The State Bank of India (SBI) on Sunday said that it made an investment in Equifax Credit Information Services (ECIS), an India-based credit bureau and an arm of the U.S.-based Equifax Inc.
However, it did not disclose the percentage or size of the deal.
As per the norms laid by the Credit Information Companies (Regulation) Act, 2005, no institution can buy more than 10 per cent stake in a credit bureau.
“Equifax Inc, however, retains its stake in ECIS,” a spokesperson of the credit bureau told The Hindu .
The ECIS has over 400 registered members from various banks, Non-Banking Financial Institutions and Micro Finance Institutions. It is a joint venture between Equifax Inc of the U.S. and seven domestic financial institutions. Besides the SBI, the existing partners are the Bank of Baroda, the Union Bank of India, the Bank of India, Kotak Mahindra Prime, Religare Finvest, and Sundaram Finance.
“This endeavour gives SBI interest in the Bureau as well as a membership in its Board,” a joint press release issued by the SBI and the ECIS said.
“The investment we are making will be beneficial for all lenders and ultimately consumers in India,” said A. Krishna Kumar, Managing Director and Group Executive (National Banking), SBI.
