NPAsource.com has conducted 200 deals worth Rs100 crore so far and sees e-auctions of NPAs worth Rs600 crore in FY14
NPAsource.com, which focuses on resolution of stressed assets, said it expects to undertake e-auctions of various banks’ non-performing-assets (NPAs) worth about Rs600 crore during 2013-14. It would undertake e-auction of NPAs for Dena Bank, IDBI Bank, SIDBI, Bank of Baroda, Indian Overseas Bank, Indian Bank, State Bank of Hyderabad, Bank of Maharashtra as well as Kotak Mahindra Bank.
“We already have a platform for all stakeholders for resolution of NPAs and so the e-auction route is a natural growth ladder for us. Besides, despite NPAs being critical issue for banks, and e-auction of NPAs just at its infancy stage, there is a lot of scope for the company to grow in this area. Today, even tractors are being sold through the e-auction route by banks,” said DK Jain, chairman and managing director of Atishya group, which owns NPAsource.com.
The portal believes that the growth in e-auctions is likely to be strong as bad assets of banks have grown significantly. Gross NPA of public sector banks rose to Rs1.76 lakh crore as on June 2013 from Rs1.55 lakh crore as on March 2013.
Earlier this year, Ministry of Finance (MoF) made it mandatory for all commercial banks to move from physical auctions to e-auction mode for all cases of NPAs under the Debt Recovery Tribunal (DRT). NPAsource.com said till date it had already conducted over 200 deals worth more than Rs100 crore and expect residential, agricultural, commercial and industrial properties to be sold through the e-auction route.