IOB ties up with Magicbricks to recover Rs 800 cr by selling re-possessed assets

Indian Overseas Bank plans to recover dues worth over Rs 800 crore by e-auctioning re-possessed properties through a tie-up with realty portal Magicbricks.

The auction will take place in two phases beginning October 21 and on October 30.

The properties spread across 12 cities are to be auctioned.

"Indian Overseas Bank (IOB)has signed up withMagicbricks forthee-auction of500 plus re-possessed properties worth more than Rs 800 crore," the bank said in a release.

Indian Overseas Bank said that out ofthe 500 plus properties, majorityare in Chennai and Coimbatore, rest are located across Mumbai, Pune, Nagpur, Kolkata, Ranchi, Meerut, Lucknow, Ludhiana, Hyderabad and Bhopal.

Property seekers need to log ontoauctions.magicbricks.com/bank/event/IOBto register for the e-auction and can participate by depositing the earnest money with their nearest IOB branch.

"Online platforms have emerged as key driver for the real estate industry. The property buying process is now significantly impacted by digital engagement. With growing internet penetration, trend towards e-auctions of properties has picked up speed in India.

"We look forward to the success of this mega e-auction," said K Swaminathan, Indian Overseas Bank's Executive Director.

Sudhir Pai, CEO, Magicbricks, said: "Over the last couple of years, we have witnessed significant success on our e-auction platform. Ever since the launch, more than 1,300 re-possessed assets owned by banks have been auctioned through our platform".

The latest association with IOB yet again validates the reach and scale of company's e-auction platform. The platform has helped PSU banks liquidate their re-possessed assets in an effective manner thereby reducing physical infrastructure or manpower and lessening their financial burden, Pai said.

Re-possessed properties are those assets that were mortgaged and attached by the lender in cases where borrower failed to repay the loan.