Central Bank of India up 3pc, sells entire stake in CIBIL

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Central Bank of India is on buyers’ radar on Friday, rising nearly 3 per cent after the bank offloaded entire stake in Credit Information Bureau of India.

“After due approval, Central Bank of India has sold its entire stake in Credit Information Bureau of India (CIBIL) to Transunion International Inc (FII),” the company said in its filing.

The bank was holding 5 per cent stake in the company. CIBIL, founded in August 2000, is a credit information company. It collects and maintains records of an individual‘s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, on a monthly basis.
This information is then used to create credit information reports (CIR) and credit scores which are provided to lenders in order to help evaluate and approve loan applications.

Meanwhile, Punjab National Bank also sold its entire shareholding (5 per cent stake) in CIBIL to TransUnion International Inc (FII). The stake of TransUnion International Inc increased to 37.5 per cent from 27.5 per cent after selling stake by both state-owned banks. HDFC , Indian Overseas Bank , Standard Chartered Bank , Hong Kong and Shanghai Banking Corporation, Citicorp Finance India, Union Bank of India , Bank of India and Bank of Baroda hold 5 per cent stake each in CIBIL ( as per CIBIL website).

India’s largest lenders State Bank of India and ICICI Bank have 10 per cent shareholding each in the company while Sundaram Finance holds 2.5 per cent.