RBI lifts ban on IIFL
Reserve Bank of India (RBI), has lifted the restrictions imposed on the gold loan business of IIFL Finance with immediate effect, the company informed in a short stock exchange notice.
RBI had prohibited the company from sanctioning, disbursing, or selling any of its gold loans in March this year citing certain supervisory concerns. The central bank had cited deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default, breaches in loan-to-value ratio (LTV), significant disbursal and collection of loan amount in cash far in excess of the statutory limit among others, while announcing the ban.
IIFL said that the lifting of the ban with immediate effect, allows the company to resume the its gold loans business in compliance with all relevant laws and regulations.
The RBI lifting the ban allows the company to recover its gold loan book which fell 35% in the April-June quarter after the RBI ban. Gold loans stood at 45% of the company’s loans book down from 54% at the end of March. The company’s profit declined 28% to Rs 338 crore for June quarter mainly due to a slowdown in the gold loan business.
Three local rating companies — ICRA Ltd, Crisil Ltd and Care Ratings Ltd had put it under rating watch with negative or developing implications following the ban. International credit assessor Fitch Ratings also put its B+ rating on negative watch.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By —
