Dun & Bradstreet to take 20% stake in Credit Information Bureau
Dun & Bradstreet plans on taking a 20% stake in the proposed Credit Information Bureau (CIB) being set up by State Bank of India, Housing Development Finance Corporation and US based Transunion.
The bureau is expected to start operations within nine months. Dun & Bradstreet together with Transunion will provide technology and management expertise to the bureau. This bureau is being set up in line with the finance minister's announcement in the recent budget, to set up a credit information bureau (CIB) to increase transparency in the banking and finance sectors.
Dun & Bradstreet already has a strong presence in India and has tied up with Export Credit Guarantee Corporation to distribute their products and develop a database of exporters. It has also tied up with the Bombay Stock Exchange and developed a co-branded database product covering the quarterly results of 20,000 companies.
The bureau will collect consumer and commercial credit data and create, market, package, sell and distribute reports to banks, financial institutions and other businesses who agree to contribute data to the bureau on a regular basis. As SBI accounts for 22% of the banking sector loans and advances it has a very strong corporate database. HDFC on the other hand has a very large retail database as it is the largest housing finance company in India.
This bureau would be beneficial to banks, finance companies, consumers as it would result in speedier transactions as information needed would be readily available. It will also help in improving the asset quality of banks and finance companies by bringing down non performing assets as information on corporates and retail would be easily available.
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