In recent days and weeks Punjab National Banks, United Bank of India and State Bank of India all have posted weak financial results. SBI’s total provisioning of non-performing assets jumped up by 23 per cent to Rs 3,428.59 crore during the third quarter of the fiscal, as against Rs 2,766.18 crore a year ago. Gross NPAs, rose to 5.73 per cent in the quarter, as against 5.30 per cent a year ago.
Bulk of these NPAs comes from middle corporate and SME segment. Banks have been focusing and streamlining their processes to better manage the loans turning into bad loans. SBI has said to create zones (North, South, West and East) to own these NPAs and manage the stress recovery process independently. They have also shown interest in innovating and experimenting with new methods to find some success. SBI has also created several committees, which will be focusing on the loans, which show early signs of any possibility to turning to NPAs. SBI has created the structure of who will look for what sizes of NPAs. All these activities will provide better focus and quicker responses towards NPA management.
Banks use e-auctions from companies like https://www.bankeauctions.com/
To take care of this problem on lack of awareness of availability of NPA Business opportunities, indiabizforsale.com has now recently introduced a new service called NPA promotion. They provide proprietary online promotional methods to drum up interest from investors for these NPAs. They also use social media like LinkedIn, Facebook, Twitter, Pinterest for achieving good awareness on such opportunities. Once they get details of NPAs, they work out promotional plan for that NPA and they start promoting that to their own network of business brokers and consultants, reach out to new investors through their monthly newsletter and social media promotions. Once they generate the interest, these leads are forwarded to that particular bank’s circle manager, who in turn provides further details of that NPA to the interested investors, after which they are directed towards e-auctions for a transparent bidding process.