Mumbai, Feb 5 (UNI) Leading Indian ratings, research and policy advisory company, CRISIL today announced that it has reached a preliminary understanding with US-based Equifax and Tata Capital to set up a Credit Information Company (CIC).
CRISIL in a release here said that it had applied to the Reserve Bank of India for permission to start and operate a CIC, and the commencement of operations would depend on regulatory approval from the Apex Bank.
CIC aims to capitalise on CRISIL's understanding of the Indian markets, Equifax's sophisticated tools and analytics, and the Tata Group's credibility and capability.
CRISIL Managing Director Roopa Kudva stated in the release that CIC will have a unique position in the market and provide cutting edge credit information services and analytics using the strengths of both Equifax and Tata Capital.
CRISIL has rated instruments issued by more than 4,600 large entities, and has evaluated more than 1,500 small and medium enterprises. As part of its structured finance rating process, it has analysed the behaviour of more than a million retail loans.
CRISIL's credit risk assessment models have been implemented for various categories of borrowers (including retail), in more than 20 banks in India, and some outside.
''CRISIL has a 20-year old tradition of helping India's credit markets function better. Strategically, our entry into the credit information business will help us to expand our footprint into the retail credit segment,'' Ms Kudva added.
She said that as a rapidly-growing segment, the retail credit space provided an attractive opportunity for CRISIL to broaden and diversify its range of services. The retail finance market in India is expected to grow at about 20 per cent annually over the next five years, buoyed by favourable demographics, substantial increases in disposable income, and changing lifestyles, she added.
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