In what has become the season for state-run auctions, State Bank of India will on Saturday conduct one of its biggest auctions of seized properties worth Rs.1,200 crore across 26 cities towards redeeming its bad debts.
More than 350 properties, which include warehouses, offices, residential complexes and shops, would be offered to potential buyers through e-auction.
The seized properties of loan defaulters are spread over Delhi, Mumbai, Kolkata, Chennai, Secunderabad, Pune, Bengaluru, Ahmedabad, Lucknow, Aurangabad, Bhubaneswar, Indore, Kochi, Nagpur, Patna, Cuttack, Hyderabad, Vadodara, Varanasi, Siliguri, Raipur, Allahabad, Burdwan, Kanpur, and Ludhiana. The three platforms conducting the e-auction are Magicbricks.com, e-Procurement Technologies and C1 India.
“We go for auctions on a regular basis, but this would be the first time that we are doing such a large auction on a national level,” said Parveen Kumar Malhotra, Deputy Managing Director and Group Executive, stressed asset management group of SBI. He said the properties would be available at a discount of 10 per cent on the prevailing market rates. SBI has now Rs.60,000-crore ($10 billion) worth of bad debts.
At a recent meeting senior officials discussed ways of dealing with the problem of rising NPAs.
