IIFL

** Indian gold loan financiers up between 2% to 8%

** Federal finance ministry seeks relaxation in the new rules on gold loans proposed by the central bank

** Muthoot Finance MUTT.NS up 7.59%, Manappuram Finance MNFL.NS up 3.1% and IIFL Finance up IIFL.NS up 2.16%

** Central bank, in April, proposed tighter rules for monitoring and disbursement of gold loans, often used by low income borrowers

** Finance Ministry proposes small ticket borrowers below 200,000 rupees ($2344.05) should be excluded from the tighter rules to ensure speedy disbursements

** Final rules by central bank yet to be issued as it seeks comments

** MUTT said in mid-May that the proposed central bank regulations could drive borrowers away from formal lenders to unregulated players

(Reporting by Ananta Agarwal in Bengaluru)

(([email protected]))

May 2 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE LTD - TO CONSIDER ISSUANCE OF NON-CONVERTIBLE SECURITIES IN FY 2025-26

Source text: ID:nBSE8nxQZc

Further company coverage: IIFL.NS

(([email protected];))

** Gold loan providers Muthoot Finance MUTT.NS and IIFL Finance IIFL.NS extend losses from Wednesday, losing 6% and 1.2% respectively; markets shut on Thursday

** Manappuram Finance MNFL.NS inches up 0.2%

** India's central bank proposed stricter rules for gold loan providers on Wednesday, including cap of 75% on loan-to-value ratio, standardised procedure to assess gold purity, rules on collateral management

** Kotak Institutional Equities downgrades MUTT to 'ADD' from 'BUY', moderating growth and margin assumptions

** Says it expects overhang of regulatory changes to temper stock performance

** Macquarie says LTV rules could reduce effective LTV of product given buffers needed for gold price fluctuations, interest payments, while new rules on collateral management could hit potential demand

** Muthoot Finance fell 6.7%, IIFL Finance lose 2.5%, Manappuram Finance declined 1.8% on Wednesday after RBI proposal

** Broader market .NSEI climbs 1.6% on Friday on U.S. tariff reprieve .BO

(Reporting by Chris Thomas in Bengaluru)

(([email protected]))

April 10 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE - CO'S NCD ISSUE OVERSUBSCRIBED 4.75 TIMES, PLANS EARLY CLOSURE

• IIFL FINANCE - CO'S NCD ISSUE TO CLOSE ON APRIL 11 DUE TO OVERSUBCRIPTION

Further company coverage: IIFL.NS

(([email protected];))

Updates

** Shares of Indian gold loan providers trim losses; Muthoot Finance MUTT.NS down 4.8%, IIFL Finance IIFL.NS down 2.5% and Manappuram Finance MNFL.NS dip 1.5%

** Reserve Bank Of India governor on Wednesday clarified that central bank is not looking to tighten gold loan rules

** In the monetary policy address on Wednesday, RBI chief had said that the central bank will issue comprehensive regulations on prudential norms and conduct-related aspects for gold loan providers

** MUTT fell as much as 12% after monetary policy speech, while IIFL lost as much as 8.3%

** Reuters reported last month that RBI plans to ask lenders to follow stricter underwriting processes for gold loans

** MUTT up 2.6% YTD, IIFL down 21% YTD.

** YTD, MNFL up 20%

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]/))

** Indian equities set for inflows of up to $1.4 billion on Friday as FTSE March semi-annual rebalancing to come into effect, per analysts

** ICICI Bank ICBK.NS will be the biggest beneficiary, to see inflows worth $426.9 million from weight increases by FTSE, MSCI and BSE, says IIFL

** Large inflows in ICBK due to merger between bank and ICICI Securities ICCI.NS, whose shares will trade for the last time on Friday

** ICCI shareholders to get 67 ICBK shares per 100 shares of ICCI

** Kotak Mahindra Bank KTKM.NS to see $146 million inflows as FTSE increases weight, says Nuvama

** FTSE adds 360 ONE WAM ONEW.NS, Bajaj Housing Finance BAJO.NS, BSE BSEL.NS and other stocks to FTSE All World Index

** Stocks that might see inflows due to FTSE rebalancing include Zomato ZOMT.NS, ITC Hotels ITCT.NS, Gland Pharma GLAD.NS and BAJO

(Reporting by Vivek Kumar M)

(([email protected];))

MUMBAI, March 19 (Reuters) - India's IIFL Finance IIFL.NS plans to raise 6 billion rupees ($69 million), which includes a greenshoe option of 2 billion rupees, selling bonds maturing in 13 months, three bankers said on Wednesday.

