Indian Private Banks Rely on CIBIL Data Repositories for Lending / Monitoring

Private BanksIndian Private banks have a deeper usage of data than PSU banks. Some PSUs banks are big users of the credit bureau and there are others which are still learning to integrate the systems. The critical issue faced by PSU banks is digitalisation of documents and providing the same to CIBIL.

To increase the scope and to have early warning systems in place, CIBIL is working towards including Self Help Groups / Micro-finance Institutions to give information, as they are generally the first to lend credit to individuals. At the Banks end portfolio management is gaining importance at banks, more so in private and multinational banks, to track if their customers have increased leverage with other banks.

What are the Data Repositories Maintained by CIBIL ? What Activity Can CIBIl Track with Repository ?
Consumer database – Information of 150mn individuals and 250mn accounts [Up from 230 Mn Accounts in Sept-2012]. Data available since 1993 and month‐by‐month updates. [ CIBIL Tracking Reveals that 30‐35% customers are new to credit customers (NTC), largely comprising two wheeler loans. Gold loan data is available on monthly basis and is booked one month after loan is disbursed.]

Commercial entities database: 6.5mn entities or 11mn accounts. [Up from 2 Mn entities a year ago]

Mortgage database (CIBIL Mortgage Check): Where deeds are checked for double financing against the same property. It is different from the government’s database as it is not open to end customers. Currently, data on 8mn properties is available. [CIBIL has tracked that Incrementally ~30‐40% of home loans are balance transfer cases‐amidst rising competition and waiver of prepayment penalty]

Fraud database (CIBIL Detect): Repository of frauds committed, as reported by banks. It is set up in collaboration with IBA. Purely to be used by banks to identify people who have been involved in frauds or fraudulent transactions.

Average liquidation rate in metros for INR20mn loan is 1.5 years. Incrementally ~30‐40% of home loans are balance transfer cases‐amidst rising competition and waiver of prepayment penalty.

CIBIL Analytics & Credit Tools Within the bureau’s other offerings are decision making solutions to help financiers consume data better and integration of systems to help faster data usage. Along with credit quality monitoring, quality of acquisition is also monitored

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