CIBIL’s reach is far and wide
CIBIL (Credit Information Bureau (India) Ltd) has been around for now since 15 years. It has most certainly been a momentous performance on its part in revving up the credit and investment environment of the Indian economy.
Undoubtedly, CIBIL has brought about the level of transformation that the credit industry in the country needed so dearly and in reasonably good time too. It is now time to take a closer look at the level of penetration that CIBIL single-handedly has accomplished so far.
CIBIL is the first Indian credit information bureau licensed by the central bank RBI and commenced operations in the year 2001. To begin with, it had only 13 registered members from the financial sector and about four million credit records.
Today, within this interim period, CIBIL that was only a sapling then has blossomed into this gigantic banyan tree with its swing like branches spreading far and wide in a seemingly limitless arch. We are talking about records of millions of creditors and debtors here. In fact, by and large, the entire banking, insurance and the credit card sectors are its life members. They benefit immensely as they keep receiving the highly reliable CIBIL Credit Information Reports and the CIBIL Credit Scores created regularly by CIBIL.
Understandably over this period, CIBIL has evolved greatly and today it has within its ambit credit solution products that are best not only in the country but quality wise on par with international standards.
- Today, CIBIL has two divisions serving distinctive segments of the economy. It is heartening to note that both the Consumer Bureau and the Commercial Bureau have been witnessing high growth and momentum.
- The Consumer Bureau was launched in the year 2004 with just four million records. The Commercial Bureau began just two years later in 2006 with only 0.7 million records.
- According to the data made public by CIBIL in September 2013, the Consumer Bureau has increased its database to well over 290 million records. And the Commercial Bureau also managed an equally striking figure of well over 14 million records.
- CIBIL is a treasure trove of credit information with an impressive membership of over 930 that comprises of banks, financial institutions, housing finance companies as well as non-banking financial companies (NBFCs).
- CIBIL has thoroughly researched and made ready for use completed credit records on well over 300 trades cutting across a spectrum of industries.
CIBIL is today the largest credit information agency and this is substantiated by the fact that investors at all levels rely on its reports and scores to arrive at informed investment related decisions. A special mention may be made here of private equity funds and strategic investors who have also expressed their faith in CIBIL.
With CIBIL, breaking records has become the norm
Number crunching has taken an entirely different meaning when one talks about CIBIL. Look at the statistics galore —
- Since its inception, CIBIL has grown to emerge as the market leader in the credit sector. According to the data published by the Registrar of Companies (RoC), the credit bureau enjoys over 90 per cent of the market share in the credit information business.
- Again, RoC records reveal that CIBIL’s profit after tax in March 2014 was a very good Rs 59.5 Crores. This was actually a remarkable rise of 34 per cent. As the profit figure for the previous financial year was Rs 44.36 Crores only.
- Its profits from operations as on 31 March, 2014 rose to Rs 180 Crores. This was yet again a healthy jump of up to 27 per cent from the previous years’ performance. As then the corresponding figure was only Rs 142 crore.
- All this phenomenal rise has expectedly not gone unnoticed by the RBI. A report published by a constituted panel of the central bank had on March 2014 recommended that not only banks, insurance companies and other financial institutions keep CIBIL credit information as the standard, but also the other three credit information bureaus licensed by it viz.Equifax India, Experian India, and Crif High Mark.
- With this kind of stature, it is but natural that some of the big names have equity share in CIBIL. March 2014 saw Trans Union International purchase another 27.4 per cent share of CIBIL. With this, Trans Union International is the leading share holder in CIBIL’s equity with a total 55 per cent share. The Aditya Birla Private Equity Fund followed this with its own purchase of four per cent share of CIBIL with an investment of around 55 Crore rupees.
- As recently as May 12, 2015 India Alternatives Private Equity and India Infoline Finance bought four per cent share of CIBIL from the State Bank of India. With this deal, the valuation of CIBIL has touched a mind-blowing Rs 1550 crore!