The company has invited bids from bankers and investors later in the day, they said.

The company did not immediately respond to a Reuters request for comment.

Here is the list of deals reported so far on March 19:

*Size includes base plus greenshoe for some issues

($1 = 86.6260 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

(([email protected]))

March 10 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE LTD - TO HOLD MEETING ON MARCH 13 TO APPROVE NCD ISSUANCE TERMS

Source text: ID:nBSE1YwhLd

Further company coverage: IIFL.NS

(([email protected];;))

Updates with final quantum and yield

By Siddhi Nayak and Dharamraj Dhutia

MUMBAI, March 4 (Reuters) - India's IIFL Finance IIFL.NS has accepted bids worth $100 million for the reissue of its 8.75% 2028 dollar-denominated bonds, two sources aware of the matter said on Tuesday.

The non-banking finance company has finalised the deal at a yield of 8.35%. Earlier in the day, it marketed the issue at yields in the 8.30%-8.40% range.

The company received bids worth around $430 million, the sources said, requesting anonymity as they are not authorised to speak to the media.

The company declined to comment on the development.

The notes are rated B+ by S&P and Fitch Ratings in line with the issuer's ratings.

The company initially sold the notes, which had a maturity of three years and six months, in January, raising $325 million.

The proceeds of the issue would be used for lending, the sources said.

"The funds will be used for onward lending, to speed up growth capital since the company is fresh off a central bank ban and wants to expand its book share," one of the sources said.

In September, the Reserve Bank of India lifted the restrictions on the company's gold loan business, originally placed in March on concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.

Separately, IIFL Finance is raising up to 1.50 billion rupees ($17.17 million) via two-year bonds later in the week.

Indian firms raised around $12.05 billion via dollar bonds last year, more than double the $5.70 billion raised in 2023, according to data from financial data aggregator Cbonds.

Investors expect another robust year for such notes.

($1 = 87.3375 Indian rupees)

(Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Janane Venkatraman and Mrigank Dhaniwala)

(([email protected];))

Feb 24 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE’S 9MFY25 RESULTS SHOW ASSET QUALITY, PROFIT CHALLENGES - FITCH RATINGS

• FITCH RATINGS- WEAKENING LOAN QUALITY, NARROWER INTEREST SPREADS MAY CONTINUE TO CONSTRAIN IIFL FINANCE'S NEAR-TERM PERFORMANCE

• FITCH RATINGS: EXPECT IIFL FINANCE'S FULL-YEAR EARNINGS TO BE SIGNIFICANTLY LOWER IN FY25 THAN IN FY24

• FITCH RATINGS: IIFL'S FY25 EARNINGS TO BE LOWER DUE TO REDUCED NIMS, HIGHER CREDIT COSTS

• FITCH RATINGS: TAX INVESTIGATION COULD PRESENT ADDITIONAL TAX LIABILITIES FOR IIFL FINANCE

Source text: [ID:]

Further company coverage: IIFL.NS

(([email protected];))

Adds RBI lifting restrictions on Kotak Mahindra Bank

Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) and banks after they improved their compliance following a series of supervisory restrictions.

High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.

The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.

The following is a list of companies whose restrictions have been removed by the RBI.

KOTAK MAHINDRA BANK

The Reserve Bank of India on Wednesday lifted restrictions on Kotak Mahindra Bank KTKM.NS that had barred the lender from taking on new customers via its online and mobile banking channels, and from issuing new credit cards.

RBI had imposed business restrictions on the lender , asking it to stop adding clients through its online and mobile banking channels and issuing credit cards due to gaps in its IT infrastructure.

ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV

The RBI, last month, removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.

The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.

The same restrictions on Arohan were lifted last week, and from Navi in December.

EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE

The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.

The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.

JM FINANCIAL

A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.

The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.

IIFL FINANCE

In September, the RBI permitted IIFL Finance to resume issuance of gold loans.

The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.

BAJAJ FINANCE

The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.

The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.

