IIFL shares makes 20% lower circuit after RBI bans

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As of 9:54 a.m., shares of IIFL Finance slipped 20 per cent, or Rs 119.6, to Rs 478.5 apiece. The market capitalisation of the company at around the same time stood at Rs 18,253.97 crore.

Shares of IIFL Finance were locked in a 20 per cent lower circuit in Tuesday’s trade (March 5) on the BSE at Rs 478.5 apiece, a day after the Reserve Bank of India (RBI) 

As of 9:54 a.m., shares of IIFL Finance slipped 20 per cent, or Rs 119.6, to Rs 478.5 apiece. The market capitalisation of the company at around the same time stood at Rs 18,253.97 crore. 

The RBI said its inspection of IIFL’s financial position has revealed material supervisory concerns in the gold loan portfolio of the company 

The company can, however, continue to service its existing gold loan portfolio through the usual collection and recovery processes, the RBI said. 

s of December 31, the company’s gold loan portfolio stood at Rs 24,700 crore. Furthermore, the company works with 7 to 8 banks for gold loans, including DSB Bank, Canara Bank, Union Bank etc.

The company will submit its report to RBI in the coming days and is in talks for a special audit. The management said that there is no immediate impact on the book, but if the issue isn’t resolved, then it may have a certain impact. 

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