CIBIL-- JUST FOR KNOWLEDGE

Why You Need Credit Reports

A credit report provides lenders with an overall snapshot of your credit usage, and even potential employers are checking applicant's credit reports.

Checking your credit report can also help to prevent against fraud and identity theft, which are among the fastest growing crimes today. The best way to prevent fraud is by checking your free credit report for any suspicious activity on your bank accounts, credit cards and loans.

Why Credit Scores are Important

Everyone checks on credit scores these days, and with a higher credit score you can gain access to the best interest rates on school loans, cars, mortgages, credit card offers, insurance payments and so much more.

Credit scores are calculated based on data in your credit reports and can fluctuate depending on recent activity, so it's important that you are monitoring it on a daily basis.

Differences Between Credit Reports and Scores

A credit report is an analysis of when and where you applied for credit, the lenders borrowed from and who you still owe money to. Your credit reports also monitor how much debt you've paid off and whether or not you are current on your monthly payments.

A credit score is a number-grade assigned to you based on the information in your credit report. Companies, banks and lender

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 !!!

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DANGEROUS WORDS IN BUSINESS……….

VIJAY LODHA

MCOM,LLB,MBA(FIN.)LONDON

At least we all recognize it when we hear it.

The really nasty language in business consists of normal words with abnormal meanings. Here are 12 words that should get any alert manager’s bullish*t detector working overtime.

Just

This is used to make a huge request or error seem trivial, as in, “Could you just do this (500-page) document by Monday?” -- a request best made late on a Friday afternoon.

But

Remember, whatever is said before but is b*****ks, as in, “That was a great presentation, but...” or, “I would like to help, but...”.

From

From is much loved by advertisers, as in “Fly to Rome from £10″ -- excluding £100 of taxes and other “optional” extras for a flight leaving at 4 AM and going to an airport about 100kn away from Rome, and only if you book the ticket one year in advance.

Might (and any other conditional verb)

Might is used to achieve two thing. First, it sets up a negotiating position, as in, “I might be able to do that if...” Second, it lays the groundwork for excusing failure later on: “I would have done it, if only...”

Only

Closely related to just, this is an attempt to make a big request or problem seem small. “It was only a small error.... We only dropped one nuclear bomb over London...”.

Important (and urgent)

This is used to puff up any presentation: “This important new product/initiative...”. Important to whom? And why? Maybe it is important to the speaker, but why is it important to me?

Strategic

Important, with bells on. See Strategic Human Capital Division, formerly known as the Personnel Department. It's alternatively used to justify something that has no financial justification at all: “This strategic IT investment (which costs £100 million and has no identifiable payback) is essential to the survival of the business.”

Rightsize, downsize, best shore, offshore, outsource, optimise, redeploy, downshift, re-engineer

How many ways are there to avoid saying straight up: "We are going to lay off staff"?

Thank you

Normally, thank you is good -- except when used by automated voices at call centres saying, “Thank you for calling; we value your call... (and we have so much contempt for our customers that we can't be bothered to answer your call promptly, so we will put you on hold until you give up and try to use our impenetrable and useless online help instead).”

Interesting

Fear this word. When your lawyer uses it, you are doomed. When your doctor uses it, check that your will is up to date. The recession is certainly interesting. A slightly less interesting time would be preferable.

Opportunity

Because the word problem has been banned in business-speak, all problems have become opportunities. This means many opportunities are problems. There is a limit to how many opportunities I can solve. Interesting and strategic opportunities really scare me.

Investment

Investment was first hijacked by the British government to justify wild and uncontrolled public sector spending. Spending is bad, but investment is good, so it simply reclassified all its spending as investment in the health, education, and future of the country. The businesses that followed the government’s lead by going on a spending/investment splurge are now going bust -- unlike the government, they can't print money or raise taxes.