WHAT IS PARATE EXECUTION?

Parate execution is a procedure special to banks, which allows the resale of property mortgaged to
the bank without going through legal proceedings and the bank itself is given the power to hold an
auction for the sale of the property by the appointed auctioneer.

Presently parate execution can be done for the facilities beyond Rs.5.00 Mn.

Procedure.

1. Prepare instruction letter to the Legal Department to proceed with Parate action.
2. Legal Department will prepare the Board paper and the resolution.
3. Serving the letter of demand for the customer informing that action would be taken to auction
the mortgaged property if he/she fails to settle the debt within 14 days from the letter.
4. Adoption of the board resolution and send it to Legal officer after obtaining the signature of
the company’s secretary.
5. Serve the notice of parate resolution on the borrower.
6. Parate resolution needs to be advertised in the Government Gazette and in news of all three
languages.
7. Make the decision to proceed with the auction if the borrower has not responded.
8. Obtain a fresh valuation if the existing valuation exceeds 02 years.
9. Obtain a report from the closest branch which the mortgaged property is located on the
condition and salability of the property.
10. Give the instruction to the auctioneer to proceed with the auction.

INFECTION RATIO

Growth of net non performing advances in comparison to the last year net advances.

Growth of Net NPA

Net Advances last year

Total Net NPA/Advances = Gross NPA/Advances - (Interest/Tax in suspense+ Interest in

Suspense Current loans +Interest in Suspense leases)