State Bank of India has picked up equity stake in Equifax Credit Information Services (ECIS), a credit information company.
This will give SBI membership on the Board of ECIS, besides an interest in the credit bureau.
Equifax has been in India for the last three years, through a joint venture.
Mumbai-headquartered ECIS is a joint venture between Equifax Inc and six leading financial sector players — Bank of Baroda, Bank of India, Kotak Mahindra Prime, Religare Finvest, Sundaram Finance and Union Bank of India.
SBI will be the seventh investor in the joint venture from the Indian side. Both SBI and Equifax India declined to comment on the quantum of investments involved in the transaction.
“Our new found relationship with SBI will bolster the already strong reputation and credibility of ECIS in the India marketplace,” said Shahid Charania, Chairman of ECIS.
“Together, we can tactically decide how to design products as well as better serve our customers with an inside knowledge and understanding of how to cater to their needs and operations”.
A. Krishna Kumar, Managing Director and Group Executive (National Banking), SBI, said the investment being made by SBI in ECIS will be beneficial for both the parties as well as for lenders — and ultimately consumers — in India.
The Centre had earlier this year put investments in credit information companies under the automatic route.
The Government had also hiked the foreign direct investment limit in the credit information industry to 74 per cent from 49 per cent earlier.