STATUS OF LIVE " e - AUCTION OF PROPERTIES" BY INDIAN BANKS UNDER SARFAESI Act & DRT Act's as on 16.11.2013
|Total E - Auctions||71||782||371||48||49||11||85||1417|
|S. No.||NAME OF BANKS/ Bank Auction Domains||BankAuctions.IN||ABC Procure.com||Bank E Auctions.com||e-Auctions.IN||Matexnet.com||TenderWizard.com||NPASOURCE.com||Total for all service providers|
|1||State Bank of India||270||93||363|
|2||DRT, Hyderabad & others||366||11||24||401|
|3||Punjab National Bank||43||26||69|
|4||Oriental Bank of Commerce||8||46||54|
|6||Bank of India||20||20|
|10||Bank of Maharashtra||4||1||6||11|
|11||Central Bank of India||17||1||33||51|
|12||Bank of Baroda||3||91||94|
|13||State Bank of Hyderabad||43||9||52|
|14||Indian Overseas Bank||5||5||10|
|16||Punjab & Sind Bank||6||6|
|17||IDBI Bank Ltd.||7||1||4||12||24|
|18||Union Bank of India||3||1||4|
|19||State bank of Travancore||10||10|
|24||State Bank of Mysore||1||4||5|
|25||Karur Vysya Bank||3||3|
|28||Kotak Mahindra Bank||3||3|
One of the highlights of the BANCON held in Mumbai was the verbal assault launched on banks’ non-performing assets (NPAs) by RBI, quite clearly out of exasperation. This is a continuation of the point made forcefully by the Governor of RBI when he took over. There are actually two parts to this sordid development. The first is that NPAs have been increasing and that something has to be done by banks quite seriously. The second is the growing phenomenon of debt restructuring, which in a way can be termed an euphemism for the same, padded up to look different. In the olden days, this used to be called ever-greening when banks overlooked NPAs by giving fresh loans. Critics aver that Corporate Debt Restructuring (CDR) is similar in direction though the mechanism is different.
To begin with, let us look at the conventional definition of NPAs. Ever since the economy started slipping, companies have found it difficult to service their loans leading to NPAs’ volume increasing from 2.4% in FY11 to 3.0% in FY12 and around 3.6% in FY13. In absolute numbers, they stood at around R1.9 lakh crore in March 2013. The usual reasons are high interest rates and low corporate performance due to pressure on sales and costs resulting in inability to repay loans or service interest payments. One may assume that there is less of mala fide intent and that the ‘wilful defaulters’ category is not predominant.
The restructuring story is even more interesting. The CDR website shows that the volume of restructured debt has increased continuously, touching R2.72 lakh crore as of September 2013 from R0.9 lakh crore in FY09, and was at R2.29 lakh crore by March 2013. In terms of a ratio as a percentage of total advances, CDR was higher at 4.4%, and even traditionally this ratio has been higher than the declared gross NPA ratio.
The argument given in favour of CDR is that loans have to be restructured when the project cannot take off due to extraneous conditions. We all know that several projects are held up when the government’s policy changes
It is generally accepted that directed lending by public sector lenders is one of the major causes for rising bad loans in the banking system. Gross non-performing loans as a percentage of total advances in the priority sector is close to 5.5%; it is only about 3% for the non-priority sector.
However, given the tricky bye-laws and categories of credit management in the Indian banking system, headline numbers can be misleading. As a presentation made by Reserve Bank of India deputy governor K.C. Chakrabarty at a recent conference shows, Indian lenders have resorted to devices such as technical write-offs and restructuring loans to show a reduction in their non-performing assets.
If one looks at the impaired assets ratio, which also takes into account restructured advances and write-offs, then the asset quality is worse for the non-priority sector. The impaired assets ratio for the priority sector is about 9%, while for the non-priority sectors, it is close to 13%.
The largest beneficiaries of these largesse from lenders have been big firms. About 91% of total restructured loans on 31 March was accounted by large and medium industries. Thus, about 14% of large and medium industry loans have been recast compared with 5.8% of overall bank loans.
