In a bid to take on defaulters head on, the public sector banks are going all out. They are enlisting agents, auctioneers, management consultants and even non-banking finance companies (NBFCs) to help them take over the assets of defaulting corporates.
Many of these banks have already send notices to a whole lot of corporates and small-scale units under the securitisation Bill.
Once the 60-day notice period is over, if the defaulters do not come to the negotiation table, the lenders can auction the securities to recover their dues, provided 75 per cent of the secured creditors approve the move.
After sending notices to defaulters, banks are now gearing up for the second level of action in the event that they actually go in and acquire the assets of the corporates.
State Bank of India (SBI) is seeking to appoint various parties to empanel them as agents for the various duties to enable the bank to enforce their rights under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill.
The bank is looking at NBFCs, government approved auctioneers, management consultants and accounting firms. It is also looking at companies with experience in impaired asset management, merchant banks and companies which have been set up by reputed corporates, merchant banks, management consultants and NBFCs for loan recoveries.
These parties will be responsible to assist the bank in enforcement of its rights in respect of the secured assets available to the bank under various laws including the securitisation Bill.
