Banks Eyes to E-auction Vehicles on BAANKNET to Accelerate Recoveries

Banks are considering bringing cars and other vehicles onto BAANKNET, the auction platform operated by PSB Alliance, as per The Economic Times news reports. The proposal is aimed at making vehicle auctions more streamlined and transparent. 

The platform is already being used by lenders for property auctions, and PSB Alliance is now examining whether the same system can be extended to vehicles. 

Vehicle Auctions Under Examination 

PSB Alliance Chairman Sunil Mehta said BAANKNET is being developed as a scalable platform that can accommodate more products. He said vehicle auctions are being examined as an opportunity for banks to conduct auctions faster and more effectively. 

The company has not provided a timeline for introducing vehicle auctions. The proposal is still under consideration. 

BAANKNET To Offer More Vehicle Information 

The planned expansion includes integration with the Road Transport Ministry’s VAHAN portal and RTO challan services. This would give bidders access to more information about vehicles listed for auction. 

The platform is expected to provide search options based on details such as brand, model and location. PSB Alliance believes this could help improve participation from bidders. 

₹34,000 Crore Recovered Through Property Auctions 

BAANKNET has already conducted more than 87,000 property auctions for banks and lending institutions. Since July 2024, properties worth around ₹72,000 crore have been auctioned through the platform. 

Lenders have recovered approximately ₹34,000 crore from these auctions, giving the proposed vehicle segment an existing platform to build on. 

PSB Alliance Expands Shared Services 

The Finance Ministry has asked PSB Alliance to expand its shared-service ecosystem beyond state-run banks and explore common digital lending solutions for smaller lenders. 

The company is also developing a Digital Balance Confirmation Portal, Digital Supply Chain Finance and a common collection platform for retail and MSME loans below ₹5 crore. 

Government Pushes Greater PSB Collaboration 

The government has asked public sector banks to collaborate on common utilities and share technology, operational and people capabilities.  

PSBs reported a combined net profit of ₹1.98 lakh crore in FY26, their highest ever, marking their fourth consecutive year of profitability. 

Read More: Jio-bp, DRIVN Sign MoU to Strengthen Commercial EV Charging Infrastructure! 

Conclusion 

The proposed vehicle auctions would expand BAANKNET beyond property sales. Integration with VAHAN and RTO services could give bidders better vehicle information while supporting the recovery process for lenders. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.