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E-auctions of NPA properties gain traction in smaller cities

Over 50% of NPA properties e-auctions coming from smaller cities

BS Reporter  |  Mumbai 

The benefits of electronic auctions of banks' non-performing asset (NPA) properties have spread to tier-II and tier-III cities. Over 50% of NPA properties e-auctions coming from smaller cities like Jabalpur, Chandrapur, Aurangabad, Bhilwara, Hubli, Dharwad, Erode, Dharmapuri, Bhavnagar, Valsad, Gandhidham, Ujjain, Kannur, Kolhapur and Satara, amongst others. Even tractors have been successfully sold by through the e-auction route.

These are the trends coming out of more than 500 NPA properties' e-auction transactions undertaken over the last ten months by NPAsource.com, a portal which focuses on resolution of stressed assets. NPAsource.com has total NPA properties worth around Rs 27,500 crore registered on its portal across 27,626 units.

DK Jain, chairman & MD of Atishya Group, the owner of NPAsource.com said, "Contrary to the belief that major users of technology are from big cities mainly, we found significant participation in e-auctions of NPA properties from tier-II and tier-III cities. It is also interesting to find that due to various factors, the average realisation based on base price from smaller cities has often been higher than the realisation in case of metros and other major cities. We have also been able to sell NPA assets such as poultry farm and vehicles like tractors in these smaller cities through e-auctions."

Jain added NPAsource.com is now increasingly focusing on e-auctions and has tied-up with several for ensuring speedy resolution of NPAs. "These figures prove that e-auctions have wider reach than physical auctions and that they are more remunerative, involve lower costs, transparent in nature and ensure level playing field for all participants. With gross NPAs of 40 listed shooting up by 35.20% or Rs 63,386 crore for the nine months ending December 2013 to cross the Rs 2.4 lakh crore mark, the e-auction of NPAs properties by banks will also zoom," he said.

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First Published: Tue, March 11 2014. 13:28 IST
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