Friday , November 16 2018
Home / Banking Notes / Credit Rating Agencies in India – Headquarters & Their Roles

Credit Rating Agencies in India – Headquarters & Their Roles

A Credit Rating Agency is an organization that doles out appraisals to the indebted individuals as indicated by their capacity to pay back the obligation in an auspicious way. These offices give profoundly fundamental hazard evaluation reports and investigative arrangements and allot a conclusive financial assessment to the two people and additionally associations. These reports are viewed as essential for getting the credit.

Credit Rating Agencies in India has developed over a period of time. The most popular Credit Rating Agencies in India are CRISIL, ICRA, CARE, ONICRA, and SMERA.

Any individual, corporation, state or provincial authority, or sovereign government that seeks to borrow money are assigned with a Credit Rating.

CIBIL

Full Form: Credit Information Bureau India Limited.

Year of Establishment: 2000.

Headquarters: Mumbai, India.

Role of CIBIL in Rating Debtors: Important Details

  • CIBIL is a Credit Rating Agency working in India, established in August 2000.
  • TransUnion CIBIL is one of the four credit departments working in India
  • It keeps up credit records of more than 550 million people and 32 million organizations.
  • Their fundamental target is to make data arrangements that empower organizations to develop and give buyers quicker, less expensive access to credit and different administrations.

CRISIL

Full Form: Credit Rating Information Services of India Ltd.

Year of Establishment: 1987

Headquarters: Mumbai, India

CRISIL, A Trusted Rating for Debtors, Investors, Intermediaries in India: Important Details

  • CRISIL is India’s first FICO score organization, with a piece of the pie of over 60%.
  • It was advanced by ICICI Ltd, UTI, and other budgetary establishments.
  • In 1988, it initiated its operations.
  • In 1995, in association with National Stock Exchange, CRISIL created CRISIL500 Equity Index.
  • CRISIL’s organizations work from 8 nations: USA, Argentina, Poland, UK, India, China, Hong Kong and Singapore.
  • In 1996, it aligned with the Standard and Poor’s (S&P) Ratings Group and in the following year, Standard and Poor’s (S&P) Ratings Group gained 9.68% offers in it.

ICRA

Full Form: Investment Information and Credit Rating Agency of India

Year of Establishment: 1991

Headquarters: Gurgaon, India

ICRA as an Indian Credit Rating Agency: Important Details

  • ICRA originally named as Investment Information and Credit Rating Agency of India Limited (IICRA India) is an independent and professional investment information and credit rating agency in India.
  • It is India’s second credit rating agency.
  • It was promoted by Industrial Finance Corporation of India (IFCI), and other leading financial/investment institutions.

Role of ICRA: Corporate debt rating, Financial segment rating, Issuer rating, Bank advance FICO score, Public back rating, Corporate administration rating, Structured fund rating, SME rating, Mutual reserve rating, Infrastructure part evaluating, Project fund rating and Insurance division rating are the kinds of appraisals offered by ICRA.

CARE

Full Form: Credit Analysis & Research Limited.

Year of Establishment: 1993.

Headquarters: Mumbai, India.

CARE as an Indian Credit Rating Agency: Important Details

  • CARE is India’s third Credit Rating Agency.
  • It commenced its operations in April 1993.
  • It was mainly promoted by IDBI along with Canara Bank, UTI and other financial and lending institutions.

Role of CARE: It offers credit ratings in the following areas: Debt ratings, Bank loan ratings, Issuer ratings, Corporate governance, Recovery ratings, Financial sector, and Infrastructure ratings.

It is the second-largest Credit Rating Agency in India.

ONICRA

Full Form: Onida Individual Credit Rating Agency of India

Year of Establishment: 1993

Headquarters: Gurgaon, India

ONICRA As an Indian Credit Rating Agency: Important Details

  • ONICRA is a private part office which was set up by Onida Finance.
  • It plays out an extensive variety of zones, for example, Accounting, Finance, Back-end Management, Analytics, and Customer Relations.
  • ONICRA have Pan India Presence with workplaces more than 125 areas.
  • It examines information and organizes conceivable rating answers for Small and Medium Enterprises and Individuals.

Role of ONICRA: Risk assessment reports and analytical solutions for individuals, MSME’s as well as for well-established corporate organizations are offered by ONICRA.

SMERA

Full Form: Small and Medium Enterprises Rating Agency of India Limited.

Year of Establishment: 2005.

Headquarters: Mumbai, India.

SMERA As an Indian Credit Rating Agency: Important Details

  • SMERA is a FICO assessment office in India which was set up for smaller scale, little and medium undertakings (MSME).
  • It was built up in 2005 by SIDBI, Dun and Bradstreet Information Services India Private Limited (D&B) and some main banks in India.
  • In 1999, SMERA has been enlisted under Securities and Exchange Board of India and is just the 6th rating office in India to rate issues, for example, IPO, securities, business papers, security receipts and others.

Role of SMERA: As an external credit assessment institution (ECAI), Reserve Bank of India (RBI) accredited SMERA to rate bank loan ratings under Basel II guidelines.

BWR

Full Form: Brickwork Ratings India Private Limited.

Year of Establishment: 2007

Headquarters: Bangalore, India.

BWR as an Indian Credit Rating Agency: Important Details

  • Brickwork Ratings is a credit rating agency in India which was established in 2007.
  • It also plays a significant role in the grading of real estate investments, hospitals, educational institutions, tourism, NGOs, IREDA, MFI, and MNRE.
  • It is also accredited by Reserve Bank of India (RBI) and empaneled by NSIC.
  • It offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services.

Role of BWR: BWR is responsible for rating bank loans, municipal corporation, capital market instrument, financial institutions, SME’s and corporate governance ratings.

ECIS

Full Form: Equifax India (Equifax Credit Information Services Private Limited).

Year of Establishment: 2010

Headquarters: Mumbai, India.

ECIS as an Indian Credit Rating Agency: Important Details

  • Equifax India is a subsidiary of Equifax US which was established in 2010.
  • It formed a joint venture between the parent company and seven prime financial institutions in India (UBI, SBI, Bank of Baroda, Bank of India, Kotak Mahindra, Sundaram Finance and Religare).
  • Equifax India has an energetic team of experts and leaders who come from the Banking and Financial services of the world.

Role of ECIS: Reports provided by Equifax India includes Basic or Enhanced consumer information report, Equifax alerts, and Microfinance institution credit information.

Experian India

Full Form: Experian India.

Year of Establishment: 2006

Headquarters: Mumbai, India

Experian India As an Indian Credit Rating Agency: Important Details

  • In February 2010, Experian India became the first Credit Information Company to be awarded a license to the new Credit Information Companies (Regulation) Act (CICRA) 2005.
  • Experian India also became the first CICRA licensed credit bureau on 12th August 2010, to go live with its operations.

Role of Experian India: Experian India is a Credit Rating Agency in India which consists of two types of companies: Experian Credit Information Company of India Private Limited (provides credit information) and Experian Services India Private Limited (provides relevant data for organizations to minimize risk and maximize revenue).

 

error: Content is protected !!