According to NPAsource.com, Maharashtra, largely due to Mumbai, tops both the categories of commercial and residential NPA properties for sale
Commercial and residential properties of non-performing assets (NPAs) with banks and financial institutions worth an estimated Rs7,700 crore are up for sale across the country. According to NPAsource.com, there are around 2,200 units in the commercial category and nearly 11,000 units in the residential segment.
“As NPAs in the corporate sector continue to grow in the coming months, there will be more commercial and residential properties which will be put under the auction block by banks and financial institutions to recover their dues. A slowdown in the real estate markets across the country has further added to the woes of the lenders who will not be able to generate higher returns from the sale of mortgaged properties in the residential and commercial spaces. A positive turnaround in the realty market as well as the Indian economy may take place around May 2014 if a stable government is formed at the Centre,” said DK Jain, chairman and managing director of Atishya Technologies Ltd, which owns NPAsource.com portal.
According to NPAsource.com, Maharashtra, largely due to Mumbai, tops both the commercial and residential categories with Rs842 crore and Rs838 crore, respectively. Delhi comes next with Rs686 crore worth of NPA commercial and Rs500 crore worth of NPA residential properties.
Andhra Pradesh comes at number three in the residential properties ranking with Rs 497 crore worth of space up for sale under NPA properties to be auctioned by banks and financial institutions. Tamil Nadu, West Bengal and Uttar Pradesh are the next three states with highest value of commercial and residential NPA properties.
NPAsource.com said, the single largest commercial property in value terms is an office property at New Delhi valued at Rs200 crore at the base price. In the residential category, the single largest NPA property happens to a farm house at New Delhi with a base value of Rs40 crore. Mumbai has two NPA commercial properties with a base price value of Rs26.5 crore and Rs24.6 crore, it added.
As on 31 March 2013, net NPAs of 40 listed banks were Rs93,109 crore, which rose to Rs1.29 lakh crore as on 30 September 2013.
NPAsource.com has total NPA properties worth around Rs27,500 crore registered on its portal spread across 27,626 units. Commercial NPA properties have a 15% share in value term while residential properties have a 13% share. The biggest chunk of NPA properties fall under the industrial land and building category with a 65% plus share in value terms.
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