State Bank of India has sold 4 per cent stake in the largest credit information company Credit Information Bureau India Ltd (Cibil) for an estimated Rs 72 crore, reported PTI.
"We had 10 per cent stake in Cibil and have sold 4 per cent to two IIFL subsidiaries," SBI deputy managing director and Chief Financial Officer P K Gupta told PTI.
Cibil is the largest and the oldest credit bureau in the country having entered the market in 2000. It claims to enjoy almost 90 per cent of the credit information market in India which has three other players - Experian, Equifax and HighMark.
The US-based TransUnion International owns a 55 per cent stake in the company. The rules allow 74 per cent FDI in credit information companies.
SBI has sold 3 per cent of its stake in Cibil to IIFL India Alternatives, a private equity fund of the India Infoline Group and 1 per cent to India Infoline Finance, the NBFC arm of IIFL.
Gupta did not to divulge the amount raised by the bank.
However, according to market sources, the value of 4 per cent stake could be around Rs 72 crore. At this price, the Cibil has a valuation of close to Rs 1,800 crore.
Shareholders in Cibil include SBI, ICICI Bank (6 per cent), Bank of India, Bank of Baroda, Union Bank of India, Indian Overseas Bank, HSBC (5 per cent each) and Aditya Birla Trustee Company (4 per cent).