It is very difficult to predict the timelines of “unbanning”. However, there have been times when companies have achieved it within a year. HDFC Bank’s CC ban lasted for around 8 months [HERE]. Mastercard’s ban lasted approx a year [HERE].
In the case of IIFL, management is claiming that they have rectified the issues and going to request a special audit from RBI. If I am not mistaken, the special audits could take 6 months (if successful) but for safer side, I will assume a year.
What we should also consider is the broader implications: the customers, future growth, and possibilities of valuation de-rating under the categorization of poor CG.
Disclaimer: I may or not be invested in any of the names mentioned here. This is not a BUY/SELL recommendation. These are my views and I often go wrong or change my views without being able to inform anyone.
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