Axis Bank ties up with Bahrain's bank for remittance

Any person having an account with Ahli United Bank would be able to wire money to a bank account holder in India using the Internet banking platform

Mumbai: India's third largest private sector lender Axis Bank on Monday said it partnered with Bahrain's Ahli United Bank for inward remittances, reports PTI.

Under the tie-up, any person having an account with Ahli United Bank would be able to wire money to a bank account holder in India using the Internet banking platform, Axis Bank said in a release.

If the beneficiary account holder is an Axis customer, the amount will be credited the same day but if the account is in any other bank branch covered under the NEFT network, it can take up to two days, it said.

Customers can initiate transactions of up to BHD 5,000 a day using the service at present, it added.



Economy & Nation Exclusive
Maharashtra State Co-Op Bank omits key information from its annual report

The Maharashtra State Co-Operative Bank has left out the Audit Memorandum and the annexure from its 2011 Annual Report which has left the stakeholders in the dark about its true condition

A close look at last year’s annual report of Maharashtra State Co-Operative Bank (MSCB) reveals that important pages are missing from the auditor’s report—namely the Audit Memorandum and annexure (Part A, B and C). This is how companies hide crucial information from the stakeholders and keeps them in the dark. Obtaining even a single piece of information, the stakeholder is made to run from pillar to post, as always.

According to Page 54 of the 2011 MSCB Annual Report, the auditors, Batliboi & Purohit had mentioned;

“In our opinion and to the best of our information and according to explanations given to us, the said accounts, read together with the Significant Accounting Policies in schedule No XI and Notes forming part of accounts in schedule No XII and our Comments and Observations in the Audit Memorandum (Part A, B and C) of the even date, gives the information required by the Maharashtra Co-operative Societies Act, 1960 the Rules 1961 made there under and Banking Regulation Act, 1949 (as applicable to Co-operative Bank), in the manner so required, give a true and fair view.”

attempt to locate the Audit Memorandum or its comments and observations, especially Part A, B and C (the annexure) of the memorandum, which is material and important for stakeholders and depositors, drew a blank.

We sent an email was sent to Batliboi & Purohit’s partner, Raman Hangekar, who signed off the Audit Report, requesting copies of the same. However, he sent a terse reply that said, “Please refer to Maharashtra State Cooperative Bank”. That’s right—a one liner. Thereafter, a mail and letter was sent to MSCB requesting the same. No email reply has been received so far.

We are now in the process of writing to the Institute of Chartered Accountants of India (ICAI), the body that regulates the accounting profession, to take action and ensure that MSCB’s Audit Memorandum and its annexures are duly disclosed.

Moneylife had earlier written a piece on Maharashtra State Co-Operative Bank  and cited that it was in deep financial trouble due to its suspicious loan distribution to some of its favoured co-operative banks as well as some loss-making sugar co-operative factories. The very next year, a press note was issued, from its administrators, stating, “The liquidity position of the bank is adequate to meet its demands towards deposits.” This is despite its negative net worth of Rs144.22 crore for the 2009-10 fiscal.

In the 2010-11 fiscal, according to the annual report, it is pertinent to note that the company was imposed a penalty of Rs5 lakh, for non-compliance of Reserve Bank of India (RBI) directions issued u/s 35A of the Banking Regulation Act, 1949 (The Act). According to Section 35A of the Act, it gives RBI the powers to give directions to a bank, in the interest of depositors and to safeguard their interests.

Furthermore several deviations were noted in the annual report and stated in verbatim, below:

1) Deferred Tax Asset of Rs112.92 crore has been accounted in the books of account based on the management representation that sufficient future taxable income will be generated against which deferred tax asset will be adjusted.
2) As per AS-22, “Accounting for Taxes on Income”, the deferred tax asset of Rs112.92 crore has been accounted in the books of accounts. The bank does not have deferred tax liability but an amount of Rs56.16 crore has been shown as deferred tax liability under the head of other liabilities due to wrong accounting which should have been transferred to the reserves. Accordingly, other liabilities have been overstated and reserve fund and other reserves understate to that extent.
3) The balance sheet shows NPA (non-performing assets) interest receivable of Rs542.55 crore up to 2007 under the head interest receivable account instead of non-performing interest receivable account (as per contra). Therefore NPA interest receivable account is understated and interest receivable account is overstated to that extent.
4) The paid up capital shows 20 shares of Rs50 each, which is not in commensurate with the authorised capital of Rs1,000 per share, and the capital is not shown correctly to that extent.
5) The bank has not complied with Accounting Standard-3, “Cash-Flow Statements”, Accounting Standard-17, “Segment Reporting” and Accounting Standard-19, “Leases” issued by ICAI.

Given the above irregularities, as well as its past reputation, the bank could be holding back crucial information that could be materially adverse for depositors and stakeholders alike. Will ICAI take action? Will the stakeholders get the information they seek?



nagesh kini

4 years ago

I doubt if there is any improvement at all since you last wrote. It'll have only worsened.
Suggest mail your report and readers' comments to MSCB HO, RBI and ICAI asking for their views.

Rahul Shivshankar

4 years ago

Hi want to know If one can file a RTI at ICAI seeking information on a Particular Certification of a Audit Report of a Balance Sheet , and If the ICAI can confirm there has no error in the Balance Sheet and Profit of Accounts as per the SEBI and ICAI Guidlines


nagesh kini

In Reply to Rahul Shivshankar 4 years ago

Yes, I think so!

