/securing/selling any of its gold debt”.
The RBI’s decision allows it to “resume sanctioning, issuance, allotment, warehousing, and sale of gold loans in accordance with all relevant rules and regulations”, IIFL Finance said.
The private equity firm also said it is committed to raising the standard of compliance and will continue to ensure that the corrective measures taken are sustainable.
Earlier on Thursday, shares of IIFL Finance ended weaker by Rs 30.4, or 5.8 per cent, at Rs 498.4 apiece on the BSE.
Check IIFL Finance stock performance in the past
IIFL Funds shares have gained 9.5 percent in the past one month, outperforming the 3.4 percent rise in the headline Nify50 index.
The Nifty Financial Services gauge rose 6.5 percent during this period.
What is IIFL Finance and what does it do?
IIFL Finance is a provider of a wide range of financial products including loans and collateral including home loans, gold loans, business loans, property loans, microfinance, construction finance, and mass market finance.
The company caters to both retail and corporate customers.
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