NPAsource.com, a first of its kind portal focusing on resolution of stressed assets, aims to undertake over Rs 600 crore worth of e-auctions of various banks’ non-performing assets in 2013-14.
The portal is already empanelled with 9 banks for conducting e-auctions of their NPAs: 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. It plans to tie up with more PSU as well as private sector banks in the coming months, D.K. Jain, Chairman and Managing Director of Atishya Technologies Pvt Ltd, promoter of the portal, said here on Wednesday.
The portal started its e-auction service in early 2013 after the Ministry of Finance made it mandatory for all commercial banks to move from physical auctions to e-auction mode for all cases of non-performing assets under the Debt Recovery Tribunal.
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.
He said the portal has recently received risk capital funding from the Small Industries Development Bank of India (SIDBI). “The detailed assessment undertaken by SIDBI before clearing the funding goes to show the credibility of the company and the potential for growth possible by NPAsource.com through e-auctions and its various other services for resolving bad debts of various banks.”
Growth in e-auctions is likely to become strong as bad assets of banks have grown significantly. Gross NPAs of public sector banks rose to Rs 1.76 lakh crore as on June 30, 2013 from Rs 1.55 lakh crore as on March 31, 2013.