The deterioration in asset quality is the highest for the industries segment, and within it large and medium enterprises, a segment which accounts for nearly half of the bank credit. Sectors such as aviation and textiles are the worst offenders.
Needless to say, public sector banks are at the receiving end with their impaired assets ratio at 12.1%, more than double that of the larger private banks. On Monday, Mint published an article titled Who pays when India’s billionaires don’t go bust?
With a majority of these impaired assets being borne by public lenders, who have to repeatedly go with a begging bowl to the government for recapitalization, the answer to that question is clear: it is the taxpayer.
The real estate investments are broadly three types.
1. Self-occupied – To live peacefully and to pass on the property to future generations along with sweet memories.
2. Long term Investment – Buying the properties as a long term investment and getting rental income as pension and to keep the property for future generations.
3. Short term investment – Buying the property and after attending some minor repairs / modifications etc selling for profit.
Buying properties in Bank Auctions is an intelligent financial decision.The following are the seven steps required to buy properties in Bank Auctions / Foreclosures.
1. Read The Auction Notice / Sale Notice Carefully: Advised to take a print out of Auction notice and read the details mentioned in the advertisement carefully and note down the important aspects like contact details, inspection date, reserve price, earnest money deposit ( EMD), cost of auction forms, tender submission time & date, and finally auction date & time. All these are very important aspects for participating in the Auction and to Buy properties successfully.
2. Documents verification:
3. Inspection of the property : Visit the site of the property as per inspection schedule given in Sale notice. Consult people around the property to know the price prevailing in that area. While inspecting the property observe the present physical condition of the property, enquire about the pending property taxes, electricity dues, welfare associations maintenance dues. The property comes as is, as such any pending dues should be added to your consideration price before quoting.
4. Get your finances right:- Please make sure that you are prepared for the price to be paid for the property. If you have ready cash, you can clinch the deal faster and possess the property fast. If you are thinking of availing Bank Loan, you should first approach the bank and get sanction of pre approval loan. SBI (Home Loan PAL - Pre-Approved Limit), HDFC, Axis Bank and Kotak Mahindra Banks are sanctioning the pre-approved loans. This pre-approved loan is to complete the transaction in the specified time frame very smoothly.
5. Submission of tender: Some of the Banks / financial Institutions are selling the Bid forms / tender forms. Buy the tender forms from the specified branches duly mentioning the name of the purchaser clearly. It is important to take into account, pending dues when deciding how much to bid. Submit the bid at the specified branch before the due date and time, along with demand draft / Banker cheque as EMD ( earnest money deposit ), copies of purchasers PAN card, photo identity card and residence proof. In most of the cases the EMD amount is 10 % of the reserve price.
6. Participating in Auction: Based on the data & statistics of the foreclosure properties / bank auction properties in India, around 40 % of the Bank auction properties are unsold, due to various reason. Around 40 % properties are getting one bid only. Around 20 % properties are getting two or more bids. There is an exception to the Bank auction properties in Mumbai, where more number of bids are coming for almost all properties. Arrive early to the venue of the Auction, meet the Authorised officer and get familiarized about the auction process and participate in the Auction. You will be successful if you are the highest bidder. You need to pay another 15% on the same day of the auction.
7. Sale certificate & registration:
Source: Foreclosureindia.com & BankAuctions.IN
Dated: Oct. 31, 2013
ForeclosureIndia is Worlds No.1 free foreclosure listing service provider & BankAuctions.IN is one among the seven E auction service providers in India. Retired AGM & Retired Chief Manager of State Bank of India have joined our new team.
HYDERABAD, India -
Foreclosureindia.com – India’s one and only internet portal exclusivey listing auction properties of the banks and financial institutions, has made great progress in serving both the banks and public. It is Worlds No. 1 free foreclosure listing service provider and their another portal BankAuctions.IN is one among the seven E auction service providers in India. State Bank of Hyderabad, Eluru Regional office has certified that their services of E Publicity & conducting E Auctions are Excellent and Central Bank of India, Visakhapatnam has certified that their services are commendable.
