Country's largest private sector lender, ICICI Bank will auction pledged gold jewellery weighing 11 kg, pledged by more than 150 borrowers, who have defaulted on their payments.
The auction would be conducted by the ICICI bank's branches in Uttar Pradesh, Bihar and Uttarakhand from April 18-22, 2013 for gold jewellery deposited by about over 150 customers as collateral for their loans, the bank said in a public notice last week.
While neither the exact value of the gold ornaments being auctioned nor the outstanding loans could be ascertained, an equivalent amount of gold would be worth over Rs 3 crore at current prices.
At present, gold prices have hit a one-year low at Rs 28,350 per 10 gm.
The notice further said, "In the event any surplus amount is realised from this auction, the same will be refunded to the borrower concerned, and if there is any deficit post the auction, the balance amount shall be recovered from the borrower through appropriate legal proceedings."
The bank said the auction would take place at ICICI Bank branches in areas, including Allahabad, Meerut, Kanpur, Agra, Rudrapur, Varanasi, Dehradun, Bhagalpur and Patna.