NPAsource.com has done the study based on 6,359 units valued at Rs9,897 crore for the first 10 months of FY12
Tamil Nadu, Uttar Pradesh, Gujarat and Andhra Pradesh accounted for the highest value of non-performing asset (NPA) properties in 2011-12 according to a study by NPAsource.com, a portal started by Atishya Technologies Pvt Ltd.
Out of a total of 6,359 units valued at Rs9,897 crore across India in 10 months of FY12, Tamil Nadu has the largest amount of NPA properties valued at Rs1,261 crore spread across 663 units. Uttar Pradesh came second with 533 units with a value of Rs1,025 crore, followed by Gujarat with 349 properties worth Rs1,023 crore and Andhra Pradesh (AP) with 1,226 units valued at Rs1,004 crore.
NPAsource.com study also revealed that out of the different types of properties given as collateral against loans, commercial and industrial properties worth Rs5,633 crore spread across 2,925 units accounted for more than 50% of the total NPA properties. Land worth Rs2,793 crore spread across 1,146 land and 2,165 residential units valued at Rs838 crore were the other major categories in NPA properties.
Elaborating on the study done by NPAsource.com, Devendra Jain, CMD of Atishya Group, said, “While Mumbai is known to be the biggest centre for disbursement of loans to corporates, our study has found that Tamil Nadu and Uttar Pradesh have the largest amount of NPA properties by value in the first 10 months of 2011-12. Maharashtra comes at number five in terms of NPA properties by value. Our portal’s aim to bridge the gap between the buyers and the sellers of NPAs. It is designed to facilitate the best deals for disposal of NPAs by updating all the details of available assets in the Indian market.”
Mr Jain further added that Atishya Technologies is investing a total of Rs10 crore in its new portal, NPAsource.com, which manages and resolves NPAs in India (later globally) so as to benefit lenders, borrowers as well as investors.
Total NPAs in India as of March 31, 2011 were more than Rs90,000 crore as per the statistics released by the Reserve Bank of India (RBI) which does not include co-operative banks, SFCs, FIs & NBFCs, whereas globally this figure would run into trillions of dollars. World over, the scenario for NPAs is bleak as it faces multiple pitfalls: database are scattered and inadequate, they are not updated periodically, there is inadequate realisation from intrinsic worth of NPAs, lack of visibility and transparency for all stakeholders as well as no access facility of data on NPA for use by prospective investors or buyers.
The distribution of NPAs in the system follows the 80:20 rule whereby 20% by number of borrowers constitute for 80% of value of impaired assets and vice versa. The large impaired assets comprise industrial assets having good restructuring potential. “Our experience shows in value terms that more than 60% of the impaired assets are capable to be restructured or sold as going concerns. The small assets, however, have to be put through a recovery process, where the collateral based funding practice followed by the banking system offers a fair recovery potential” Mr Jain, added.
“Through our offshore office, at Dubai, which will be operational by March 2012, we plan to tie-up with foreign investors globally who would be interested in acquiring impaired assets in India for themselves or for their clients world-wide. In India, we are getting application for registrations from various interested parties like chartered accountants, consultants, advocates and property dealers apart from companies of all sizes,” said Mr Jain.