Based on the research made during the last four years on non performing assets and its disposal trends, it found very interesting aspect / game changing aspect on disposal of non performing assets. It has roped in senior State Bank of India AGM & Chief Manager for fine tuning the research finding and to develop and implement the ideas in innovative ways. The whole idea is to disseminate various kinds of NPAs and bring back the funds into the banking system to improve the economy at macro level lest these huge NPAs will be a drag forever.
Sri S S H Satyanarayana, retired Asst. General Manager of SBI, worked in Banking Operations, Credit Appraisal, Project Appraisal and Audit. He is a Specialist in Credit & Operational Risk Management and was instrumental in implementing Risk Management policies at all-India level across SBI. As Regional Manager, he studied the concept of Assets leading to NPA status and led his team from front in reducing NPAs and earned accolades from Top Management. He has joined our team as Chief General Manager.
Sri Babu Rao, retired Chief Manager, SBI, worked in Banking Operations, Inspection & Audit. He has joined our team as General Manager. These two senior officers supported by another three member team is formed to work on a special assignment to develop, & implement the research findings on disposal of non-performing assets of Banks including restructuring/ rehabilitation of NPAs and , one time settlement of NPA’s.
As per the “ Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances of Reserve Bank of India” Restructuring of advances could take place in the following stages:
(a) before commencement of commercial production / operation;
(b) after commencement of commercial production / operation but before the asset has been classified as
(c) after commencement of commercial production / operation and the asset has been classified as
‘sub-standard’ or ‘doubtful’.
One Time Settlement can also be considered, wherever necessary, when the unit becomes unviable on
account of various factors.
The new team will focus on E Auctions, special assignments, viz. Restructuring/ Rehabilitation and OTS activities.
The website is on its way to fulfill its mission of creating a market for auction of properties in India by educating more and more people who were oblivious to the auction property market and giving them an alternative to the conventional properties.
Team foreclosureindia.com acknowledges the support being given by all the Banks and financial institutions. They wishes Happy Deepavali to all the visitors of their portals, borrowers, Investors,Officers & staff of the Banks.
PTI Sep 15, 2013
MUMBAI: Sounding an alarm of the detoriating asset quality of banks, ratings agency Crisil has said gross non-performing assets will touch 4.4 per cent and the restructured book will balloon to Rs 4 lakh crore by the end of this fiscal.
“Gross NPAs (non-performing assets) were at 3.3 per cent in March 2013 and grew to 3.7 per cent by the June quarter. We feel they will grow to 4.4 per cent by March 2014,” CRISIL Managing Director and Chief Executive Roopa Kudvasaid here over the weekend.
An NPA is a debt obligation where the borrower has not paid the interest and principal repayments to the lender for an extended period of time. Corporate Debt Restructuring (CDR) allows the reorganisation of a company’s outstanding obligations.
Kudva said restructured assets, under which an account’s repayment period is extended or interest payment delayed without classifying it as an NPA, will touch Rs 4 lakh crore this fiscal, up from the Rs 3.1 lakh crore in March, 2013.
“The system will add up to Rs 1 trillion (lakh crore) of restructured assets during the fiscal and considering some assets will be reclassified during the fiscal, we feel the total component will touch Rs 4 trillion by March 2014,” Kudva said.
In its annual report released last month, the Reserve Bank of India (RBI) had said the gross NPAs in the system will touch 4.4 per cent by the end of the fiscal.
“Our stress tests suggest that under a severe stress scenario, the gross NPA ratio of banks may rise to 4.4 per cent by March 2014 but even under such a scenario the system level capital adequacy ratio of banks will be 12.2 per cent only, which is well above the required 9 per cent,” the RBI report had said.
One of the most important reasons for the rise in the asset quality stress is the economic gloom. The state-run banks have one of the most dismal records on this front, with some reporting gross NPAs of over 6 per cent.
There is also a concerted effort from the Finance Ministry to check the phenomenon of “wilful defaulters” to prevent assets slipping into the bad category.
