_________________________________________ CREDIT INFORMATION BUREAU (INDIA) LIMITED IN ASSOCIATION WITH DUN & BRADSTREET AND TRANS UNION _______________________

PRESENTED BY :AY U S H I M I T TA L I S H A N T M A H A JA N N I M I T A G A R WA L SANDEEP GULERIA S A R T H A K G U P TA S U G A N D H A S A C H D E VA

WHAT IS CIBIL ?
India's first Credit Information Bureau (India) Limited ,

incorporated in year 2000.

It is a repository of factual information on the credit

history and repayment records of commercial and consumer borrowers.

Established by the Government of India and the RBI.

The legislation has enabled banks to submit data to CIBIL

without obtaining borrowers consent.

MAJOR OBJECTIVES
To provide comprehensive credit information by gathering

credit related information regarding commercial and consumer

borrowers.
To maintain a database of this information and selling it in the

form of credit reports to a closed user group of Members.

HOW DOES CIBIL OPERATES ?

Collects, Collates and Disseminates credit information of

borrowers from its Members (who are actually credit grantors).

This information will be supplement by CIBIL with public

domain information.
Allows the credit grantors to have access to its database to

search and gain a complete picture of the payment history of a credit applicant.

CIBIL OPERATION (CONTD.)

Reports could be obtained from CIBIL only by Members who

contribute all data about the borrowers

CIBIL collects commercial and consumer credit-related data

and collates such data to create and distribute credit reports to

Members
CIBIL does not grant or deny credit.

MEMBERS OF CIBIL

Banks
Financial Institutions

Non Banking Financial Companies

Housing Finance Companies State Financial Corporations Credit Card Companies

CIBIL THE PROMOTERS

Indias largest bank

Indias largest HFC

40%

40%

10%
Amongst the worlds largest consumer bureaus

10%
Dun & Bradstreet
Worlds leading provider of B2B credit information

CIBIL THE SHAREHOLDERS

The shareholding pattern now is as follows: Shareholding Distribution (%)
Standard Chartered Bank 5% Central Bank of India 5% ICICI Bank Ltd. 10% Citicorp Finance (India) Ltd 5% GE Strategic Investments India 2.5% Bank of Baroda 5% State Bank of India 10% Trans Union International Inc. 10%

Dun & Bradstreet Information Services India Pvt. Ltd 10% Bank of India 5%

Union Bank of India 5% Punjab National Bank Sundaram Finance Ltd. 5% Housing Development 2.5% Finance Corporation Ltd. Indian Overseas Bank 10% 5%

The Hong Kong and Shanghai Banking Corporation Ltd. 5%

COMPARATIVE ANALYSIS BETWEEN PRIVATE AND PUBLIC SECTOR BANKS PERFORMING ON THE NPA GROUNDS
YEARS
1997 1998 1999

SBI
7.3 6.07 7.33

PNB
10.38 9.57 8.96

BoB
7.8 6.12 7.7

ICICI
3.22 1.14 2.88

HDFC
2.12 1.2 1.08

Axis
3.66 5.63 6.32

2000
2001 2002

6.65
5.33 5.63

8.52
6.69 5.32

6.95
6.77 4.98

1.53
3.36 5.48

0.77
0.45 0.5

4.71
2.39 3.46

2003
2004 2005 2006 2007

4.5
3.48 2.65 1.87 1.32

3.86
0.98 0.2 0.29 0.28

3.72
2.99 1.45 0.87 0.6

5.21
2.21 1.65 0.72 0.78

0.4
0.2 0.24 1.2 0.43

2.39
1.29 1.39 0.98 0.72

CIBIL PRODUCTS & SERVICES

1. Consumer Credit Information Report (CIR)
Based on information database of individual borrowers. Tool used by credit grantors at the time of new customer

acquisitions.
Provides factual information on credit histories of borrowers enabling institutions to make lending decisions.

With CIRs credit grantors are equipped to identify risk areas,

disburse credit faster , with greater efficiency and grow business profitability.

2. Portfolio Review Report

An extremely effective tool for credit grantors to review the risk
associated with the existing portfolio of customers. Provides the credit grantor with a comprehensive view of their borrowers credit relationships across multiple lenders.

3. CIBIL TransUnion Score

Indias first generic score and has become the most trusted indicator for prudent decision making by credit grantors. With it, the credit grantor can effectively predict the likelihood of

an applicant becoming more than 91 days delinquent on one or

more tradelines over the subsequent 12 months.

