India's largest lender, State Bank of India (SBI) has tied up with Shriram Automall India Ltd, a subsidiary of Shriram Transport Finance Company, for helping the latter with post-seizure, warehousing and sale of seized tractors by conducting organized public sale.
State Bank of India said in a statement that the tie-up would help the company in better price recovery of impaired assets in the form of tractor loans, as Shriram Automall will offer complete solution through more than 65 auto malls.
The auto mall will offer a common meeting platform for potential buyers and sellers where the valuation of the vehicle will be determined through a very transparent process.
State Bank of India said, "It is expected that a large number of non-performing tractor loan accounts would be addressed through this tie-up in the coming months. Apart from ensuring optimum recovery from the sale of old tractors, this tie-up is expected to create a market for pre-used tractors also where SBI may explore lending opportunities".