After RBI, What’s Next? BP Kanungo May Step Into IIFL’s Inner Circle

BP Kanungo, a former deputy governor of the Reserve Bank of India, is expected to join the board of IIFL Finance as an independent director. The timing is notable. IIFL is still working to regain trust after the RBI flagged lapses in its gold loan business last year.

 

If appointed, Kanungo would take over from AK Purwar, the former SBI chairman, who has served on IIFL’s board for over 15 years.

The company ran into trouble in early 2024 when the RBI imposed a temporary ban on disbursing new gold loans, citing compliance concerns. That ban was lifted by September, after IIFL took corrective steps, including appointing KPMG to carry out an audit of its internal processes.

 

Kanungo’s background makes him a strong pick. He served as RBI deputy governor from 2017 to 2021 and currently sits on the boards of BharatPe and Shriram Life. He’s known for his work on payment systems and debt management—areas that could help IIFL tighten oversight as it moves forward.

 

The appointment isn’t official yet, but sources say it’s close. After a tough year—gold loan assets rebounded but profit dropped sharply—IIFL seems to be betting on experience and credibility to guide its next phase.

 

Sources: Economic Times, Worldnews.com, BankersAdda