State Bank of India will conduct a ‘mega auction’ of assets worth R1,200 crore on March 14, chairman Arundhati Bhattacharya said on Friday.
Speaking to reporters after announcing the bank’s December quarter results, Bhattacharya said, “We have a mega auction on March 14… 300 assets are being put on auction, of which about 100 would be residential.” The auctions would be conducted through online bids and the bank has tied up with property portal magicbricks for that.
These assets would go on the block under Section 13(4) of the Sarfaesi Act that allows banks to auction-off property of a defaulting borrower. She added that 26% of the total assets on sale are written-off assets while the rest are from loans that turned bad.
The bank, for the last few quarters, has increased its efforts to recover dues from written-off accounts. In the December quarter, SBI’s recoveries from written-off accounts stood at R602 crore, up 84.7% from the same period last year.