NPAs hot up e-auction space
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The e-auction of stressed assets of various banks is hotting up with NPAsource.com, aiming to undertake over `600 crore worth of e-auctions of the non-performing-assets (NPAs) of various banks in 2013-14.The scope for growth is enormous as today, even tractors are being sold through the e-auction route by banks, said Mr Devendra Jain, chairman and managing director, Atishya Group which set up the portal. This is the only portal that e-auctions bank NPAs.The portal is already empanelled with nine banks for conducting e-auctions of their NPAs since early this year after the ministry of finance (MoF) made it mandatory for all commercial banks to move from physical auctions to the e-auction mode for all cases of NPAs under the Debt Recovery Tribunal (DRT).The portal has already conducted over 200 deals worth more than Rs 100 crore till now. It expects residential, agricultural, commercial and industrial properties to be sold through the e-auction route. The property market is not favourable for big deals because of the economic slowdown, he said.In addition to the e-auction, the portal has Rs 30,000 crore worth of listed properties that form part of the properties that the banks have taken over.If buyers show any interest in any of these properties, Jain said that they then liase with the banks for the sale of the distressed assets.The Atishya group recently received risk capital funding from the Small Industries Development Bank of India (SIDBI) and this “underlines the potential for growth of NPA-source.com through e-auctions and its various other services for resolving bad debts of various banks,” said Jain.
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