Nagesh Kini

4 years ago

The Statutory Auditors of the bank need to explain why they have attested the Accounts by saying that "the said accounts... give a true and fair view" despite the adverse notes and qualifications i to v which are mandatorily required to be quantified and the total impact also stated in the same audit report.
Will the ICAI wake up let the stakeholders know what steps it has taken for violations?

Sensex, Nifty headed higher: Monday Closing Report

Nifty has to sustain itself above today's low and also  4,860 for it to reach 5,040 and then to 5,100

The market settled higher as the rupee strengthened against the dollar and on firm cues from the global arena. The Nifty for the third day in a row made a higher high and higher low. The high of 4,995 and low of 4,931 on the index was the highest high and highest low since 10 May 2012. If the index is able to sustain itself above the support of 4,860, it touch 5,040 and then 5,100. The National Stock Exchange (NSE) saw a volume of 45 crore shares, the lowest since 5 March 2012.

The market witnessed a gap up opening on firm cues from its Asian peers, which were in the positive in morning trade on easing of worries that Greece might exit the Eurozone. The gains in the rupee against the US greenback also supported the sentiments. The Nifty opened 12 points up at 4,932 and the Sensex rose 72 points to resume trade at 16,290.

The indices touched their intraday lows in initial trade itself with the Nifty at 4,931 and the Sensex falling to 16,273. Brushing aside the initial hiccups, the market embarked on a northward journey in subsequent trade.

Meanwhile, oil minister S Jaipal Reddy informed reporters that the government was not considering hike in diesel, kerosene and domestic cooking gas at the moment. The minister made the announcement after a meeting called by finance minister Pranab Mukherjee to discus the impact of the fuel price hike on inflation. While the move is seen as an attempt to placate political parties, it is expected to increase the subsidy burden.

The optimism in the benchmarks, which were in the positive since the opening bell, saw all sectoral gauges trading in the green. The market pared a small part of its gains in the noon session, but across-the-board buying and a positive opening of the key European markets kept the indices on a higher trajectory.

The indices hit their intraday highs in the closing minutes of trade. At this point, the Nifty rose to 4,995 and the Sensex scaled 16,440.

The market closed marginally off the highs with the Nifty at 4,986, up 65 points and the Sensex gaining 199 points to settle at 16,417.

The advance-decline ratio on the NSE was 1103:566.

Among the broader markets, the BSE Mid-cap index closed with a gain of 1.21% and the BSE Small-cap settled 0.87% higher.

All sectoral indices closed in the positive. They were led by BSE Bankex (up 2.42%); BSE Power (up 2.33%); BSE Consumer Durables (up 2.20%), BSE Capital Goods (up 1.85%) and BSE Auto (up 1.74%).

The top Sensex gainers were State Bank of India (up 4.76%); BHEL (up 4.17%); Tata Power (up 3.81%); Hindalco Industries (up 2.82%) and Tata Motors (up 2.69%). The main losers on the index were GAIL India (down 2.62%); ONGC (down 1.26%); Maruti Suzuki (down 1.20%); Hindustan Unilever (down 0.82%) and Jindal Steel (down 0.50%).

The top performers on the Nifty were SBI (up 4.84%); BHEL (up 4.63%); Tata Power (up 4.20%); Punjab National Bank (up 3.84%) and Sesa Goa (up 3.75%). GAIL India (down 2.71%); BPCL (down 2.24%); Maruti Suzuki (down 1.39%); ONGC (down 1.23%) and Ranbaxy Laboratories (down 1.16%) were the key losers.

Markets in Asia, with the exception of the Jakarta Composite, closed on a positive note as Greek opinion polls showed voters favouring parties supporting the European Union’s bailout, easing concern the beleaguered nation will exit the currency bloc. On the other hand, a government economist was reported saying that the China’s economic growth in the second quarter would fall below 8%.

The Shanghai Composite surged 1.19%; the Hang Seng rose 0.47%; the KLSE Composite gained 0.25%; the Nikkei 225 added 0.15%; the Straits Times climbed 0.52% and the Taiwan Weighted was up 0.91%. The KOSPI Composite was closed for trade today.

At the time of writing, the key European markets were trading with gains of 0.44% to 0.84% and the US futures were in the positive.

Back home, foreign institutional investors were net sellers of stocks totalling Rs623.76 crore whereas domestic institutional investors were net buyers of shares amounting to Rs434.65 crore.

India’s third largest private sector lender Axis Bank today tied up with Bahrain’s Ahli United Bank for inward remittances. Under the tie-up, any person having an account with Ahli United Bank would be able to wire money to a bank account holder in India using the Internet banking platform, Axis Bank said in a release. The stock jumped 3.15% to close at Rs1,031.90 on the NSE.

Manganese Ore India (MOIL), the country’s largest manganese miner has received the board’s approval for project of sinking of high speed vertical shaft at its Balaghat Mine. The production is expected to increase from 450,000 tonnes per annum to 800,000 tonnes per annum, through the project. The production is expected to increase gradually from the year 2015-16. The stock rose 1.22% to close at Rs273 on the NSE.

Gujarat NRE Coke has entered into an option off-take agreement of over 10 years with Jindal Steel & Power, for a total annual off-take of 500,000 MTPA of Run of Mine (ROM) coal with the option for additional quality of 500,000 MTPA at benchmark linked price. Gujarat NRE gained 2.35% to close at Rs17.40 on the NSE.


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