IIFL Finance is among India’s top two NBFCs in the gold loan business. It has a gold loan portfolio of Rs 24,692 crore which was 32 per cent of its total loans of Rs 77,444 crore at the end of the third quarter of FY24.
“We have been long-term investors in the IIFL group of companies and have full trust and confidence in the company’s strong management team led by Nirmal Jain and R Venkataraman,” said Prem Watsa, chairman of Fairfax India.
“We are confident that Nirmal and Venkat will take corrective actions to meet and exceed RBI’s compliance standards,” said Watsa.
In an interaction with analysts on Tuesday, IIFL Finance managing director Nirmal Jain had said the company is not facing any liquidity issues as it continues collections and recovery from gold loan business.
“Till the issue is resolved we will continue to collect money from repayments. We are adequately covered on liquidity and we do not see any challenges in the foreseeable future. We will also try to cross sell other products from these branches,” Jain said.
IIFL shares fell another 20 per cent on Wednesday after declining 20 per cent yesterday to hit the lower circuit.
“At this crucial juncture, Fairfax India’s and Prem’s generous offer to provide liquidity support is very timely and motivating. We are committed to complying fully with RBI’s directives and growing the business under the regulator’s guidance on the strong foundation of compliance, risk management, and fair practices,” Jain said.
First Published: Mar 06 2024 | 12:43 PM IST