IIFL Finance Ltd shares fell sharply in Tuesday’s trade, sliding nearly 8% intraday as investor sentiment remained under pressure following regulatory overhang from the RBI’s gold loan guideline announcement. The stock was trading at Rs 307.35, down 7.85% or Rs 26.20, compared to the previous close of Rs 333.55.
The stock touched an intraday low of Rs 311.50, with heavy volume of over 2.62 million shares traded. The company’s market capitalization has now dropped to Rs 132.19 billion.
RBI gold loan norms drag sentiment
While the RBI’s policy decision on gold loan regulations directly targets lenders such as Muthoot Finance and Manappuram Finance, it has also spooked investors in broader NBFCs (Non-Banking Financial Companies) like IIFL Finance, which has exposure to secured lending against gold.
The RBI, in its latest Monetary Policy Committee (MPC) statement, said it will issue comprehensive regulations covering both prudential and conduct norms for loans backed by gold jewellery and ornaments. The aim is to harmonize the rules across regulated entities and address observed concerns in the segment.
Even though IIFL has a diversified lending portfolio, the regulatory tightening in one of its key segments has weighed heavily on the stock price.
Market-wide context: Other key RBI MPC decisions
Along with announcing tighter gold loan regulations, the RBI also unveiled several major decisions:
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Repo rate cut by 25 bps to 6.00%
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SDF (Standing Deposit Facility) rate reduced to 5.75%
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MSF (Marginal Standing Facility) rate now at 6.25%
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Monetary policy stance changed from neutral to accommodative
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CPI inflation projected at 4% for FY26
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Real GDP growth forecast cut to 6.5% for FY26, down from 6.7%