4. CIBIL TransUnion Personal Loan Score

First and only score for the Indian market to predict the likelihood of an applicant or customer becoming more than 91 days

delinquent on a personal or consumer loan over the next 12

months. This score is the result of collaboration between Credit

Information Bureau (India) Limited (CIBIL) and TransUnion. 5. Bureau Credit Characteristics (BCC)
List of predefined characteristics summarizing various aspects of a

customers credit information.

TYPE OF INFORMATION IN THE CIR?

The CIR includes the following information: Basic borrower information like: Name Address In case of individuals: Identification numbers Passport ID Voters ID Date of birth In case of non-individuals: D-U-N-S Number Registration Number Legal Constitution

INFORMATION IN THE CIR (CONTD.)

Records of all the credit facilities availed by the borrower. Past payment history. Amount overdue.

Number of inquiries made on that borrower, by different

Members. Suit-filed status.

COMMERCIAL CIR
BORROWER INFORMATION
Name and Address
D-U-N-S Number Other Identification numbers; e.g.

ACCOUNT DETAILS
Number of credit facilities
Credit type Loan amount

PAN, Registration No.

Legal constitution Relationship details; e.g. major

Outstanding amount
Asset classification Wilful defaulter and suit-filed

shareholders, directors and their

addresses and D-U-N-S Number

Number of inquiries made on the

status
Guarantor details

borrower

INFORMATION NOT IN CIR?

The CIR does not contain: Income / Revenue details

Amount(s) deposited with the bank

Details of borrowers' assets Value of asset(s) mortgaged Details of investment(s)

CIBIL SCORE
The score is an objective numeric summary of that information. The CIBIL TransUnion Score takes a "snapshot" of a consumer's CIR and with the use of advanced analytics moulds the information into a 3-digit number representing the probability that a consumer will default on a credit facility over the next 12 months. The possible score ranges between 300-900. Each member (that chooses to use the CIBIL TransUnion Score) has its own benchmark of the number that constitutes a "good" score. For example, a score of 670 may be an adequate score for some members but be inadequate for others. CIBIL does not recommend what score should be used as a cut-off for loan application eligibility.

CIBIL SCORE (CONTD. 1)

The Score Will Be "0" In The Following Scenarios :
Credit history is less than 6 months. Date Opened of account/s is less than 6 months from the current date.

The Score Will Be "-1" In The Following Scenarios :

Account information not available. CIR has only enquiries and account information not available. The last date reported or date closed is older than 24 months for all accounts. Some Credit Institution/s credit policy prevents them from providing loans to an applicant with scores of "0" or "-1.

CIBIL SCORE (CONTD. 2)

Factors Influencing The Score Are: Payment History
Outstanding Debt Length of Credit History Number and types of credit accounts Utilization Applications for new credit.

RECTIFICATION OF INACCURATE INFORMATION IN THE CIBIL

To rectify information in a credit report drawn on the person:
Contact the credit grantor from whom the person has availed the

loan and request the necessary changes. The credit grantor will then report the change to CIBIL and CIBIL will subsequently make the necessary updates in records.

BENEFITS OF CIBIL
For Credit Grantor:

Provides access to better credit information by allowing credit grantors to

exchange credit information while ensuring they do not lose their

competitive advantage.

Automated decisioning system leading to lower cost of credit evaluation, consistent decisioning and greater efficiency.

Assists in evaluating and monitoring repayment ability and payment diligence.

Lowers default risk by assisting credit grantors improve their credit portfolios.

Allows credit grantors to price the risk appropriately.

BENEFITS OF CIBIL (CONTD.)

For Borrowers:

Provides faster access to credit. Reduces cost of borrowing for borrowers with good credit records.

Reduces subjectivity in the credit assessment process.

Encourages borrowers to maintain greater self discipline in acquiring financial commitments.

Allows borrowers to build reputational collateral by following

correct repayment behaviour.

LATEST ON CIBIL
360 credit grantors have accepted membership
181 Banks Over 90% total
129 NBFCs 8 SFCs 2 CCCs 10 FIs 25 HFCs

credit
181 Banks

outstanding

amongst

Commercial Banks. 25 HFCs Over 70% total credit HFCs. outstanding amongst

10 FIs Over 90% total credit outstanding amongst FIs.

8 SFCs Substantial portion of the credit outstanding amongst SFCs. 2 CCCs - 90% total credit outstanding amongst Credit Card Companies.

129 NBFCs Substantial portion of the credit outstanding amongst NBFCs.