Crisil plans credit information firm

Crisil has reached a preliminary understanding with US-based Equifax and Tata Capital to set up a credit information company (CIC).

According to a release issued by Crisil to the BSE today, the company has applied to the Reserve Bank of India (RBI) for permission to start and operate a CIC. "The establishment and commencement of operations of the CIC will depend on regulatory approval from RBI," the release added.

"The positioning of the CIC will be unique," says Roopa Kudva, managing director and chief executive officer, Crisil. "With our capable and respected partners, Equifax and Tata Capital, we look forward to providing the Indian market with cutting-edge credit information services and analytics."

"As a rapidly-growing segment, the retail credit space provides an attractive opportunity for Crisil to broaden and diversify its range of services," Kudva added.

The retail finance market in India is expected to grow at about 20% annually over the next five years, buoyed by favourable demographics, substantial increases in disposable income, and changing lifestyles. Lenders will require reliable, accurate information to be able to lend with confidence, the release added.

Crisil is a leading ratings, research, risk and policy advisory company, Equifax is a leader in global credit information solutions, and Tata Capital is a wholly-owned subsidiary of Tata Sons, the holding company of the Tata Group.