IIFL Finance breaks key support post RBI ban; chart hints more pain ahead

With Tuesday's 20 per cent fall, IIFL Finance was seen trading below its 20-Month Average for the first time after a gap of 3 years. Chart suggests bias to remain weak below this particular level.

IIFL Finance was locked at the 20 per cent lower circuit at Rs 479 in Tuesday's intra-day deals after the Reserve Bank of India (RBI) barred the NBFC from sanctioning or disbursing fresh gold loans with immediate effect, citing 'material supervisory concerns'.

The non-banking financial company (NBFC), however, was allowed to service its gold loan portfolio through usual collection and recovery processes.

IIFL Finance has a gold loan portfolio of Rs 24,692 crore, which is 32 per cent of its loans, valued at Rs 77,444 crore at the end of the third quarter of FY24.

Following an inspection of the company's financial position