Banks are in wait-and-watch mode and have not been lending to IIFL for gold and its other businesses. The impact of the curbs is likely to be around Rs 500 crore.
Two months after the Reserve Bank of India barred IIFL Finance from sanctioning gold loans, the non-bank financial company seems to be facing a major liquidity crunch.
A Reuters report citing three insiders, including a senior official, said that banks have not been lending to IIFL for gold and other businesses and that the impact of the curbs is likely to be around Rs 500 crore.
“Banks are neither sanctioning new lines (of credit) nor disbursing from already sanctioned limits,” the report quoted an unnamed official at the company as saying.
“Banks are currently in a wait-and-watch mode, and are …
Diti is a copy editor at The Morning Context. She joins us from Deccan Herald where she oversaw the daily news coverage in the digital vertical as a chief sub-editor. She also managed social media and contributed to data stories and film analysis. Before DH, she was with Reuters as an online producer.
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