Business

ICICI Sec diversifies into retail loan distribution

To sell ICICI Bank products online

ICICI Securities has diversified its business model to enter the retail loan distribution business in the form of home, auto and personal loans and loans against property.

The financial services entity is eyeing commission income by selling products of ICICI Bank through its online — ICICI Direct — and offline channels. “This service is inclusive of products such as personal loans, home loans, loans against property, auto loans, and credit cards offered by ICICI Bank. I-Sec will earn a distribution commission for selling these products,” stated a company statement.

Shares of ICICI Securities, which is a subsidiary of ICICI Bank, have lost nearly 60% since listing in April last year even as the benchmark Sensex had gained over 17% in the same period.

On Tuesday, shares of ICICI Securities closed almost flat at ₹216.05. Incidentally, the issue price of the company was fixed at the upper end of the price band at ₹520 after the public issue remained under subscribed at 0.78 times.

While the institutional portion was oversubscribed, the segments reserved for retail and high net worth individuals were undersubscribed.

“This is a new revenue stream for us and we are confident that given the robustness of our platform and strength of our distribution, we will provide a lot of value to both our customers as well as the principal,” said the statement quoting Vijay Chandok, MD & CEO, ICICI Securities.

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Printable version | Feb 24, 2020 5:33:44 AM | https://www.thehindu.com/business/icici-sec-diversifies-into-retail-loan-distribution/article28335818.ece

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