IIFL Finance shares jump over 6% on conclusion of special audit directed by RBI

The financial services company informed the stock exchanges on June 4, 2024, that the special audit directed by RBI has been concluded.

“We shall continue to keep the stock exchanges and all relevant stakeholders informed about material developments, if any, related to the progress of the same in adherence to regulatory guidelines,” the company said in the stock exchange filing.

On April 23, 2024, IIFL Finance had announced that the Reserve Bank of India commenced a special audit that followed the banking regulator’s embargo dated March 4, 2024.

RBI suspended the disbursement of new gold loans by IIFL Finance until the satisfactory completion of the said audit. The audit was part of the apex bank’s supervisory action over concerns related to certain loan disbursement practices.

IIFL Finance shares rallied as much as 6.34% on Wednesday, June 5, to an intraday high of ₹406.85 per piece on the NSE. Shares of IIFL Finance closed 5.5% higher at ₹403.5 per piece on the NSE.

Last month, the company informed that its Board of Directors approved the resignation of Chandran Ratnaswami as the Non-Executive Director of IIFL Finance, effective from May 10, 2024.

Its Board also appointed Gopalakrishnan Soundarajan as an Additional Non-Executive Non-Independent Director of the company, starting May 11.

IIFL Finance’s shares have declined over 32% on a year-to-date (YTD) basis. In a period of the last three months, the financial stock has shed 16%, and is down by more than 14% in the last one year.