(Reporting by Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Varun H K)

(([email protected]; Mobile: +91 9591011727;))

** IIFL Finance IIFL.NS rises 3.3%; wealth management firms 360 One Wam ONEW.NS and 5paisa Capital PAIS.NS gain 4.7% and 3.4%, respectively

** Income tax authorities have concluded searches at their premises, IIFL Finance, 360 One Wam and 5paisa Capital say

** IIFL rated "strong buy", ONEW rated "buy" on avg; PAIS not rated - LSEG

** YTD, ONEW's ~18% loss steepest among three; IIFL and PAIS down ~12% and ~15%, respectively

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

Feb 4 (Reuters) - IIFL Finance Ltd IIFL.NS:

• CONCLUSION OF SEARCH BY INCOME TAX DEPARTMENT

Source text: [ID:]

Further company coverage: IIFL.NS

(([email protected];;))

Jan 29 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE - INCOME TAX DEPARTMENT IS CONDUCTING A SEARCH AT CO'S OFFICES

• IIFL FINANCE -FINANCIAL IMPACT CANNOT BE ASCERTAINED AT THIS POINT

Source text: ID:nBSE9lzsl0

Further company coverage: IIFL.NS

(([email protected];))

** IIFL Finance IIFL.NS down 6.2%, IIFL Capital IIFS.NS down 4.5% and 360 One Wam ONEW.NS down 7.5%

** The drop in the IIFL group companies comes as India's income tax dept conducts searches at IIFL offices in Mumbai, ET Now reports

** IIFL did not immediately respond to Reuters request seeking comments

** IIFL Finance down ~19% in Jan, IIFS down ~ 33% and ONEW down 21%

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

MUMBAI, Jan 17 (Reuters) - India's IIFL Finance IIFL.NS has accepted bids worth $325 million for its planned issuance of U.S. dollar-denominated bonds maturing in three years and six months, the company said on Friday.

The non-banking finance company will offer a semi-annual coupon of 8.75% on the issue, lower than the initial guidance of around 9.00%.

The net proceeds will be used for on-lending and to support the growth of the company's businesses, it said.

Last September, Reuters reported that IIFL Finance could test the dollar bond market to raise funds by March 2025.

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

By Dharamraj Dhutia

MUMBAI, Jan 10 (Reuters) - Two Indian non-banking finance companies (NBFC) could raise about $900 million through the U.S. dollar bond market by the end of next week, merchant bankers aware of the developments said on Friday.

Tata Capital may raise around $500 million through its debut bond offering, while IIFL Finance IIFL.NS is likely to raise $400 million in its first dollar bond sale in four years, the two bankers said.

Tata Capital is looking to raise funds through the sale of bonds maturing in three years and six months, while IIFL Finance will opt for a three-year issue, the bankers said, requesting anonymity as they are not authorised to speak to the media.

Both the companies are in various stages of investor roadshows, and the pricing is expected to be finalised early next week, they added.

IIFL Finance could also take some part of the funding through a dollar loan, one of the bankers said.

The firms did not respond to a Reuters email seeking comment.

Last September, Reuters reported that IIFL Finance could test the dollar bond market to raise funds by March 2025.

In February, Tata Capital was said to be exploring overseas fundraising for the first time in the financial year that starts in April this year, according to a Reuters report.

The developments come after the Export Import Bank of India (EXIM), earlier this week, raised $1 billion through the sale of 10-year dollar bonds, opening the gates for other issuers to follow suit.

The aggressive pricing for EXIM's dollar debt could mean yet another robust year for such papers, investors said.

Indian firms raised around $12.05 billion via dollar bonds last year, more than double the $5.70 billion raised in 2023, according to Cbonds, a financial data aggregator.

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) after they improved their compliance following a series of supervisory restrictions.

High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.

The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.

The following is a list of companies whose restrictions have been removed by the RBI.

ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV

The RBI on Wednesday removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.

The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.

The same restrictions on Arohan were lifted last week, and from Navi in December.

EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE

The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.

The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.

JM FINANCIAL

A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.

The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.

IIFL FINANCE

In September, the RBI permitted IIFL Finance to resume issuance of gold loans.

The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.

BAJAJ FINANCE

The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.

