SBI to resume mega e-auction for properties next month

To hold separate auction for retail; commercial assets

State Bank of India (SBI), the country’s largest lender, will resume next month the mega e-auctions for properties, acquired from borrowers following defaults.

Gaining from its experience with a similar auction in March 2015, the bank will hold separate auctions for retail (predominantly residential units) and commercial properties.

In March, SBI’s e-auction for properties worth Rs 1,200 crore had failed to enthuse investors. It could sell only 124 properties of the 350 put on sale and the bank could realise only about Rs 90 crore. The response for industrial and commercial properties was not up to expectations.

This was first effort by the lender to hawk properties on large scale. While lender has been able to contain fresh slippages, it is struggling to dispose of distressed properties through auction.

The fourth quarter ending March being last quarter of financial year is crucial for recovering dues to bolster the bottom-line.

SBI had put on block properties, including offices, shops, factory buildings and residential apartments spread across 25 cities after it had put out a public notice on Thursday.

SBI launches contactless cards

State Bank of India has introduced Contactless Debit Card and SBI Signature Contactless Credit Card for quick, secure and hassle free payments at merchant outlets.

Contactless Cards use the near-field communication (NFC) technology to make payments by waving or tapping the card near the contactless reader instead of swiping or dipping. These Cards will replace the use of cash at retail establishments like convenience stores, petrol stations and super markets where speed and convenience are important. Credit Card will have fraud liability cover of Rs 1,00,000.

At present the ceiling on amount per tap (transaction) is Rs 2,000 and SBI has approached Reserve Bank of India to increase ceiling to Rs 5,000 per transaction.