India's IIFL Finance falls on report of co facing downgrade risks on gold loan ban

IIFL Finance

19/09/2024 07:57

** IIFL Finance  IIFL.NS  slides 6.2% to 496 rupees
    ** Non-bank finance co faces downgrade risks as a regulatory
ban on its gold loan business remains unresolved, Bloomberg News
reports
    ** Report adds that a potential downgrade may pressure the
firm's borrowing channels and could cut more than 9,000 jobs if
ban persists
    ** In March, RBI ordered co to stop disbursing gold loans
over "material supervisory concerns" in its gold loan portfolio
    ** Stock has declined ~14% since March 4, when the RBI
action came in
    ** YTD, IIFL is down ~15% vs Muthoot Finance  MUTT.NS  and
Manappuram Finance  MNFL.NS  gaining ~37% and ~19%, respectively

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))