Jefferies has upgraded IIFL Finance to 'Buy', saying that an improvement in earnings visibility will support the company's better multiples.

Shares of IIFL Finance surged over 13% after the Reserve Bank of India lifted restrictions on its gold loan business. The restrictions had been in place since March 2024. The RBI's decision allows IIFL Finance to resume its gold loan operations immediately,

IIFL Finance said that the RBI has lifted these restrictions, allowing the company to fully resume its gold loan operations in compliance with applicable laws and regulations

In a much-needed relief for IIFL Finance, the Reserve Bank of India (RBI) has lifted ban on its gold loan business. Post the ban lift, Jefferies estimates the company's profits to grow at 50% CAGR over FY25-27.

The uptick in IIFL Finance share price came after the Reserve Bank of India (RBI) lifted ban on the company's gold finance business.

RBI has lifted the restrictions on IIFL Finance's gold loan operations, effective immediately. These restrictions were placed in March due to irregularities in their gold loan business. IIFL Finance assures high compliance standards moving forward.

In an exchange filing, the company said, “the RBI's decision to lift restrictions is effective immediately and allows the company to resume sanctioning, disbursal, assignment, securitisation, and sale of gold loans in compliance with all relevant laws and regulations.