On October 29, 2021, ICICIdirect, a digital framework for investment, protection and lending products and also one of India’s largest brokers and distributors, revealed the unveiling of an innovative new service, e-ATM for Mutual Funds, in which clients get instant payment on their MF redemption requests, as opposed to the traditional 2-4 business days. ICICIdirect customers who use e-ATM for MF redemptions are paid within 30 minutes of withdrawing their funds.
The brokerage claimed at the launch that “clients will get the reimbursement of 50-70% of their MF redemption value within 30 minutes and the balance amount depending on the fund’s payment cycle, which can be anywhere from 2 to 4 working days Maximum reimbursement is capped at Rs 10 lakh per customer at this time. If the customer redeems the amount after 7:30 pm, they will get the refund at 10 am the next working day.
Mr. Kedar Deshpande, Head of Retail Distribution, ICICI Securities, said: “After the success of our ATM for equities, which provided instant liquidity when selling equities, our clients were also looking for a similar facility to mutual funds. are pleased to present ICICIdirect e-ATM for MFs which is available even after market and normal banking hours, and will therefore be of great help in meeting urgent and last minute liquidity needs. For retail investors, access to money is a very important consideration while making their investment decisions. Their ICICIdirect account is almost like an ATM, where they can withdraw money within 30 minutes of selling their shares and MF. It is a very strong value proposition that we offer. “
Residents who keep their equity, debts and cash in Demat units can use e-ATM for MFs. It can also be used for national plans that have an international presence at affordable rates.
ICICI Securities, a subsidiary of the ICICI Group, also announced an improvement in financial and operational performance for the quarter ending September 30, 2021 (T2FY22) compared to the same period last year (T2FY21). The company generated consolidated revenue of Rs 857 crore at T2FY22, up 26% from Rs 680 crore at T2FY21, thanks to excellent growth across all business lines. Based on rising revenues and stronger margins, consolidated profit after tax (PAT) for T2FY22 was Rs 351 crore, up 26% from Rs 278 crore at T2FY21.
In the second quarter of FY22, the cost-to-income ratio was 45%, but the return on equity (annualized) was respectable at 66%. The board of directors announced an interim dividend of 11.25 rupees per share, compared to 8 rupees in the second quarter of FY21. In the second quarter of FY22, mutual fund income from ICICI Securities rose 52% year-on-year to Rs 87 crore. The company’s market share in SIP flows increased to 4% in T2FY22, from 3.4% in T2FY21, thanks to a 42% year-over-year increase in the SIP number to 0.92 million in September 2021. ICICI Securities’ MF assets under management increased 37% year-on-year. year and is now at an all time high.
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Article first published: Saturday, October 30, 2021, 11:38 a.m. [IST]