SBI Is Hosting Mega E-auction For Properties Today, On Oct 25

Published: Monday, October 25, 2021, 13:57 [IST]

The top 2 public sector banks, the Bank of Baroda (BoB) and the State Bank of India (SBI) have organized e-auction of the properties, on October 22 and on October 25, respectively. Today the SBI is organizing the e-auction. A bank generally puts mortgaged properties on an auction at a time when the borrower defaults. Through the Indian Banks Auctions Mortgaged Properties Information (IBAPI) portal, the banks put the properties on an auction, to compensate for the loss.

SBI Is Hosting Mega E-auction For Properties Today, On Oct 25

The banks' defaults have rallied due to the Covid pandemic. Hence, the Bank of Baroda has auctioned 570 properties and the SBI is auctioning over 1000 properties. Because of the pandemic, small businesses of less than Rs. 1 crore assets were affected largely that eventually impacted the banks' NPA scales. SBI stated it is a big opportunity for investment, the same as the Bank of Baroda.

Anand Moorthy, Business Head, Data Intelligence and Asset Management, SquareYards, earlier said, "There is a notion that an auctioned property comes at a cheaper price. But there is an expectation lapse for a prospective buyer."

However, documentation of these properties is very important along with the operational issues, and the investors should be very cautious and patient. Both commercial and residential properties have been included. The process of auction and getting the property is generally quite a lengthy procedure and might take about 1 year to be finalized. Additionally, if the auctioned property is having any due regarding maintenance or tax, the investor will be liable to pay it. So the investors should be very thorough before investing. So, one should be careful about the risks involved.