Equifax to create credit info company in India
Equifax is working to create a credit information company in one of the world's most populous nations.
The credit information giant said has reached a "preliminary understanding" with two companies -- CRISIL Limited and Tata Capital Limited -- to develop plans to create a credit information company in India.
CRISIL is India's leading ratings, research, risk and policy advisory company, with revenues of $62.9 million (U.S.) in 2006. Tata Capital Limited is a wholly owned subsidiary of Tata Sons Limited, the apex holding company of the Tata Group. The Tata Group is one of India's largest business conglomerates with revenue in 2006-07 of more than $ 29 billion (U.S.)
Equifax has submitted an application to the Reserve Bank of India to operate a credit information company in response to the bank's request for applications in 2007. The establishment and associated timing of the credit information company are contingent on regulatory approval from RBI and other regulatory authorities in India.
"The combination of Equifax's international experience, products, and services in credit information, CRISIL's deep understanding of and research in the Indian financial services industry, and Tata's vast resources and capabilities, will position us to provide the very best credit information services in India," said Richard F. Smith, Equifax Chairman and CEO. "Developing a world-class credit information system is timely as India is experiencing a credit boom, with bank lending to firms and households increasing by 30 percent over the past year and sustained economic growth of 6 to 9 percent."
According to a recent study by CRISIL Research, a division of CRISIL Limited, the retail Indian finance market is expected to grow at more than 20 percent annually over the next five years, buoyed by favorable demographics, substantial increases in disposable income, and changing lifestyles.
Equifax today operates in North America, Latin America and Europe.
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