subject: Auction Portal, Non Performing Assets Resolutions [print this page] Atishya Technologies PvtAtishya Technologies Pvt. Ltd. is investing a total of Rs. 10 crore in its new portal, NPA Source, which is the first of its kind initiative globally to manage and resolve non-performing assets (NPAs) in India (later globally) so as to benefit lenders, borrowers as well as investors.
Total NPAs in India as of March 31, 2011 were Rs. _________ crore, while globally this figure would run into billions of dollars. World over, the scenario for NPAs is bleak as it faces multiple pitfalls: database are scattered and inadequate, they are not updated periodically, there is inadequate realisation from intrinsic worth of NPAs, lack of visibility and transparency for all stakeholders as well as no access facility of data on NPA for use by prospective investors or buyers.
Elaborating on the plans for this first of its kind portal, Mr. Devendra Jain, Chairman & MD of Atishya Technologies, said, NPA Source is an exclusive portal bridging the gap between the buyers and the sellers of non-performing assets (NPAs) for the first time in India. The portal is designed to facilitate the best deals for disposal of NPAs by updating all the details of available assets in the Indian market. We will be investing Rs. 10 crore in this portal. In the first four months of operations the portal has managed to get Rs. 1000 crore worth of NPAs on track for resolution. We plan to resolve Rs. 20,000 crore plus NPAs over the next two years.
The distribution of NPAs in the system follows the 80:20 rule whereby 20% by number of borrowers are responsible for 80% of value of impaired assets and vice versa. The large impaired assets comprise industrial assets having good restructuring potential. Our experience shows in value terms that more than 60% of the impaired assets are willing to be restructured or sold as going concerns. The small assets, however, have to be put through a recovery process, where the collateral based financing practice followed by the banking system offers a fair recovery potential added Mr. Jain.
Through our Dubai office, which will begin operations in March, we plan to tie-up with foreign investors globally who would be interested in purchasing impaired assets in India for themselves or for their clients world-wide. In India, we are getting registrations from various interested parties like chartered accountants, consultants, advocates and property dealers apart from companies of all sizes, said Mr. Jain.
NPA Source is going to provide various value-added services. Member banks/FIs can advertise all notices related to possession & auction of properties across India on the portal through its eNPANotices. On behalf of member banks/FIs the portal will send mailers to all subscribed users to increase the probability of sale of their NPAs. The subscribed users shall include investors, borrowers and facilitators such as guarantor, creditor, regulator, various consultants, experts etc. NPA Source provides a platform for online advertisements highlighting branding & service offerings in different assortments, such as banners, scrollers & flash. More services will be launched in future.
About NPA Source:
NPA Source is a path breaking approach towards management of NPAs and their subsequent reduction, thereby unlocking tremendous values for the benefit of lenders, borrowers and investors as a whole. It provides comprehensive access on NPA data to various stakeholders.
The portal has been set up by Atishya Technologies Private Limited, part of the Atishya Group. The group is an established player in the areas of financial, commercial, marketing, corporate management, business management, loan syndication and legal consultancy on financial matters as well as preparation of techno-economic feasibility studies and project reports for corporates.
While dealing with lenders, borrowers and prospective investors in the cases concerning sick units and revival thereof, the Groups top management realised the need for creating a system that would provide access to all data related to NPAs in a transparent and efficient manner. So, the Group began to work on this concept and it resulted in the creation of NPA Source.
