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State Bank of India (SBI), which has received a muted response to its 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 previous two online auctions conducted in March and June, which was an industry first, the bank successfully sold distressed residential properties, but failed to sell commercial properties in sizable numbers.
At both online auctions, the bank 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 P K 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," Malhotra added.
For instance, he said if the property on the block is an industrial plot then the bidder wants to know the legal status of the plot, facilities like availability of water, electricity and approach roads.
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 preparing a special website which will furnish all such details of distressed commercial properties in future auctions.
Malhotra said he hopes the website will be ready before the December quarter online auction. It will serve as a good source of information for bidders who are interested in commercial properties.
The bank has fixed the second Friday of the third month of every quarter to auction distressed assets and have conducted two such auctions so far.
