IIFL Finance Shares Surge 13% As RBI Lifts Six-Month Ban On Gold Loan Business | Image Source: Wikipedia (Representative)
IIFL Finance Limited shares on Friday (September 20) experiences a sharp increase in its stock price. This surge in stock prices was in response to a major announcement from the Reserve Bank of India (RBI). The RBI has lifted restrictions on the company’s gold loan business, which had been in place for more than six months.
Following this, the shares of the company surged by up to 13 per cent, hitting an intraday high of Rs 560.60 from the previous close of Rs 497.9 on Thursday.
At 1:34 pm IST, the shares were trading at Rs 535.75, up 8.01 per cent.
Share performance |
The stock of the company today opened at Rs 549.00, and reached a high of Rs 560.60 before falling to a low of Rs 530.00 during the day.
With a market capitalisation of Rs 22,670 crore, the stock traded a total of 8.62 lakh shares, leading to a turnover of Rs 47.45 crore on the BSE by the afternoon.
The stock, with a price-to-earnings (P/E) ratio of 13.32 and a dividend yield of 0.73 per cent, is still far from its 52-week high of Rs 683.19.
RBI Lifts Restrictions on Gold Loan Business
On Thursday, September 19, IIFL Finance through an exchange filing announced that RBI had removed the restrictions that had been affecting its gold loan business since March 4, 2024.
RBI Lifts Ban On IIFL Finance’s Gold Loan Business | Image: IIFL Finance (Representative)
“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,” said the company in the regulatory filing.
“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.
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