ICICIdirect Unveils e-ATM For Instant Mutual Fund Redemptions: Details Inside

On the 29th of October 2021, ICICIdirect, a digital framework for investments, protection, and loan products and also one of India's largest brokers and distributors, revealed the unveiling of a new innovative service, e-ATM for Mutual Funds, in which customers will get an instant payout on their MF redemption requests, as opposed to the traditional 2-4 working days. ICICIdirect customers who use the e-ATM for MF redemptions get paid within 30 minutes of withdrawing their funds.

The brokerage has claimed while launching that "Clients would get redemption of 50-70% of their MF redemption value within 30 minutes, and balance amount as per the payout cycle of the fund, which can be 2-4 working days. Maximum redemption is capped at Rs 10 lakh per customer right now. If client redeems amount after 7:30 pm s/he will get the redemption at 10 am the next working day."

Mr. Kedar Deshpande, Head - Retail Distribution, ICICI Securities, said "After the success of our e-ATM for equities, which provided instant liquidity on sale of shares, our customers had been seeking a similar facility for mutual funds as well. We are happy to introduce ICICIdirect e-ATM for MFs which is available even post market and normal banking hours, and hence will be of great use in meeting urgent and last minute liquidity requirements. For retail investors, access to money is a very important consideration while making their investment decisions. Their ICICIdirect account is almost like an ATM, wherein they can withdraw money within 30 mins of their share and MF sale. This is a very strong value proposition we offer."

Residents who keep their equity, debt, and liquid schemes in Demat units can use the e-ATM for MFs. It can also be used for domestic schemes that have an international presence at affordable charges.

ICICI Securities, a subsidiary of the ICICI Group also announced an upswing in financial and operational performance for the quarter ending September 30, 2021 (Q2FY22) compared to the same period last year (Q2FY21). The company generated consolidated revenue of Rs 857 crore in Q2FY22, up 26 percent from Rs 680 crore in Q2FY21, thanks to excellent growth across all business sectors. On the basis of rising revenue and stronger margins, consolidated profit after tax (PAT) for Q2FY22 was Rs 351 crore, up 26% from Rs 278 crore in Q2FY21.

In Q2FY22, the cost-to-income ratio was 45 percent, but the Return on Equity (annualised) was respectable at 66 percent. The board of directors has announced an interim dividend of Rs 11.25 per share, up from Rs 8 in the second quarter of FY21. In Q2FY22, ICICI Securities' mutual fund revenues increased by 52 percent year on year to Rs 87 crore. The company's market share in SIP flows increased to 4% in Q2FY22 from 3.4 percent in Q2FY21, thanks to a 42 percent YoY increase in SIP number to 0.92 million in September 2021. ICICI Securities' MF AUM has increased by 37% year-on-year and is now at an all-time high.