M Allirajan & Aparna Ramalingam, TNN | Aug 24, 2013,
Gross non-performing assets (NPAs) have increased sharply in public sector banks (PSBs) in the first quarter of the current financial year as a rapidly slowing economy is resulting in a quantum leap in bad loans. Gross NPAs as a percentage of advances stood at a two-and-half year high in several leading PSBs in the April-June quarter. State Bank of India (SBI), the country’s largest lender, topped the list of banks with the highest gross NPAs (in percentage terms) during the quarter among BSE-Bankex constituents.
The gross NPA to advances for SBI, which has seen a steady increase in bad loans, surged to 5.56% in April-June, the highest since the quarter ending March 2011. Gross NPAs have increased 81 basis points (0.81%) for SBI during the quarter, data with the Centre for Monitoring Indian Economy(CMIE) showed. “The rise of bad loans is across the board. The growth has lowered,manufacturing sector is not doing that well and interest rates are going up instead of moving down. In such an environment, NPAs will only move up,” Vaibhav Agrawal, vice president,Angel Broking said.
Gross NPA to advances surged to the highest in 10 quarters for Bank of Baroda, Canara Bankand Punjab National Bank. Incidentally, global ratings agency Moody’s downgraded the bankfinance strength ratings of Bank of Baroda, Canara Bank and Union Bank of India on August 16. Moody’s says PSBs would find it difficult to respond to slower economic growth, deteriorating asset quality and declining profit margins. Bank of Baroda whose gross NPA stood at 2.99% at the end of the first quarter of FY14 said in an analyst call that the bank has “significantly strengthened its credit monitoring process for early detection of stress accounts .” In terms of sequential movement (from fourth quarter of FY13 to first quarter of FY14) of gross NPAs for Bank of Baroda, the share of agriculture was highest at 5.29% during the period ended June 30 as against 4.9% during the fourth quarter of FY 13. Large and medium enterprises stood second with a gross NPA ratio of 5.06% on June 30 as against 3.29% during March end. Interestingly, private sector banks have not seen much deterioration in asset quality and have managed to maintain their NPAs at low levels. HDFC Bank, Axis Bank and IndusInd Bank are maintaining their gross NPAs to advances at 1% levels for the past several quarters. ICICI Bank’s gross NPAs had increased to a high of 4.47% in the quarter ending March 2011. But the bank has steadily brought it down to 3.23% in April-June, CMIE data showed. “That is because these institutions have better credit standards when compared to their nationalized counterparts,” Agrawal said. Even south-based banks have not been spared from the NPA blues.
In the case of Indian Bank, gross NPA levels showed a rise and stood at Rs 3,723 crore as on the first quarter of FY14 while it stood at Rs 1,554 crore as on June of last year. Net NPAs also rose during the same period to Rs 2,486 crore as compared to Rs 963 crore during the same period in 2012. During the period, the bank restructured accounts in the discom sector to the tune of Rs 35.01 crore. “We have contained our net NPA ratio at 2.3%. We have recovery strategy and action plan for the year wherein we are meeting up with the top 50 NPA borrowers every weekend to see which accounts can be upgraded and initiating recovery proceedings for others,” T M Bhasin, chairman and managing director, Indian Bank said.
Similarly, Indian Overseas Bank also saw its bad debts rise during the first quarter of FY14. Gross NPA rose to Rs 7,431.69 in the June 2013 quarter as against Rs 4,409.70 in the corresponding quarter last year. http://timesofindia.indiatimes.com/business/india-business/Gross-non-performing-assets-of-nationalised-banks-soar/articleshow/22015086.cms
Declining margins, rising credit costs and provisions are likely to affect the profitability of banks in fiscal year 2014, according to ICRA Research.
Downgrading the Indian banking sector will, however, depend on how the lenders fare in terms of core profitability and non-performing assets (NPAs), said Vibha Batra, senior vice-president, co-head financial sector ratings, Icra Ltd, the Indian unit of Moody’s Investors Service.
Batra expects state-run bank’s return on equity (RoE) to drop to less than 10% in the year to 31 March, down from 13.1% in the previous year, while that of private sector banks to drop to 11-12% in 2013-14 from 16.3% last fiscal. Return on equity is measured by dividing a company’s net income with shareholders’ equity.
The BSE Bankex, which includes 14 lenders, has lost 22% since April.
