CIBIL panic or peace for life ?

CIBIL (India's first credit information bureau) is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports. As on February 2009, CIBIL has an information base on over 132 million consumer trades, and 2 million commercial trades which continues to grow at a fast pace. CIBIL shares credit information with its 169 strong member base on the principle of reciprocity. CIBIL’s members include all leading banks, financial institutions, non-banking financial companies, housing finance companies, state financial corporations and credit card companies. CIBIL creates value for financial institutions by providing objective information that helps them manage risk and devise appropriate lending strategies, thus reducing cost and maximizing portfolio profitability. CIBIL benefits both credit grantors and consumers by collecting, analyzing, and delivering information on credit histories of millions of consumers and businesses. With information from CIBIL, credit grantors are empowered to make sound and informed credit decision. Origin of CIBIL The need of credit information system was increasingly felt in order to enable informed credit decisions and aid fact based risk management. It was also imperative to arrest accretion of fresh NPAs in the banking system through an efficient system of credit information on borrowers as a first step in credit risk management. In this context, the requirement of an adequate, comprehensive and reliable information system on the borrowers through an efficient database system was keenly felt by the Reserve Bank of India/ Government as well as credit institutions. A Working Group (Chairman: Shri N.H. Siddiqui) with representatives from select public sector banks, IDBI, ICICI, Indian Banks’ Association and Reserve Bank was constituted by the Reserve Bank in the year 1999, to explore the possibilities of setting up a Credit Information Bureau (CIB). The Working Group had recommended setting up a CIB under the Companies Act, 1956 with equity participation from commercial banks, FIs and NBFCs registered with the Reserve Bank. As per the recommendations made by the Working Group, Credit Information Bureau (India) Ltd., (CIBIL) was set up in January 2001. CIBIL was promoted by the State Bank of India, Housing Development Finance Corporation Limited , Dun & Bradstreet Information Services India Private Limited and TransUnion International Inc. The shareholding pattern was as follows: SBI 40% HDFC 40% Dun & Bradstreet 10% TransUnion 10% TransUnion and Dun & Bradstreet are the technical and equity partners of CIBIL. TransUnion is one of the largest consumer credit bureaus in the world, and is recognized globally for its skills in advanced analytics and decisioning services. Dun & Bradstreet is world’s leading source of commercial information and insights on businesses. In 2004, SBI and HDFC divested a part of their stake in CIBIL to other shareholders comprising of leading banks and financial institutions in the country. •Business: CIBIL provides comprehensive credit information on consumer and commercial borrowers to credit grantors in India. CIBIL’s advanced analytic and risk management tools help credit grantors mitigate risk and ensure superior portfolio performance. CIBIL has two divisions- Consumer Bureau and Commercial Bureau. o Consumer Bureau was launched in 2004 with 4 million records o Commercial Bureau was launched in 2006 with 0.7 million records o CIBIL has grown phenomenally in the last five years, and houses credit histories on over 134 million trades across individuals and businesses Members: CIBIL’s 169 strong member base that includes all leading banks, financial institutions, non-banking financial companies and housing finance companies. Security Standards: CIBIL is ISO 27001:2005 certified- the most recognized security standard in the world. CIBIL is one of the 1000 companies in the world, which have achieved ISO 27001 certification, and one of the first few in India. Headquarter: Mumbai Managing Director: Mr. Arun Thukral Technical Partners: o TransUnion International- a leading global credit bureau with presence in over 30 countries o Dun & Bradstreet- a leading global provider of credit information and insights on businesses CIBIL’s Shareholders The promoters SBI and HDFC divested a part of their stake to other shareholders and the revised shareholding stands as follows: GE Strategic Investments India 2.5% State Bank of India 10% Bank of Baroda 5% TransUnion International Inc. 10% Dun & Bradstreet Information Services India Pvt Ltd.10% Bank of India 5.0% The Hongkong and Shanghai Banking Corporation Ltd 5% Indian Overseas Bank 5% Sundaram Finance 2.5% Housing Development Finance Corporation Ltd. 10% Punjab National Bank 5.0% Union Bank 5.0% Citicorp Finance (India) Ltd 5% ICICI Bank Ltd 10% Central Bank Ltd 5% Standard Chartered Bank 5% Total 100.0% CIBIL aides in improving credit environment in India ? god knows !!!call us 079-65498941vijayrlodha@yahoo.com

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