New Delhi, 20 September (H.S.):

On the last day of trading in Dalal

Street, IIFL Finance stock climbed to a high of ₹560, marking its peak since

late February. Share price rose 11 percent in early trading, following the

Reserve Bank of India’s (RBI) decision to lift restrictions on the company’s

gold loan operations. The RBI had imposed the curbs on March 4, 2024.

The RBI's move, effective

immediately, allows IIFL Finance to resume sanctioning, disbursing, assigning,

securitizing, and selling gold loans by all applicable laws and regulations.

RBI, through its communication

dated September 19, lifted the restrictions imposed on the gold loan

business of the company. The RBI's decision is effective immediately and allows

the Company to resume the sanctioning, disbursal, assignment, securitisation,

and sale of gold loans in compliance with all relevant laws and regulations. The

Company is committed to upholding the highest standards of compliance and will

continue to ensure that the remedial actions taken are sustained, said

IIFL Finance in its statement to the Regulator.

Gold loans constituted 21% of IIFL's

total loan assets as of June 30, down from 30 percent at the end of March. For the

quarter ending June 30, IIFL reported a net loss of ₹22 crore, a significant

decline from a profit of ₹151 crore in the same period last year, largely due

to the RBI's restrictions.

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Hindusthan Samachar / Nimish kumar