Shares of IIFL Finance Ltd gained 3.84% to ₹445.70 on Friday after the Reserve Bank of India (RBI) announced significant regulatory relief for small gold loans. RBI Governor Sanjay Malhotra confirmed that the loan-to-value (LTV) ratio will be increased to 85% from 75% for gold loans up to ₹2.5 lakh per borrower, inclusive of interest.
The stock opened at ₹429.20 and touched a high of ₹452.45 during the session, supported by strong volumes of 1.75 million shares. IIFL’s market capitalization stood at ₹189.61 billion, with a P/E ratio of 51.12.
In addition to the LTV revision, the RBI also stated that credit appraisal requirements will no longer apply for gold loans below ₹2.5 lakh. Moreover, end-use monitoring will only be necessary under the Priority Sector Lending (PSL) framework. The final guidelines are expected to be released today or by Monday.
The announcement is part of the RBI’s broader policy update, which included a 50 basis point repo rate cut to 5.5%, a downward revision in CPI inflation to 3.7% for FY26, and a maintained GDP growth forecast of 6.5%. These changes are expected to boost credit availability and reduce compliance burdens, especially for gold loan-focused NBFCs like IIFL.
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