IIFL Finance: A Positive Outlook in Gold Financing

IIFL Finance's outlook has been revised to 'Positive' by Standard & Poor's due to the company's strengthening position in the gold lending market. This comes after a central bank embargo was lifted. S&P predicts reduced credit costs and strong capitalisation, despite a slight decline in the RAC ratio.

Leading credit rating agency Standard & Poor's (S&P) has upgraded IIFL Finance's outlook from 'Stable' to 'Positive', citing a growing market share in the gold lending sector.

This positive revision follows a period of recovery for IIFL Finance, after a central bank embargo on its gold lending operations was lifted last year. S&P expects the company to retain solid capitalisation throughout the upcoming year, despite a potential decrease in risk-adjusted capital ratio.

S&P forecasts a peak in the company's credit costs within the current fiscal year ending March 31, 2026, but anticipates a subsequent decline post-FY26. The agency believes that IIFL will maintain its funding access, demonstrating resilience amid market fluctuations.

(With inputs from agencies.)