Magma Fincorp has picked up 7 per cent stake in Experian Credit Information Company of India, the proposed Indian arm of global information services company Experian.
The Indian company would be a joint venture between Experian (49 per cent stake) and seven public and private sector banks and non-banking financial institutions in the country such as Axis Bank, Federal Bank, Indian Bank, Punjab National Bank (PNB), Sundaram Finance and Union Bank of India, said a press statement issued by Magma.
While Experian will own 49 per cent in the joint venture, the Indian partners will have the balance 51 per cent. Besides Magma’s 7 per cent, Axis and Union Bank will hold 10 per cent each, PNB 7 per cent, Indian Bank and Federal Bank 5 per cent each, and Sundaram Finance will hold 7 per cent.
TS Narayanasami, who was earlier the chairman of the Indian Bank's Association and Bank of India, has been appointed as the chairman of Experian Credit, the release added.
The Reserve Bank of India (RBI) in April 2009 had granted Experian a provisional license to create a credit information company. The company thereafter secured approval from the Foreign Investment Promotion Board to invest 49 per cent in the Experian CIC, with its Indian joint venture partners holding the remaining equity. The company has recently applied to RBI to secure the final license.
