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TransUnion picks up majority stake in Cibil

LiveMint logoLiveMint 22-05-2014 Saurabh Kumar

New Delhi: TransUnion Corp., which provides credit information to banks and consumers, said on Thursday that it had secured a majority stake in Credit Information Bureau (India) Ltd (Cibil), raising its holding to 55% from 47.5%.

US-based TransUnion has been increasing its stake in Cibil gradually since the Reserve Bank of India allowed 74% foreign direct investment (FDI) in credit information companies towards the end of 2013.

JM Financial Institutional Securities Ltd was the financial adviser and P&A Law Offices was the legal counsel to TransUnion on the transaction.

TransUnion has been Cibil’s technology, analytics and decision-making partner as well as a shareholder since 2001 when the latter started operations in India.

Cibil’s managing director Arun Thukral said the integration will benefit the Indian credit information industry by way of providing access to TransUnion’s diverse solution suite including business, product, sales and operations strategy.

“We believe that the increase in FDI in credit information space is a progressive move that will catalyse growth of the credit information industry and will refuel technological advancements and global expertise for the existing operators,” he added.

By using credit scores for consumers provided by companies like Cibil, financial institutions have been able to disburse faster and less risky loans. This has helped these institutions to make their loan portfolios healthier.

Cibil, the largest of the four credit bureaus in India, has around 330 million credit records of over 180 million individuals in India.

The three other credit bureaus in India are Equifax Credit Information Services Pvt. Ltd, Experian Credit Information Co. of India Pvt. Ltd and High Mark Credit Information Services Pvt. Ltd.

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