28 Oct 2013
The Hindu Business Line
Edition: Page 05
State Bank of India has picked up equity stake in Equifax Credit
Information Services (ECIS), a credit information company.
This will give SBI membership on the Board of ECIS, besides an
interest in the credit bureau.
Equifax has been in India for the last three years, through a joint venture.
Mumbai-headquartered ECIS is a joint venture between Equifax Inc and
six leading financial sector players — Bank of Baroda, Bank of India,
Kotak Mahindra Prime, Religare Finvest, Sundaram Finance and Union
Bank of India.
SBI will be the seventh investor in the joint venture from the Indian side.
Both SBI and Equifax India declined to comment on the quantum of
investments involved in the transaction.
“Our new found relationship with SBI will bolster the already strong
reputation and credibility of ECIS in the India marketplace,” said
Shahid Charania, Chairman of ECIS.
“Together, we can tactically decide how to design products as well as
better serve our customers with an inside knowledge and understanding
of how to cater to their needs and operations”. A. Krishna Kumar,
Managing Director and Group Executive (National Banking), SBI, said
the investment being made by SBI in ECIS will be beneficial for both
the parties as well as for lenders — and ultimately consumers — in India.
The Centre had earlier this year put investments in credit
information companies under the automatic route. The Government had
also hiked the foreign direct investment limit in the credit
information industry to 74 per cent from 49 per cent earlier.