Mumbai, Feb. 17 -- IIFL Finance Ltd will be conservative in expanding its gold loan book in the next financial year starting 1 April, as founder Nirmal Jain flagged risks to its largest growth driver from evolving regulations after a sharp surge in the prices of the precious metal.

"...this risk is real and gold prices can be volatile. Although fundamental and structural changes now indicate that the gold prices may remain firm, we cannot take the risk," Jain, also the promoter of the firm, said in an interview at the launch of a public bond issue. "While the requirement for credit is there, we are trying to be conservative based on the risk environment that we are in."

Gold loans form the largest share of IIFL Finance's standalone loan...