Mumbai: State Bank of India, which has received muted response for online auction of distressed commercial assets in the past, is compiling all legal and basic infrastructure related information of such properties to help bidders take an informed decision.
At the past two online auctions conducted in March and June, which was an industry first, the bank was successful in selling distressed residential properties, but failed to sell commercial properties in sizable numbers.
At both the online auctions the bank had sold around 280 properties which were largely residential properties.
"Every buyer of commercial properties wants to have far more information than what we have been giving out till now," deputy managing director in-charge of stressed assets group PK Malhotra told PTI in an interaction.
"A major issue is that people don't want any problem, when it comes to commercial properties, from the exiting owner, which he can very easily do by going to a court. So, we have to find a solution to it and we are very close to that."
For instance, Malhotra said if the property on the block is an industrial plot then the bidder wants to know legal status of the plot, the facilities like availability of water, electricity and approach roads etc.
Malhotra said in previous auctions, the bank was not able to provide such details to the bidders and therefore the tepid response.
"Now, we are trying to make a package of information which will address all of these issues. Such detailed information will also help the buyer make a comparison and can then take an informed decision," he said.
SBI is getting a special website prepared which will furnish all such details of distressed commercial properties in the future auctions.
Malhotra said he hopes before the December quarter online auction, the website will be ready and will be a good source of information for bidders who are interested in the commercial properties.
The bank has fixed the second Friday of the third month of every quarter for auctioning distressed assets and have conducted two such auctions so far.