The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)

(([email protected]; Mobile: +91 9591011727;))

Dec 23 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE LTD - TO ISSUE SECURED DEBT INSTRUMENTS

Source text: ID:nNSE4WNNXh

Further company coverage: IIFL.NS

(([email protected];))

Dec 18 (Reuters) - IIFL Finance Ltd IIFL.NS:

• TO CONSIDER CONVERTING MEDIUM TERM NOTE PROGRAMME INTO GLOBAL MEDIUM TERM NOTE PROGRAMME

• TO CONSIDER ISSUE OF SECURED DEBT INSTRUMENTS UNDER GMTN PROGRAMME

Source text: ID:nBSE6GkgXx

Further company coverage: IIFL.NS

(([email protected];))

Dec 17 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE - APPROVED SIZE OF NCD ISSUE AT 3.5 BILLION RUPEES

• IIFL FINANCE - ISSUANCE OF NON-CONVERTIBLE DEBENTURES ON PRIVATE PLACEMENT BASIS

Source text: ID:nBSE4yTbzq

Further company coverage: IIFL.NS

(([email protected];))

MUMBAI, Dec 3 (Reuters) - India's IIFL Finance IIFL.NS has accepted bids worth 6 billion rupees ($70.81 million) for bonds maturing in two years, three bankers said on Tuesday.

It will pay an annual coupon of 9.80% and invited commitment bids for the issue on Monday, they said.

The bonds have a put and call option at the end of one year.

The company did not immediately respond to a Reuters request for comment.

Here is the list of deals reported so far on Dec. 3

*Size includes base plus greenshoe for some issues

($1 = 84.7280 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Abinaya Vijayaraghavan)

(([email protected]))

MUMBAI, Nov 29 (Reuters) - India's IIFL Finance IIFL.NS plans to raise 10 billion rupees ($118.3 million) through the sale of bonds maturing in two years, three bankers said on Friday.

It has invited commitment bids for the issue on Monday, they said.

The bonds have a put and call option at the end of one year.

The company did not immediately respond to a Reuters query seeking comment.

Here is the list of deals reported so far on Nov. 29:

* Size includes base plus greenshoe for some issues

($1 = 84.4990 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Sumana Nandy)

(([email protected]))

Nov 13 (Reuters) - IIFL Finance Ltd IIFL.NS:

• TO ISSUE SECURED DEBT INSTRUMENTS

Source text: ID:nBSEhSpxN

Further company coverage: IIFL.NS

(([email protected];;))

Oct 31 (Reuters) - IIFL Finance Ltd IIFL.NS:

• APPROVED ISSUE OF NON-CONVERTIBLE DEBENTURES OF UP TO 25 BILLION RUPEES

Source text: ID:nBSE9K4rP7

Further company coverage: IIFL.NS

(([email protected];;))

Oct 28 (Reuters) - IIFL Finance Ltd IIFL.NS:

• TO CONSIDER AND APPROVE PUBLIC ISSUE OF NON-CONVERTIBLE DEBENTURES

Source text: ID:nBSE3F3D51

Further company coverage: IIFL.NS

(([email protected];;))

Oct 23 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE LTD SEPT-QUARTER CONSOL NET LOSS AFTER TAX 1.58 BILLION RUPEES

• IIFL FINANCE SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 25.72 BILLION RUPEES

Source text for Eikon: ID:nNSE3dqwmN

Further company coverage: IIFL.NS

(([email protected];))

Updates Factbox published on May 30 with recent RBI actions

By Jaspreet Kalra and Siddhi Nayak

MUMBAI, Oct 18 (Reuters) - The Reserve Bank of India's (RBI) increased scrutiny of banks and other financial firms has resulted in a spate of supervisory restrictions, most recently on four non-banking finance companies due to concerns related to loan pricing practices.

On Thursday, the RBI said Asirvad Micro Finance, Arohan Financial Services, DMI Finance and Navi Finserv are restricted from sanctioning and disbursing loans post Oct. 21.

The pricing policies of these non-banking financial companies (NBFC) and the interest spread they charged over their cost of funds were found to be excessive and not in adherence to regulations, the RBI said.

Since 2020, the RBI has placed business restrictions on many players. The following are some of its key actions:

HDFC BANK

In December 2020, the RBI ordered HDFC Bank to stop all launches of new digital products and issuance of new credit cards following multiple outages on the bank's digital banking channels.

The restrictions lasted until March 2022, which hindered the bank's business growth, contributing to underperformance of its stock compared to its peers.

BANK OF BARODA

In October 2023, the central bank barred state-run Bank of Baroda from adding customers to its mobile app, India's retail inflation accelerated to a nine-month high of 5.49% in September.

