New Delhi: Following a directive from the Reserve Bank of India (RBI) highlighting irregularities in its gold loan portfolio, IIFL Finance has swiftly implemented corrective measures. The company has formed a dedicated team to execute these actions, including revising policies and procedures.
In response to RBI’s restrictions on new gold loans and related activities, imposed earlier this year due to supervisory concerns, IIFL Finance has taken proactive steps. The regulator initiated a special audit by an independent agency, concluding on April 23, 2024.
Despite the challenges, IIFL Finance continued to manage its existing gold loan portfolio while enhancing its financial position. The company raised Rs 1271.3 crore through rights issues and secured Rs 500 crore via non-convertible debentures (NCDs). Additionally, cost-cutting measures have been implemented to strengthen financial resilience.
Nirmal Jain, Founder of IIFL Finance Ltd, expressed optimism about the company’s prospects, emphasizing improved compliance, controls, and operational enhancements post-audit.
