MICROCAPITAL BRIEF: Equifax India to Launch Microfinance Credit Bureau In Partnership with Bank of Baroda, Bank of India, Kotak Mahindra Prime, ReligareFinvest, Sundaram Finance, Union Bank of India

The Indian unit of Equifax Credit Information Services, a US-based consumer credit reporting agency, has partnered with the following six Indian banks to launch a credit bureau devoted to transactions in the microfinance sector: Bank of Baroda, Bank of India, Kotak Mahindra Prime, ReligareFinvest, Sundaram Finance and Union Bank of India. Samir Bhatia, CEO of Equifax India, said, “With the Equifax microfinance credit bureau in place, consumers who may have otherwise been unable to obtain assistance can now establish their credit history and obtain funding to continue their ventures.”

Alok Prasad, CEO, Microfinance Institutions Network (MFIN), said, “The industry is unanimous in its view that dedicated credit bureaus for the sector will bring much needed transparency at the client level and will help curb multiple lending.” None of the banks involved in the Equifax initiative are MFIN members. 

The Bank of Baroda, a private, limited bank, reported total assets of INR 2.8 trillion (USD 62 billion) in 2010. The Bank of India, a state-owned commercial bank, reported total assets of INR 59.6 billion (USD 13.2 billion) in 2010. Specializing in car financing, Kotak Mahindra Prime is a wholly owned subsidiary of the India-based Kotak Mahindra Bank limited, and reported total assets of INR 102 billion (USD 2.3 billion). Religare Finvest Limited (RFL), a subsidiary of Religare Enterprises Limited, is a non banking finance company (NBFC) specializing in working capital loans, loans against property and loans on commercial assets. Sundaram Finance is a NBFC in India whose financial services include home loans and car financing. The Union Bank of India is a public-sector bank based in Mumbai with total assets of approximately USD 44 billion.

By Rick Altieri, Research Associate

About the Microfinance Institutions Network: The Microfinance Institutions Network (MFIN) is a trade association of Indian microfinance lenders that, as of 2011, is presided over by Vijay Mahajan, chairman of microfinance institution BASIX. MFIN consists of 39 member microfinance institutions, all of which operate in India as non-banking finance companies and together reportedly account for more than 80 percent of the Indian market. MFIN is supported by Omidyar Network, a US-based philanthropic investment firm, and the International Finance Corporation (IFC), a member of the World Bank Group.

About Union Bank of India: Union Bank of India is a public sector bank based in Mumbai, India. The Indian government owns 55 percent of the bank’s share capital. It offers a range of financial services to individuals, small and medium-sized enterprises and larger corporations. As of March 2010, the bank reported total assets of approximately USD 44 billion and a loan portfolio of approximately USD 27 billion.

Sources and Additional Resources:

Business Standard: “ Equifax India Launches Microfinance Credit Bureau,” May 30,2011. http://www.business-standard.com/india/news/equifax-india-launches-microfinance-credit-bureau/136906/on

Moneylife: “Equifax launches new microfinance bureau in India,” May 30 2011. http://www.moneylife.in/article/equifax-launches-new-microfinance-bureau-in-india/16819.html

Bank of Baroda: “2010 Balance Sheet.” http://www.bankofbaroda.com/fin/fin_fy2010_cashflow.asp

Sundaram Finance: “Welcome to the Sundaram Finance Group:” http://www.sundaramfinance.com/
Religare Finvest http://www.religarefinvest.com/aboutus.aspx

NDTV Profit: “Crisil AA for Kotak Mahindra Prime’s Subordinated Debt Issue” http://profit.ndtv.com/news/show/rating-crisil-aa-for-kotak-mahindra-prime-s-subordinated-debt-issue-146910?schedules=twentyfourseven

Bank of India: “2010 Annual Report.” http://www.bankofindia.com/UserFiles/File/BOI%20Annual%20Report-2010.pdf

MicroCapital Brief, “Microfinance Institutions Network (MFIN) Aims to Increase Accountability in India with Appointment of Ombudsmen,” July 6, 2010. https://www.microcapital.org/microcapital-brief-microfinance-institutions-network-mfin-aims-to-increase-accountability-in-india-with-appointment-of-ombudsmen/ 

MicroCapital Brief, “Indian Microfinance Funds Seek to Expand Focus Beyond Microcredit,” March 29, 2010. https://www.microcapital.org/microcapital-brief-indian-microfinance-funds-seek-to-expand-focus-beyond-microcredit/

MicroCapital’s Microfinance Universe Profile: Microfinance Institutions Network, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29 

MicroCapital’s Microfinance Universe Profile: Union Bank of India, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Union+Bank+of+India

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

Similar Posts: