Corporate News

Sify : Over 1 lakh e-auctions for banks

Over 1 lakh e-auctions for banks: Report Commercial banks in India are expected to conduct over one lakh e-auction transactions during financial year 2013-14 to sell properties of non-performing assets according to, a portal which focuses on resolution of stressed assets.

The portal said it expects residential, agricultural, commercial and industrial properties to be sold through the e-auction route, with the first two accounting for the largest number in terms of transactions.

With the Ministry of Finance making it mandatory for all commercial banks to move from physical auctions to e-auction mode for all NPA cases under the Debt Recovery Tribunal (DRT), there will be a spurt in e-auctions in 2013-14.

Also, the Ministry of Finance wants that NPAs under SARFAESI Act should gradually move to the e-auction mode, but has not made it mandatory.

Banking sector in India is currently under immense pressure as non-performing assets (NPAs) or bad loans grow irrepressibly.

The focus of most of the banks now is on recovering these dues as it has started impacting their profitability and margins. As on March 31, 2012, net NPAs of 40 listed banks were Rs 61,558 crore, which rose to Rs 92,398 crore as on December 31, 2012.

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