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IIFL Finance Share Price today: 20% fall after RBI action. What's happening?
IIFL Finance Share Price: In the previous session, IIFL Finance shares closed 3 per cent lower at ₹598.00 on NSE.
IIFL Finance Share Price: IIFL Finance shares fell 20 per cent today (March) hitting the lower circuit after the Reserve Bank of India (RBI) asked the company to stop sanctioning or disbursing gold loans with immediate effect. The RBI said in a press release, “The Reserve Bank of India, in exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed IIFL Finance Ltd to cease and desist, with immediate effect, from sanctioning or disbursing gold loans or assigning/ securitising/ selling any of its gold loans.”
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IIFL Finance responded, "We reaffirm our commitment to rectify observations of the RBI in the gold loan portfolio to comply with RBI findings at the earliest and will continue with our endeavour to provide gold loan services in the overall interest of customers".
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In the previous session, IIFL Finance shares closed 3 per cent lower at ₹598.00 on NSE. In the last one year, the company's stock has rallied 31 per cent. Meanwhile, Jefferies maintained a 'buy' call on IIFL Finance with a target price of ₹765 per share following RBI action.
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The brokerage said that the restrictions are subject to review after a special audit and rectification process and this may affect its earnings leading to a decline in co-lending income and potentially increase the cost of funds. The firm said that if the ban on gold loan persists for nine months, IIFL Finance's EPS impact could exceed 25-30 per cent.
