IIFL Finance Ltd. stock surged to the highest level since early March on Friday as the Reserve Bank of India removed curbs on its gold loan business. The banking regulator had imposed curbs on the non-bank lender's gold business on March 4 citing serious operation lapses.
On Sept 19, NDTV Profit reported IIFL Finance could have faced rating downgrades from the rating agencies in case the RBI had taken more time to lift the curbs.
IIFL Finance is now allowed to sanction, disburse, assign, securitise, and sell gold loans in compliance with all relevant laws and regulations, the company said in an exchange filing.
IIFL Finance share price declined 8.86% to Rs 482.00 apiece, the lowest level since Sept 13 on Thursday. The stock price settled 6.22% lower at Rs 495.95.
Shares of IIFL Finance jumped 13.04% to Rs 560.60 apiece today, the highest level since March 4. The stock, however, pared gains to trade 9.57% higher at Rs 543.20 as of 10:15 a.m., as compared to a 0.52% rise in the NSE Nifty 50 index.
The stock declined 4.96% in 12 months, and 6.6% year-to-date. Total traded volume so far in the day stood at 46 times its 30-day average. The relative strength index was at 66.46.
Out of six analysts tracking the company, four maintain a 'buy' rating, one recommends a 'hold,' and one suggests to 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 9.1%
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