ICRA

IIFL Group co-founder Nirmal Jain said a proposal to evaluate listing the company's mortgage and microfinance arms may soon be presented to the board. The listings aim to mitigate risks by allowing the IIFL Finance Ltd's units to independently access credit and capital markets, unfettered by holding company constraints. Guiding for a broad timeline of 18 months, managing director Nirmal Jain said that when IIFL Finance was faced with a regulatory ban by the Reserve Bank of India (RBI), banks froze the credit lines to gold loans, housing finance and microfinance businesses. “That’s another thing we understood — that is to de risk the businesses,” Jain said in an interview explaining the rationale for the possible listing of the housing finance and MFI businesses. On March 4, the RBI barred IIFL Finance from taking on new customers in the gold loan business. From a loan book of Rs 23,000 crore, its outstanding gold loans fell to Rs 12,162 crore as of August 5, 2024. The central bank lifted the ban on September 20. During the period, the lender faced issues in drawing down sanctioned loan facilities and couldn’t access bank funding.

IIFL Finance board to evaluate listing of mortgage, microfinance units

Housing finance firms IIFL, Home Finance Ltd announced a strategic partnership with Common Services Centre, a dedicated network of Village Level Entrepreneurs under the Ministry of Electronics and Information Technology aiming to utilize CSC's digital platform, spanning 6 lakh CSC centers across the country to facilitate home finance queries and lead generation in different states of India. The partnership leverages CSC's extensive network, which hosts a variety of services such as credit enablement, EMI collection and banking services in remote locations. IIFL Home Finance foresees tremendous potential in this collaboration to extend its reach beyond ties 1 and 2 market, addressing the needs of customers in Tier3,4, and 5 locations who are underserved in terms  of loan disbursement and home ownership.

IIFL Home Finance partners with Common Services Centre to expand  rural reach

AIIB has extended a USD 100 million facility to IIFL Home Finance to enhance affordable housing access for economically weaker and low-income groups in India. This supports India’s climate goals and government schemes like Pradhan Mantri Awas Yojana – Urban 2.0. The funding aids both homebuyers through loans and developers via project financing, promoting green building practices to boost social and environmental sustainability.

AIIB Commits USD100 Million to IIFL Home Finance to Enhance Access to Affordable Housing Finance in India

IIFL Group’s profit plummeted to Rs 578 crore in FY2025 following a Rs 587 crore exceptional loss from AIF provisions. While 9M-FY2026 shows a recovery with RoA rising to 2.1%, asset quality remains pressured; reported GNPA is 1.6%, but surges to 5.0% when including recent write-offs and ARC sales. Despite improved margins, elevated credit costs (1.8%) and Rs 3,070 crore in unredeemed Security Receipts make stabilizing delinquencies the group’s most critical task.


As of December 31, 2025, IIFL Finance holds Rs 60,640 crore in borrowings, heavily weighted toward Banks/FIs (59%) versus NCDs and CPs (41%). While the 9.7% cost of funds is higher than peers, recent lower-rate borrowings signal an upcoming decline. The group's key challenge is diversifying away from bank reliance to further optimize long-term funding costs.


The issuer has made timely interest payments.

Girish Kousgi, MD and CEO

Backed by investors like Fairfax, IIFL Finance bolstered its capital via a ₹1,272 crore rights issue in May 2024. By December 2025, consolidated net worth reached ₹15,152 crore with a healthy 5.5x gearing and 32x NPA coverage. Individually, IIFL Finance (Standalone), IIFL Home, and IIFL Samasta maintained strong capitalization with CARs of 18.9%, 47.7%, and 30.0% respectively, positioning the group for stable medium-term growth.


Consolidated AUM hit ₹98,336 crore (+26% YTD) by December 2025, led by a ₹43,432 crore gold loan recovery. The 98% retail portfolio—spanning gold (44%), home (32%), LAP (9%), microfinance (9%), and unsecured (4%)—is being optimized by existing unsecured digital loans and micro-LAP. This network of 4,761 branches includes IIFL Finance (₹49,027 Cr), IIFL Home (₹39,628 Cr), and IIFL Samasta (₹9,681 Cr).



Security Name: 8.85% IIFL Home Finance Limited 27 Jul 2027

ISIN: INE477L08089

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