CRISIL

WHY IN NEWS?

CRISIL warns of further spike in NBFC, housing finance companies NPAs.

ABOUT CRISIL

• CRISIL (formerly Credit Rating Information Services of India Limited) is a global analytical company providing ratings, research, and risk and policy advisory services.
• CRISIL, India's first credit rating agency, was incorporated in 1987, promoted by the erstwhile ICICI Ltd along with UTI and other financial institutions.
• CRISIL’s majority shareholder is Standard & Poor's, a division of McGraw Hill Financial and provider of financial market intelligence.
• The main function of CRISIL is to establish the creditworthiness of companies based on the business strengths, the board, the market share, and reputation of the company and so on.
• CRISIL rates organization like public limited companies, banks and financial organizations and not individuals.

CRiSidEx

• CriSidEx, India’s first sentiment index for micro and small enterprises (MSEs) was developed jointly by CRISIL and SIDBI.
• CriSidEx is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive).
• CriSidEx will have two indices, one for the 'survey quarter' and another for 'next quarter' once a trend emerges after few rounds of the survey, providing independent time series data.

Prelims Question

Q. CriSidEx, India’s first sentiment index for micro and small enterprises (MSEs) was developed by:
a. CRISIL and SIDBI
b. RBI
c. CRISIL and BSE
d. NITI Aayog

Answer to the Prelims Question