India’s third largest private bank Axis Bank Ltd said in a statement that it has signed an agreement to sell 14 million equity shares in Mumbai-based Experian Credit Information Co. of India Ltd for a total cash consideration of Rs64 crore. The deal for the 10% stake was closed at a price of Rs45.7 per share. The transaction, which is subject to approval by the Reserve Bank of India (RBI), is expected to be completed by April. In 2015-16, Experian Credit Information earned a total income of Rs28.7 crore, compared with Rs15.7 crore in the year-ago period.
Founded in 2006, Experian Credit Information is a joint venture between GUS Holdings BV(Netherlands), Axis Bank Ltd, Union Bank of India, Indian Bank, Federal Bank Ltd, Punjab National Bank, Sundaram Finance Ltd, Magna Fincorp Ltd, and VIC Enterprises Private Ltd.
It offers credit information services. In February 2010, it became the first credit information firm to be awarded a licence under the new Credit Information Companies (Regulation) Act (CICRA), 2005. On 12 August 2010, it became the first CICRA-licensed credit bureau to launch its operations.
In November, Mint reported that Axis Bank is looking to divest its 8% stake in mobile payments firm Mswipe for around $20 million in a deal that is likely to value the firm at $200-$250 million. The lender disappointed with its December quarter earnings, with profit dropping by 73.3% on a year-on-year basis to Rs580 crore. The bank’s net interest income (NII) grew 4% year-on-year to Rs4,334 crore during the quarter from Rs4,162 crore in the same quarter last year. Gross non-performing assets rose almost 25% to Rs20,467 crore from Rs16,379 crore at the end of the September quarter.
Source : Livemint