Global credit and information services company TransUnion has picked up an additional 7.5 per cent stake in Cibil to take its holding in the country's largest credit information company to a majority 55 per cent.
"We have received regulatory approval to achieve majority ownership in Cibil," the US-based TransUnion said in a statement, adding, its stake in the city-based company has now gone up to 55 per cent.
Standard Chartered Bank and the non-banking financial player Sundaram Finance are believed to have exited their entire 5 percent and 2.5 percent stake respectively, in the city-based company. However, details of the transactions like the amount paid for the stake were not immediately revealed.
TransUnion has been working with Cibil since 2001 and has been raising its stake in the company for some time. With the government relaxing foreign direct investment limit in creidt information companies to 74 percent last year, the decks were cleared for raising the stake.
Under the new shareholding pattern, the rest of the lenders will continue to hold their respective stakes in Cibil. This will be led by State Bank of India and ICICI Bank with 10 percent each, and Bank of Baroda, Bank of India, Union Bank of India, HSBC and Indian Overseas Bank hold 5 percent each.
"Shift in majority ownership represents culmination of 13 years of close collaboration and partnership. Following the integration, the domestic credit information industry will benefit by way of access to TransUnion's diverse solution suite," Cibil Managing Director Arun Thukral said in the statement.
It can be noted that last year, the government had increased FDI in credit information firms,under which a 49 per cent holding is automatically allowed and up to 74 per cent with approval from the Foreign Investment Promotion Board.
Cibil dominates the credit information industry in the country with products for retail loan seekers like the individual credit score, to the lenders. The other rival operators are Experian and Equifax.
