Magma Fincorp picks up 7 per cent in Experian India

Magma Fincorp Limited, a leading asset finance company, has picked up seven per cent stake in Experian Credit Information Company of India Pvt Ltd, the Indian Credit Information Company (CIC) arm of the global information services company, Experian.

The proposed CIC is a joint venture of Experian and seven public, private sector banks as well as non-banking financial institutions in India, which including Axis Bank, Federal Bank, Indian Bank, Punjab National Bank, Sundaram Finance and Union Bank of India.

"Experian will own 49 per cent in the JV, while the Indian partners will own the balance 51 per cent. Besides Magma’s seven per cent stake, Axis Bank and Union Bank of India will hold 10 per cent each, PNB seven per cent, Indian Bank and Federal Bank 5 per cent each while Sundaram Finance will also hold seven per cent," said a release.

The Reserve Bank of India (RBI) in April 2009 granted Experian a provisional license to create a CIC in India. The company has secured approval from the Foreign Investment Promotion Board to invest 49 per cent in the Experian CIC, with its Indian joint venture partners holding the remaining equity. The company has recently applied to the RBI to secure the final license.

"The major role for the bureau will be to help the Indian clients, especially the banks and financial services companies, make better credit lending decisions which will accelerate the financial services sector's development and protect consumers," said Sanjay Chamria, vice-chairman and MD, Magma Fincorp Limited.