New Delhi: State Bank of India (SBI) sold about 23% of the 479 properties on offer in its second mega electronic auction held on 12 June.

“SBI was able to sell 110 properties valuing 145 crore. Out of the 110 properties sold, 75 were residential and the remaining commercial," said an SBI official, who did not want to be named.

Of the 479 properties, which were valued at around 1,261 crore, 250 were residential properties. The auction was concluded online through three e-auction websites—Magicbricks.com, e-Procurement Technologies Ltd and C1 India Pvt. Ltd.

This was the second such auction this year. In its first e-auction of properties in March this year, 350 properties with a value of 1,100-1,200 crore were available for auction. Out of that, SBI sold only 124 properties valued at 90-100 crore.

Most of the properties that the bank sold in both the auctions were residential. “We plan to carry out more such mega e-auction in the following quarters," said the SBI official quoted earlier.

The properties that banks are putting on auction are seized by the bank under the Security and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002. According to the Act, if borrowers fail to repay their home loans, or other loans, banks can go for auction of the mortgaged properties (residential and commercial) to recover the outstanding loan amount.

Close