The report by the research firm said, “A weak macro environment, large rupee depreciation, vulnerability of a large number of infrastructure projects and the rising yields will have significant bearing on the earnings and asset quality of the banks.”
The research is based on an analysis of 26 nationalised banks and 15 private sector banks, which collectively accounting for around 90 per cent of the total credit portfolio and deposits of all commercial banks as of June 2013.
According to the report, gross non-performing assets (NPAs) ratio for public sector banks (PSBs) could rise from 4.2 per cent as on June 30, 2013 to 4.8–5 per cent as on March 31, 2014. As the NPAs of PSBs have a larger bearing on the banking system, the gross NPA ratio for banking system as a whole could further rise to 4.2- 4.4 per cent as on March 31, 2014 (3.8 per cent as on June 30, 2013).
Overall gross NPAs for all banks increased to 3.8 per cent as on June 30, 2013 from 3.3 per cent as on March 31, 2013 and 3.1 per cent as on June 30, 2012. Asset quality and earning pressures could make banks more risk averse, which could further make availability of credit scarce even if the credit demand were to pick up.
Rajeev Mehta, research analyst at India Infoline Ltd, agreed with Icra’s assessment and said this fiscal year will be one of the toughest that Indian banks will have to face “in a decade”.
“Banks credit growth is likely to slow to 12% -13% this year and because this is a stressful environment macroeconomically, banks will be wary of increasing their loan book for fear of increased risk,” he said.
“For private sector banks with large infrastructure exposures, slippages in the large accounts could increase the credit provisions and dilute the core earnings over the medium term,” ICRA said.
According to ICRA estimates, return on net worth for PSBs could drop to single digit in 2013-14 which along with low valuations could necessitate them to rely primarily on the Government to shore up capital to comply with Basel III norms or for growth.
For private sector banks, some stress is likely to build up in the commercial, retail and SME portfolio. At the same time, private sector banks with significant infrastructure exposures may see an increase in restructuring, though stress may not get reflected in NPA ratio in 2013-14.
A bulk of the public sector bank non-performing assets (NPAs), which is under the Central Bureau of Investigation scrutiny for suspected wilful misappropriation of public money running into thousands of crores, is on account of debt repayment defaults by 30 corporate majors, said CBI Director Ranjit Sinha.
‘A bulk of NPA is from top 30 accounts which is learnt to be running into thousands of crores. CBI has already initiated inquiry into some of the big defaulter accounts,’ Sinha said, The CBI, which is learnt to have come across irregularities in certain cases, is soon expected to register a preliminary enquiry for further probe.
Mr. Sinha said that according to government estimates, the gross NPAs rose substantially from Rs.59,924 crore in 2010 to Rs.1,17,262 crore in 2012.
Speaking at the fifth annual conference of chief vigilance officers of Public Sector Banks and Financial Institutions and Officers of CBI, Sinha cited number of issues which adversely affect agency’s efforts to track and recover these assets.
Highlighting issues which hamper CBI investigation into bank frauds, he said banks are often reluctant to declare bad accounts as fraud despite there being clear manifestations. The CBI Chief said the banks need to realise that delay in reporting of frauds adversely affect tracking and recovery of proceeds of crimes as the initiative is lost.
Top CBI officials said the agency’s banking probe unit has also scrutinised cases of loan restructuring, a common route taken by the defaulters to escape immediate loan repayments. As the probe advances, the investigating agency would also probe the suspected complicity of bank officials in question.
Today, the estimated gross outstanding advances are pegged at Rs.50 lakh crore, putting the restructured debt figure at roughly Rs.5 lakh crore compared to Rs.2 lakh crore as recorded four years ago.
According to an RBI analysis, CBI officials said, the number of fraud cases had shown a decreasing trend from 24,791 cases in 2009-10 to 13,293 cases in 2012-13.
Emphasising the importance of in-house vigilance, C. Rangarajan, Chairman Economic Advisory Council to the Prime Minister said both preventive vigilance and punitive vigilance were very important factors in maintaining discipline in the banking and financial sector. Those who violated procedures and rules must be appropriately punished.