Al Jazeera reported that Bank of Baroda had linked mobile numbers of strangers to boost registrations on the application, compromising security.

The restriction was lifted in May after the bank rectified the deficiencies.

BAJAJ FINANCE

In November 2023, the RBI ordered India's largest NBFC, Bajaj Finance, to stop offering loans under two of its lending products.

The restrictions were levied due to non-adherence with the central bank's digital lending guidelines and were reversed in May.

PAYTM PAYMENTS BANK

At the end of January 2024, the RBI asked Paytm Payments Bank to wind down its operations by March 15 due to persistent compliance issues and supervisory concerns.

Reuters reported that the RBI's concerns stemmed largely from violations of rules on customer due diligence, use of funds and technology infrastructure.

IIFL FINANCE

In early March 2024, the RBI barred IIFL Finance, an NBFC, from offering gold loans, citing concerns about the lender's assessment of the gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.

The restrictions were lifted in September.

JM FINANCIAL

Also in March 2024, NBFC JM Financial was barred from giving out loans against shares and debentures due to regulatory violations and governance concerns.

The central bank said it found serious deficiencies in respect of loans sanctioned by the company for IPO financing. The non-bank lender continues to be barred from operating in the segment.

KOTAK MAHINDRA BANK:

In April, the RBI asked private lender Kotak Mahindra Bank to stop adding clients digitally and issuing credit cards citing to gaps in its IT infrastructure. The restrictions are still in effect.

EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE:

In May, the RBI had barred Edelweiss Asset Reconstruction Co Ltd (EARCL) and non-banking firm ECL Finance (ECL) from acquiring financial assets or undertaking structured transactions, saying that the two entities engaged in "evergreening" distressed loans.

The restrictions continue to be in effect.

(Reporting by Jaspreet Kalra and Siddhi Nayak; Editing by Nivedita Bhattacharjee and Sonia Cheema)

(([email protected]; +91-8769636545;))

Oct 10 (Reuters) - IIFL Finance Ltd IIFL.NS:

• IIFL FINANCE LTD - APPROVED TERMS, CONDITIONS OF ISSUANCE OF DEBT INSTRUMENTS

• IIFL FINANCE LTD - SIZE OF ISSUE IN FORM OF NCDS AT 1.5 BILLION RUPEES

Source text for Eikon: ID:nBSE28l5RJ

Further company coverage: IIFL.NS

(([email protected];))

Adds details and context on RBI gold lender action in paragraph 4, 6-10

By Nandan Mandayam and Siddhi Nayak

Oct 1 (Reuters) - Shares of Indian non-bank gold lenders Manappuram Finance MNFL.NS and Muthoot Finance MUTT.NS dropped 2.9% and 3.6% early on Tuesday due to growth concerns, a day after the central bank found "several irregular practices" in the industry.

These irregularities, the Reserve Bank of India said, included the use of third parties to source and appraise gold loans, not valuing gold in the customer's presence and inadequate due diligence.

Those comments are "a sentimental negative for the gold lenders", brokerage Motilal Oswal said in a note.

The central bank gave lenders three months to fix the lapses and report back in order to avoid supervisory action.

"Tightening of these processes may affect growth, (and) asset quality recognition at gold financiers," Jefferies said in a note late on Monday.

Indian banks have consistently clocked double-digit loan growth over the past few months as strong economic growth helped drive retail loans.

The rate of growth in gold loans, however, has outshone the industry average, helped by bullion prices hitting record-highs.

For instance, outstanding loans against gold jewellery grew nearly 41% on-year in August, much higher than overall loan growth of 13.6% and also doubling from the 20.1% gold loan growth rate in August 2023, the RBI's latest data shows.

The RBI, worried about the risk of bad loans, has publicly warned all lenders against "all forms of exuberance".

It has previously taken action against gold loan companies, including barring IIFL Finance IIFL.NS in March, from offering such loans due to "material supervisory concerns".

While those restrictions were lifted last month after a special audit, it wasn't soon enough to prevent IIFL Finance from swinging to a net loss in its April-June quarter.

(Reporting by Nandan Mandayam in Bengaluru and Siddhi Nayak in Mumbai; Editing by Savio D'Souza)

(([email protected]; Mobile: +91 9591011727;))