Faridabad transport SME faces possession notice
Updated: Jan 06, 2014 04:38:14pm
Mumbai, Jan 6 (KNN) The India SME Asset Reconstruction Company Limited has come out with a possession notice for Faridabad based Bhandari Road carriers under the SARFAESI act after the borrower fails to repay its loan to the YES Bank.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, allow banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.
It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.
The YES Bank had transferred the failed loan portfolio to India SME Asset loan portfolio which is now proceeding for recovery by selling the property of the borrower.
The property of the borrower will be sold by auction. Because of the economic downturn, several firms are under financial stress with the possession notices from banks having increased.
India SME Asset Reconstruction Company, Ltd. operates as an asset reconstruction company. It focuses on non-performing assets of micro, small, and medium enterprises. The company was incorporated in 2008 and is based in Mumbai, India. India SME Asset Reconstruction Company, Ltd. operates as a subsidiary of Small Industries Development Bank of India.
Asset Reconstruction Companies (ARCs) are established under SARFAESI Act, 2002 as specialized entities for NPA resolution. These ARCs are established to acquire, manage and recover illiquid or NPAs from Banks / FIs. This process would relieve the banking system of the burden of NPAs and would allow them to focus better on their core function of financing and development of new business opportunities so as to further strengthen the economy. The ARCs would maximize recovery value with optimal costs through its innovative NPA resolution methods.
According to the RBI’s Report on Trend and Progress of Banking in India, 2012-13, banks have recovered Rs 18,500 crore through the Sarfaesi route. Also, in terms of efficiency, the Act has proved to be more effective than the debt recovery tribunals (DRTs) or mediation by Lok Adalats, according to media report. (KNN Bureau)
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, allow banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.
It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.
The YES Bank had transferred the failed loan portfolio to India SME Asset loan portfolio which is now proceeding for recovery by selling the property of the borrower.
The property of the borrower will be sold by auction. Because of the economic downturn, several firms are under financial stress with the possession notices from banks having increased.
India SME Asset Reconstruction Company, Ltd. operates as an asset reconstruction company. It focuses on non-performing assets of micro, small, and medium enterprises. The company was incorporated in 2008 and is based in Mumbai, India. India SME Asset Reconstruction Company, Ltd. operates as a subsidiary of Small Industries Development Bank of India.
Asset Reconstruction Companies (ARCs) are established under SARFAESI Act, 2002 as specialized entities for NPA resolution. These ARCs are established to acquire, manage and recover illiquid or NPAs from Banks / FIs. This process would relieve the banking system of the burden of NPAs and would allow them to focus better on their core function of financing and development of new business opportunities so as to further strengthen the economy. The ARCs would maximize recovery value with optimal costs through its innovative NPA resolution methods.
According to the RBI’s Report on Trend and Progress of Banking in India, 2012-13, banks have recovered Rs 18,500 crore through the Sarfaesi route. Also, in terms of efficiency, the Act has proved to be more effective than the debt recovery tribunals (DRTs) or mediation by Lok Adalats, according to media report. (KNN Bureau)
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