Shares in India's IIFL Finance jumped about 13% on Friday, after the country's central bank lifted restrictions on the non-banking financial company's gold loan business, removing a key overhang on its financials and stock.

Shares of IIFL Finance surged over 13% after the Reserve Bank of India lifted restrictions on its gold loan business. The restrictions had been in place since March 2024. The RBI's decision allows IIFL Finance to resume its gold loan operations immediately,

Jefferies has upgraded IIFL Finance to 'Buy', saying that an improvement in earnings visibility will support the company's better multiples.

IIFL Finance said on Thursday that India's central bank has lifted the restrictions on the company's gold loan business, in what would be the removal of a key overhang on the lender.

IIFL Finance share price gained 18.03% in the past month and surged 61.28% over six months. However, the stock posted a year-to-date decline of 9.25% and dropped 8.01% over the last year, reflecting mixed returns.

The uptick in IIFL Finance share price came after the Reserve Bank of India (RBI) lifted ban on the company's gold finance business.

RBI has lifted the restrictions on IIFL Finance's gold loan operations, effective immediately. These restrictions were placed in March due to irregularities in their gold loan business. IIFL Finance assures high compliance standards moving forward.