IIFL Finance Limited

The company was incorporated at Mumbai on October 18, 1995, as a private limited company with the name Probity Research & Services Private Limited. The status of the company was changed to a public limited company and name was changed to ‘Probity Research & Services Limited’. The name of the Company was subsequently changed to ‘IIFL Holdings Limited’ on February 18, 2014. Thereafter, the name of the Company was changed to ‘IIFL Finance Limited’ on May 24, 2019.
IIFL holdings had three business verticals – Lending (IIFL Finance), Brokerage (IIFL Securities) and Wealth Management (IIFL Wealth Management). In order to grow them independently, the group demerged all the entities and listed them separately in 2019.
The group is promoted by Mr. Nirmal Jain and Mr. Rajamani Venkataraman, As of 31st March 2023, promoters group hold 24.90% stake in IIFL Finance.

IIFL Finance Limited has a wide geographical presence across India. It operates through a network of 4,267 branches spread across Tier I/II and  Tier III cities across the country ensuring accessibility to a wide customer base.

Over the past several years, the group has diversified its products and expanded its presence into segments that are of greater relevance to the evolving business environment and customer demand trends. In Fiscal 2021, the group completed the sale of its commercial vehicles’ financing business as a going concern to focus on scaling up existing business segments of Affordable Home Loans, Gold Loans, Business Loans and Microfinance. Group’s core product offering is detailed below:

• Home Loan: includes financing for purchase of flats, construction of houses, extension and for improvement in the flats/homes.
• Business Loan: includes loans against property and small and medium enterprise financing. Loan against property (LAP) is availed for working capital requirements, business use or acquisition of new commercial property. In the medium and small enterprise financing segment (MSME),the company provides working capital finance to small business owners. The company offers small ticket loans, thereby being able to meet the needs of small-scale businesses including standalone shops etc.
• Gold Loan: includes financing against security of mainly used gold ornaments. The company offers loans against gold to small businessmen, vendors, traders, farmers, and salaried people for their personal needs as well as for working capital needs.
• Microfinance Loan: includes credit support mainly to women, who have either limited or no access to formal banking channels. The company provides financial services to the economically weaker sections of society with an aim to bring microfinance services to the doorstep of the rural and semi-urban BoP (Bottom of Pyramid) families in India.

Rating for the past 3 years:

(In ₹Crore)

1. Company is the third largest gold loan NBFC in India after Muthoot Finance and Manappuram Finance.
2. Diversified portfolio at group level (Gold, Housing Finance, Microfinance) and at the standalone level majority of the portfolio is backed by gold which is highly liquid.
3. Stable portfolio quality – Gross NPA stood at 1.29% and Net NPA at 0.64%.

1. High group level leverage – Group level leverage is at ~5.76x (including off-balance sheet assets and on adjusted net worth).
2. Real estate exposure –  In the housing finance business, the company has significant exposure to the real estate sector and any negative trends affecting this sector could adversely affect its business and operations.