IIFL Finance Ltd (NSE: IIFL): India’s bank regulatory body Reserve Bank of India has recently banned the gold lending company IIIFL. Share hit upper circuit.
In a recent audit, the Reserve Bank of India discovered that there were anomalies in 67 percent of accounts for gold loans of IIFL that were subsequently put on auction.
Non-banking finance firm IIFL has stated that it has attempted to rectify its errors and has contacted the Reserve Bank of India for an audit special to IIFL. Recently, the Reserve Bank of India conducted an audit of the gold loans portfolio for IIFL.
It was found that the Reserve Bank of India has discovered that 67 percent of the gold loans held by IIFL Finance have irregularities in the ratio of gold loans to value.
Following this IIFL Finance was banned by the Reserve Bank of India banned IIFL from making loans in gold.
In the past budget year, IIFL offered 18.9 crore gold loans, of which 82000 accounts were placed on auction due to insolvency by customers.
A review of the Reserve Bank of India found that, out of the 82000 accounts, there were anomalies within 55000 accounts at the moment of the auction.
IIFL has confirmed that its gold loan accounts are facilitated by co-lending partners, and they determine the weight and purity of the gold.
IIFL has declared that it will ensure the best method for evaluation of the quality of gold jewelry is implemented.
IIFL implements an e-auction procedure to auction gold jewelry, wherein major financial institutions, as well as large banks, take part.
IIFL has stated that it plans to conduct auctions for clients who are in default at the threshold of taluka.
It has been discovered by the Reserve Bank of India has concluded that IIFL has not maintained full transparency regarding the charges it imposes on customers.
IIFL has stated that it may split the cost of Rs 200 for the notice that was sent out to customers before the date when the auction takes place.
Additionally, there is an additional fee of 1300 rupees during the auction for gold loans. IIFL has assured RBI that it will try to make the charges clear.
The Reserve Bank of India had requested IIFL to offer gold loans to those with a maximum value of the amount of Rs 20,000 instead of 2,00,000.
IIFL has stated that when there is a ban placed on the use of gold lending business is lifted it will begin to follow the guidelines of the Reserve Bank of India.
IIFL Finance Managing Director Nirmal Jain has confirmed that, in addition to gold loans of as high as Rs 20,000, IIFL is ready to accept additional instructions from the Reserve Bank of India and can be audited by the Reserve Bank of India.
Market experts believe that If IIFL Finance improves its functioning then the Reserve Bank of India can examine it again after six months.
About IIFL Finance Ltd Company
India Infoline Finance Limited (IIFL) (Probity Research and Services Private Limited) was formed on October 18, 1995, in Mumbai.
The company is located in India and can generate and provide an entire range of financial services and revenue.
The company is a leading offline and online broking company and advisory services to institutional and retail customers in the derivative and cash segment.
The company has a global presence, with a strong branch network that spans 4000+ branches spread across 500 plus cities.
Fundamental Analysis of IIFL Finance Ltd
| Market Cap | ₹ 16,035 Cr. |
| Current Price | ₹ 417.95 |
| 52-wk High | ₹ 703.40 |
| 52-wk Low | ₹ 382.20 |
| Stock P/E | 8.93 |
| Book Value | ₹ 260 |
| Dividend | 0.95 % |
| ROCE | 11.5 % |
| ROE | 19.4 % |
| Face Value | ₹ 2.00 |
| P/B Value | 1.62 |
| OPM | 64.4 % |
| EPS | ₹ 47.3 |
| Debt | ₹ 40,768 Cr. |
| Debt to Equity | 4.11 |
IIFL Finance Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 660 | ₹ 705 |
| 2025 | ₹ 715 | ₹ 785 |
| 2026 | ₹ 800 | ₹ 822 |
| 2027 | ₹ 826 | ₹ 895 |
| 2028 | ₹ 900 | ₹ 960 |
| 2029 | ₹ 1000 | ₹ 1100 |
| 2030 | ₹ 1200 | ₹ 1340 |
IIFL Finance Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 24.88% |
| Mar 2023 | 24.85% |
| June 2023 | 24.84% |
| Sept 2023 | 24.81% |
| Dec 2023 | 24.80% |
| FII Holding | |
| Dec 2022 | 27.79% |
| Mar 2023 | 28.09% |
| June 2023 | 28.63% |
| Sept 2023 | 28.31% |
| Dec 2023 | 31.27% |
| DII Holding | |
| Dec 2022 | 3.90% |
| Mar 2023 | 4.04% |
| June 2023 | 5.54% |
| Sept 2023 | 7.30% |
| Dec 2023 | 8.27% |
| Public Holding | |
| Dec 2022 | 43.43% |
| Mar 2023 | 43.01% |
| June 2023 | 40.98% |
| Sept 2023 | 39.59% |
| Dec 2023 | 35.67% |
IIFL Finance Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 4,978 Cr |
| 2020 | ₹ 4,847 Cr |
| 2021 | ₹ 5,968 Cr |
| 2022 | ₹ 6,991 Cr |
| 2023 | ₹ 9,604 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 796 Cr |
| 2020 | ₹ 503 Cr |
| 2021 | ₹ 761 Cr |
| 2022 | ₹ 1,188 Cr |
| 2023 | ₹ 2,001 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 6.11 |
| 2020 | 5.67 |
| 2021 | 5.99 |
| 2022 | 5.53 |
| 2023 | 4.4 |
Last 10 Years’ Profit Growth:
| 10 Years: | 19% |
| 5 Years: | 14% |
| 3 Years: | 44% |
| Current Year: | 28% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 17% |
| 5 Years: | 17% |
| 3 Years: | 18% |
| Last Year: | 19% |
Sales Growth Over 10 Years:
| 10 Years: | 12% |
| 5 Years: | 6% |
| 3 Years: | 20% |
| Current Year: | 21% |
Conclusion
This article is a complete guide about IIFL Finance Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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