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State Bank of India (SBI) is set to auction the outlets of Loot (India) - the retail store that gained popularity few years ago for selling multi- branded apparel at 25% to 50% discount. The company has stopped paying dues amounting to Rs 43 crore to country;'s largest bank which has prompted them to auction the property. The bank has issued a notice to e-auction Loot (India) property located in Mumbai at Mahim for a reserve price of Rs 7.5 crore.
In 2010-11, Loot (India) Ltd promoted by Jay Gupta has close to 145 outlets in 82 cities which is now reduced to handful of outlets. It faced financial crunch just during the time other retail outlets like Subhiksha and Vishal Retail were forced to shut shop as their revenue did not match their expenses. Loot (India) could not tap the equities market to raise money due to difficult market conditions nor was it able to rope in a strategic investors which made it difficult for the company to fund its project.
On Wednesday, SBI said that it has has invited bids for the property for an online auction on June 12 between 12.30 pm to 1.30 pm. The outstanding dues of the company inclusive of interest and principal is close to Rs 60 crore, sources. The Mahim property, which would be first in line to be auctioned, is located on the ground floor having 360 square feet.
In March this year, SBI had put on block 300 properties of defaulting customers for online auction. These included offices, shops, factory buildings and residential apartments spread across 25 cities valuing Rs 1200 crore. The banks sold about 130 properties online realising Rs 100 crore. The bank has now decided to conduct online auctions every quarter of stressed assets.
SBI is driving hard to recover its overdues as it's gross non-performing assets (sticky loans before provisioning) has touched Rs 61,991 crore or 4.9% of total advances as on December 2014. Another, Rs 7043 crore loan slipped into the NPA basket while Rs 4092 crore loans were restructured in the December quarter, which is eating into the bank's profits.
Source : Economic Times
In 2010-11, Loot (India) Ltd promoted by Jay Gupta has close to 145 outlets in 82 cities which is now reduced to handful of outlets. It faced financial crunch just during the time other retail outlets like Subhiksha and Vishal Retail were forced to shut shop as their revenue did not match their expenses. Loot (India) could not tap the equities market to raise money due to difficult market conditions nor was it able to rope in a strategic investors which made it difficult for the company to fund its project.
On Wednesday, SBI said that it has has invited bids for the property for an online auction on June 12 between 12.30 pm to 1.30 pm. The outstanding dues of the company inclusive of interest and principal is close to Rs 60 crore, sources. The Mahim property, which would be first in line to be auctioned, is located on the ground floor having 360 square feet.
In March this year, SBI had put on block 300 properties of defaulting customers for online auction. These included offices, shops, factory buildings and residential apartments spread across 25 cities valuing Rs 1200 crore. The banks sold about 130 properties online realising Rs 100 crore. The bank has now decided to conduct online auctions every quarter of stressed assets.
SBI is driving hard to recover its overdues as it's gross non-performing assets (sticky loans before provisioning) has touched Rs 61,991 crore or 4.9% of total advances as on December 2014. Another, Rs 7043 crore loan slipped into the NPA basket while Rs 4092 crore loans were restructured in the December quarter, which is eating into the bank's profits.
Source : Economic Times
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