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SBI, HDFC to acquire 80% stake in CIBIL

Government-owned State Bank of India said that it signed an agreement on Tuesday to pick up a 40 per cent stake in the country's first credit data dissemination body.

SBI, which is India's largest bank, said housing mortgage lender Housing Development Corp Ltd will also subscribe to 40 per cent of the equity in Credit Information Bureau India Ltd (CIBIL).

Financial information publisher Dun & Bradstreet Information Services India and American credit services firm Trans Union International Inc will each hold 10 percent in the company, SBI said in a statement.

It said CIBIL will collect credit-related data, both consumer and commercial, and sell the reports to banks, financial institutions and businesses that agree to contribute their data to CIBIL regularly.

"Data sharing will therefore be within a closed group of data providers. It is expected that all credit grantors will eventually be part of this closed group," SBI said.

It said CIBIL may start full-scale commercial operations in the second half of this year after the legal requirements are in place.

SBI on Tuesday reported a 45 per cent drop in net profit in October-December. Ahead of the results, its shares closed up 0.61 per cent at Rs 230, while the Sensex ended 3.25 per cent higher.

HDFC's shares ended Tuesday down 3.66 per cent at Rs 559.70.

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