Credit information usage has contributed to decline in NPAs and improvement of asset quality-Mr. M V

By: MSL India
 
MUMBAI, India - March 20, 2013 - PRLog -- Mumbai, March 20, 2013: Credit Information Bureau (India) Ltd. (CIBIL) and TransUnion organized the Fifth Annual Credit Information Conference in the city yesterday. The theme for this year’s conference was ‘Paradigm Shift in Risk Management: Transforming information and insights into action.’

Mr. R. Venkatachalam, Deputy Managing Director, State Bank of India, the keynote speaker for the event, commended CIBIL’s Direct-to-Consumer initiatives – “CIBIL has offered a fully automated authentication process for consumers, allowing thousands of customers to access their CIBIL TransUnion Score and Credit Report online. This is an exemplary model that facilitates value creation, fosters innovation for achieving synergistic business transformation and cost optimization, ultimately serving the need for better, more easily accessible and sensible credit information”. He went on to add that the advent of credit score was a vital development in the history of credit information. It paved the way for automated decision making technology. He also stated that it was essential for institutions to not only access but also put the data provided by the credit bureaus to maximum use so that risks can be substantially reduced and NPAs can also be brought down.

Over the years, CIBIL’s various innovative products have helped the country’s leading credit institutions and banks to evaluate and manage risk effectively. Banks apply their credit and risk management policy to determine their lending decisions. Risk management has also changed considerably given the ever-evolving nature of the economy. It now requires credit bureaus to have a more in-depth and detailed view of a borrower’s credit history to enable financial institutions to take informed decisions in the loan disbursal process.

Mr. M.V. Nair, Chairman, CIBIL said “Since CIBIL launched their Direct-to-Consumer operations in 2009, there has been a surge in the number of consumers accessing their credit information. They are now accessing their credit scores regularly to keep a tab on their credit health.” He also mentioned that CIBIL’s member base had expanded to over 900 members which included public sector banks, private sector banks, NBFCs, co-operative banks among others.

Speaking at the event, Mr. M.V. Tanksale, Chairman and Managing Director, Central Bank of India stated, “CIBIL’s Portfolio Review Reports have been very useful for overall credit risk management as they enable better risk quantification and improved trend monitoring.” He also mentioned that credit score has gained utmost importance in the country today.

The CIBIL TransUnion Score and the CIBIL Credit Information Report have become one of the most important parameters for credit institutions to make lending decisions. More and more consumers have also started accessing their credit reports and scores before availing loans to better understand their financial health.

Mr. Arun Thukral, MD, CIBIL stated “CIBIL is committed to providing credit information tools to its member and facilitate sounder credit growth by creating a host of advanced value added products and services.”  

CIBIL, India’s largest credit information bureau maintains credit information on more than 250 million consumers and 11 million businesses. All leading credit institutions contribute data on their borrower’s credit histories on a monthly basis to CIBIL. Also while sanctioning a new credit card or loan, banks and other credit institutions check each loan applicant’s past payment performance with CIBIL. Hence it remains imperative for individuals to maintain a healthy credit history and also to access one’s credit information report and credit score before applying for a loan. It helps the borrowers understand their current financial position and improves their chances of acquiring a loan.

About CIBIL

CIBIL is India’s first credit information company. It creates immense value for financial institutions by providing objective data and tools to help them manage risk, and devise appropriate lending strategies thus reducing cost and maximizing portfolio profitability. CIBIL benefits both credit grantors and consumers by collecting, analyzing, and delivering information on credit histories of millions of borrowers. It provides its members with information on both consumer and commercial borrowers, thus enabling them make sound credit decisions across both individuals and businesses. To know more about CIBIL visit www.cibil.com.  

About TransUnion

As a global leader in credit information and information management services, TransUnion creates economic and competitive advantages for businesses and consumers. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive solutions that leverage data, advanced analytics and decisioning technology. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in 32 countries on five continents. www.transunion.com/business.
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