Smaller cities account for over 50% of e-auctions of NPA properties
11 March 2014
Electronic auctions of properties put up for sale by banks as non-performing assets have spread to tier-2 and tier-3 cities, which now account for 50 per cent of such sales.
These cities include Jabalpur, Chandrapur, Aurangabad, Bhilwara, Hubli, Dharwad, Erode, Dharmapuri, Bhavnagar, Valsad, Gandhidham, Ujjain, Kannur, Kolhapur and Satara, amongst others.
These are the trends coming out of the 500 plus NPA property e-auction transactions undertaken over the last ten months by NPAsource.com, a unique and first of its kind portal which focuses on resolution of stressed assets. NPAsource.com has total NPA properties worth around Rs 27,500 crore registered on its portal spread across 27,626 units.
''Contrary to the belief that major users of technology are from big cities mainly, we found significant participation in e-auctions of NPA properties from tier-2 & 3 cities," said DK Jain, chairman and MD of Atishya Group, releasing the trends of the 500 plus NPA property e-auction transactions undertaken by NPAsource.com over the last ten months.
Interestingly the average realisation based on the base price from smaller cities has often been higher than realisations from metros and other major cities. he says.