New Delhi: Non-bank lender and brokerage operator IIFL Finance said an audit ordered by an agent appointed by the RBI had been concluded, according to an exchange filing. “We wish to inform you that the special audit directed by the Reserve Bank of India (RBI) has been concluded,” said India Infoline Finance Limited (IIFL).
In April, RBI ordered a special audit of the non-bank lender and named Rajvanshi & Associates, a Jaipur-based auditor, to carry out the task. The RBI flagged supervisory concerns related to IIFL Finance’s gold loan book related to certification of purity and weight of gold while sanctioning loans and during auctions conducted after a loan default.
IIFL Finance was barred from sanctioning or disbursing gold loans by the central bank. RBI also flagged an absence of transparency when it came to charges that were levied on gold loan customer accounts. The company faced a cash crunch following the central bank’s order, Reuters reported, citing company officials.
To be sure, the central bank has not made any statement to the effect of the conclusion of the special audit. However, going by precedent, the RBI may not wait long to lift the restrictions if IIFL Finance shows that it has taken steps to be in conformity with its regulatory guidelines. The Reserve Bank of India lifted restrictions on 2 digital loan products of Bajaj Finance in May within less than 6 months.
IIFL share price history
IIFL’s share price closed 14.20 per cent higher at Rs 473 apiece on Friday.
The company’s stock was up 17.58 per cent in the past 5 days
Over the last month, IIFL’s share price was up 21.36 per cent
The company’s stock was down 22.90 per cent over the past 6 months
IIFL’s share price was up 0.80 per cent over the past year
IIFL Finance’s market cap stood at Rs 19,953.59 crore as of June 7, 2024.
IIFL Finance said that a special audit directed by the Reserve Bank of India into its loan books has been concluded. RBI has barred the entity from sanctioning fresh gold loans citing supervisory concerns. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
