CREDIT INFORMATION BUREAU INDIA LIMITED

1. _________________________________________
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

2. 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 borrower’s consent.

3. 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.

4. 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.

5. 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.

6. MEMBERS OF CIBIL
 Banks
 Financial Institutions
 Non Banking Financial Companies
 Housing Finance Companies
 State Financial Corporations
 Credit Card Companies

7. CIBIL – THE PROMOTERS
India’s largest bank India’s largest HFC
40% 40%
10% 10%
Dun & Bradstreet
Amongst the world’s World’s leading provider
largest consumer bureaus of B2B credit information

8. CIBIL – THE SHAREHOLDERS
The shareholding pattern now is as follows: -
Shareholding Distribution (%)
Bank of Baroda
Standard GE Strategic 5%
Chartered Bank Investments India State Bank of India
5% 2.5% 10% Trans Union International
Central Bank of India
Inc. 10%
5%
ICICI Bank Ltd.
10% Dun & Bradstreet
Information Services
India Pvt. Ltd
Citicorp Finance (India) 10%
Ltd 5%
Bank of India
5%
Union Bank of India
5% The Hong Kong and
Shanghai Banking
Punjab National Bank Sundaram Finance Ltd. Corporation Ltd.
5% Housing Development 2.5% 5%
Finance Corporation Ltd. Indian Overseas Bank
10% 5%

9. COMPARATIVE ANALYSIS BETWEEN PRIVATE AND PUBLIC
SECTOR BANKS PERFORMING ON THE NPA GROUNDS
YEARS SBI PNB BoB ICICI HDFC Axis
1997 7.3 10.38 7.8 3.22 2.12 3.66
1998 6.07 9.57 6.12 1.14 1.2 5.63
1999 7.33 8.96 7.7 2.88 1.08 6.32
2000 6.65 8.52 6.95 1.53 0.77 4.71
2001 5.33 6.69 6.77 3.36 0.45 2.39
2002 5.63 5.32 4.98 5.48 0.5 3.46
2003 4.5 3.86 3.72 5.21 0.4 2.39
2004 3.48 0.98 2.99 2.21 0.2 1.29
2005 2.65 0.2 1.45 1.65 0.24 1.39
2006 1.87 0.29 0.87 0.72 1.2 0.98
2007 1.32 0.28 0.6 0.78 0.43 0.72

10. 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.

11. 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
borrower’s credit relationships across multiple lenders.
3. CIBIL TransUnion Score
 India’s 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.

12. 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
customer’s credit information.

13. TYPE OF INFORMATION IN THE CIR?
The CIR includes the following information:
 Basic borrower information like:
 Name
 Address
In case of individuals: In case of non-individuals:
 Identification numbers  D-U-N-S® Number
 Passport ID  Registration Number
 Voters ID  Legal Constitution
 Date of birth

14. 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.

15. COMMERCIAL CIR
BORROWER INFORMATION ACCOUNT DETAILS
 Name and Address  Number of credit facilities
 D-U-N-S® Number  Credit type
 Other Identification numbers; e.g.
 Loan amount
PAN, Registration No.
 Outstanding amount
 Legal constitution
 Relationship details; e.g. major  Asset classification
shareholders, directors and their  Wilful defaulter and suit-filed
addresses and D-U-N-S® Number status
 Number of inquiries made on the
 Guarantor details
borrower

16. 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)

17. 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.

18. 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“.

19. 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.

20. 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.

21. 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.

22. 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.

23. LATEST ON CIBIL
360 credit grantors have accepted membership
 181 Banks – Over 90% total
129 credit outstanding amongst
NBFCs 181
Banks
Commercial Banks.
8 SFCs  25 HFCs – Over 70% total
2 CCCs credit outstanding amongst
10 FIs 25 HFCs HFCs.
 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.