Due to the increasing Car loans defaults the leading bank of the country – State bank of India has decided to organize auction of cars seized from loan defaulters.
Bank has reported that car loan NPA has went up to 1%, the bank wants to bring it down to 0.25%. Every Monday and Tuesday the bank will conduct the auction near Patny centre in Secunderabad. Further the bank will issue advertisement detailing the public auction notice in the newspaper every Friday. It has been also reported that bank is planning to seize 500 cars in the coming few weeks.
As per the bank’s laid down procedure the bank is seizing the cars from the defaulters. The bank had conducted public auction of 21 such car between 17th to 21st August.