With the number of non performing assets increasing day by day, every major bank in India is facing a lot of pressure with the Central Bank’s guidelines to clear the NPAs by next march. Though various companies like ARMS, ARCIL already exist & doing their best to clear the npas of various banks since many years in India, no much change has been seen as the number keeps increasing due to various reasons such as slow increase in the market, higher interest rates, high brokerage charges processing fees taxes etc. Apart from all these genuine reasons, wrong valuations make it more difficult to clear these npas as the loan amount would be much higher than the actual market price and all the expenses incurred in every attempt made by the banks to clear these npas are also added to the cost price of such properties. Last but not least India is the land of sentiments and behind every NPA there is a sad story of lost dreams of a dream home, however by recovering the npas of some big players like SAHARA can change the game HDFC Realty has been involved in selling distressed assets before. Earlier this year, the Securities and Exchange Board of India appointed the consultancy and SBI Capital Markets Ltd. to sell properties owned by financier Subrata Roy, who was imprisoned in early 2014 for allegedly defrauding investors. Roy is currently out on parole.The value of Indian real estate posted as collateral for problem loans could be worth Rs3 trillion ($45 billion), according to a unit of India’s largest mortgage lender.HDFC Realty has been approached to sell such property assets by three banks seeking to recover some of their soured loans, said Chief Executive Officer Vikram Goel. He declined to identify the lenders or give the value of the assets they’re seeking to unload.
