IIFL Finance shares rise nearly 4% as RBI revises LTV revision to 85% from 75% for gold loan financiers
By Aditya Bhagchandani Published on June 6, 2025, 12:42 IST
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.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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