PDIC slates auction of P185-million GSIS Family Bank assets

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) is set to dispose next month assets of the thrift banking arm of Government Service Insurance System (GSIS) ordered closed by the Bangko Sentral ng Pilipinas (BSP) more than two years ago.

The PDIC Real and Other Properties Acquired (ROPA) disposal committee is auctioning 768 assets worth P185 million owned by GSIS Family Bank on Oct. 4.

Up for bidding are 749 residential lots as well as 19 residential lots with improvements located in Metro Manila, Bataan, Bulacan, Cavite, Marinduque, Nueva Ecija, and Tarlac.

PDIC urged interested bidders to physically inspect the properties, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and/or expenses before submitting their bids.

Bidders are required to place a bond or deposit equivalent to at least 10 percent of the submitted bid, in cash or manager’s check.

The winning bidder should pay the balance of the bid/purchase price in full within 15 calendar days from the receipt of the Certificate of Award or not later than Oct. 19.

In 2016, the BSP ordered the closure of GSIS Family Bank and placed it under the supervision of the PDIC. The shuttered bank had 22 branches including seven in the National Capital Region (NCR), 11 in Cavite, two in Laguna, and one in Bulacan.

GSIS Family Bank had 14,507 accounts with total deposit liabilities of P974.81 million. Total insured deposits amounted to P786.39 million or 80.67 percent of total deposits.

GSIS Family Bank was the result of several mergers including that of the Dragon-owned Royal Savings Bank and ComSavings Bank.

The state-run pension fund manager tried several times, but failed to privatize its stake in GSIS Family Bank due to legal hurdles. GSIS pegged the minimum offer price for its interest in the thrift bank at P501 million.

PDIC, as liquidator of closed banks, holds various asset disposal initiatives such as biddings, auctions and negotiated sale.

Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors in accordance with the rules on concurrence and preference of credits.

The disposal of assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds.