Experian is the second credit bureau in the country to confirm conditions after Credit Information Bureau of India.
Seven financial institutions, including Punjab National Bank (PNB), Union Bank of India and Axis Bank have picked up stake in the newly-formed credit bureau, Experian Credit Information Company of India.
Experian is the second credit bureau to confirm conditions after Credit Information Bureau (India) (CIBIL), which is the only functional credit bureau at present.
Experian said it would now apply to the Reserve Bank of India (RBI) for a final license and commence operations within six months of receiving it.
While Axis bank and Union Bank of India have both picked up 10 per cent each, Punjab National Bank, Magna Fincorp and Sundaram Finance have picked up 7 per cent each. The other investors are Indian Bank and Federal Bank, who have 5 per cent each, while the remaining 49 per cent is held by the parent, Experian Credit Information Services. The total paid-up capital of the company is Rs 60 crore.
Former Bank of India Chairman and Managing Director TS Narayanasami has been appointed chairman of the Experian Credit Information Company.
In April this year, RBI had given in-principle approvals to four credit bureaus, including Cibil, Equifax Credit Information Services, Experian Credit Information Company of India and Highmark Credit Information Services.
Punjab National Bank and Union Bank of India also hold 5 per cent each in CIBIL, while Sundaram Finance has a 2.5 per cent stake.
The credit information companies had up to July 15, 2009 to confirm conditions but were unable to adhere to the deadline due to the lack of clarity on the ownership status of certain potential investors such as ICICI Bank and HDFC Bank.
According to the foreign direct investment (FDI) norms issued by commerce and industry ministries in February 2009, ICICI Bank and HDFC Bank are categorised as foreign-owned.
FDI in credit bureaus is capped at 49 per cent.
