Federal Bank ties up with Magicbricks to recover dues from 30 big accounts

Private sector lender Federal Bank has tied up with online real estate platform Magicbricks for listing and e-auctioning of immovable properties repossessed by it in recovery proceedings. The move is aimed at speedy recovery of the bank's impaired assets, while helping customers get the best rate in the market for their properties, Federal Bank said.

The lender has got into a pan-India arrangement with the housing portal in order to recover dues in 30 major accounts amounting to Rs 50 crore in the fourth quarter of this year. Under the deal, Federal Bank will leverage on Magicbrick's reach across demographic profiles and consumer categories, removing any geographical restrictions for buyers, it added.

Sudhir Pai, CEO, Magicbricks, said its e-auction platform has, during the past two years, evolved as a cost-effective way for banks to liquidate their re-possessed assets and lessen their financial burden. Public sector firm Indian Overseas Bank had earlier tied up with the company for its repossessed properties worth around Rs 800 crore.