AuctionBazaar.com: Lubricating the NPA Disposal Process

In 2020, Mr. Ramachandra Rao founded AuctionBazaar.com, a platform for connecting interested buyers to Non-Performing Assets (NPAs) of a bank. Banks faced a difficult situation when a loan asset turned into an NPA. They were responsible to dispose of NPAs; however, they did not have the expertise to do so. Property disposal involved a lot of procedures like procuring relevant documents, ensuring that the property is in saleable condition, and finding potential buyers who might be interested in the property. These procedures had to be done in a completely transparent manner, else they risked litigation. On the other hand, buyers were interested in NPA properties as they were generally offered at a discount. However, the extensive documentation, the likely hidden costs and the uncertainties around the disposal process deterred them from coming forward.

AuctionBazaar.com® was founded to help banks dispose of NPA properties while helping buyers navigate through the disposal process. In the three years of the company’s operations, Mr. Rao had developed a footing in the market and established relationships with over 20 leading banks and a large real estate agency. He now had to develop an appropriate business strategy to convert the strong foundation into business growth.