The State Bank of India (SBI) announced that it acquired a stake in the U. S.-based Equifax Inc’s Indian subsidiary Equifax Credit Information Services (ECIS). In a press release, the SBI said that the investment gave it an interest in the credit bureau ECIS along with a membership in its board.
The lender, however, neither disclose the size of stake nor the amount of money it paid to acquire the stake. It is worth mentioning here that as per the Credit Information Companies (Regulation) Act 2005, an institution cannot purchase a stake of more than 10 per cent in a credit bureau. A spokesperson of ECIS also clarified that Equifax Inc retained its stake in bureau.
The ECIS, which has more than four hundred registered members from various lenders, Non-Banking Financial Institutions and Micro Finance Institutions, is a joint venture (JV) between the U. S.-based Equifax Inc and seven Indian financial institutions.
The State Bank of India owns also 10% of CIBIL, India’s first credit bureau.