Nabard to inspect MSC Bank's balance sheet for 2010-11

The National Bank for Agriculture and Rural Development (Nabard) would soon begin inspecting the balance sheet of the Maharashtra State Cooperative Bank (MSC Bank) for the 2010-11 financial year, although the statutory auditors, Batliboi & Co, had completed their exercise.

The state government had last month superseded a 44-member of the board of directors of the following an advice by the Reserve Bank of India (RBI) to do so after had pointed out several procedural lapses in its inspection report for the bank’s balance sheet for 2009-10.

“The bank is currently under administrative rule. The department has already asked the bank’s statutory auditors to complete audit of the balance sheet for 2010-11 by end of June instead of July 15. Nabard, in the meanwhile, will start inspection of the same balance sheet without waiting for the statutory auditors’ report. will also incorporate its observation once the statutory auditors submit its report,” a state cooperation department official, who did not want to be quoted, told Business Standard.

The simultaneous exercise by and statutory auditors were expected to save time and would pave the way for putting in place the revival strategy being formulated by the administrators, the official said.

The inspection of the balance sheet for 2010-11 is crucial as has claimed an operative profit of Rs 15.82 crore against a loss of Rs 775.98 crore in 2009-10. Besides, the net interest margin has increased to Rs 243.30 crore in 2010-11 from Rs 100.15 crore in 2009-10, its net worth turned positive to Rs 238.14 crore from a deficit of Rs 144.22 crore.

also claimed that its capital funds risk weighted assets (CRAR) ratio also turned positive at 3.84 per cent from a minus 1.5 per cent. The bank has noted that the government has given Rs 270 crore against a total guarantee of Rs 1,600 crore. The bank, in its balance sheet for 2010-11, had reported that if the state government extended further assistance of Rs 200 crore, its CRAR would be further improved and it would pave way for seeking the banking licence.

sources declined to comment.

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Business Standard

Nabard to inspect MSC Bank's balance sheet for 2010-11

Sanjay Jog  |  Mumbai 

The National Bank for Agriculture and Rural Development (Nabard) would soon begin inspecting the balance sheet of the Maharashtra State Cooperative Bank (MSC Bank) for the 2010-11 financial year, although the statutory auditors, Batliboi & Co, had completed their exercise.

The state government had last month superseded a 44-member of the board of directors of the following an advice by the Reserve Bank of India (RBI) to do so after had pointed out several procedural lapses in its inspection report for the bank’s balance sheet for 2009-10.

“The bank is currently under administrative rule. The department has already asked the bank’s statutory auditors to complete audit of the balance sheet for 2010-11 by end of June instead of July 15. Nabard, in the meanwhile, will start inspection of the same balance sheet without waiting for the statutory auditors’ report. will also incorporate its observation once the statutory auditors submit its report,” a state cooperation department official, who did not want to be quoted, told Business Standard.

The simultaneous exercise by and statutory auditors were expected to save time and would pave the way for putting in place the revival strategy being formulated by the administrators, the official said.

The inspection of the balance sheet for 2010-11 is crucial as has claimed an operative profit of Rs 15.82 crore against a loss of Rs 775.98 crore in 2009-10. Besides, the net interest margin has increased to Rs 243.30 crore in 2010-11 from Rs 100.15 crore in 2009-10, its net worth turned positive to Rs 238.14 crore from a deficit of Rs 144.22 crore.

also claimed that its capital funds risk weighted assets (CRAR) ratio also turned positive at 3.84 per cent from a minus 1.5 per cent. The bank has noted that the government has given Rs 270 crore against a total guarantee of Rs 1,600 crore. The bank, in its balance sheet for 2010-11, had reported that if the state government extended further assistance of Rs 200 crore, its CRAR would be further improved and it would pave way for seeking the banking licence.

sources declined to comment.

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Nabard to inspect MSC Bank's balance sheet for 2010-11

The National Bank for Agriculture and Rural Development (Nabard) would soon begin inspecting the balance sheet of the Maharashtra State Cooperative Bank (MSC Bank) for the 2010-11 financial year, although the statutory auditors, Batliboi & Co, had completed their exercise.

The National Bank for Agriculture and Rural Development (Nabard) would soon begin inspecting the balance sheet of the Maharashtra State Cooperative Bank (MSC Bank) for the 2010-11 financial year, although the statutory auditors, Batliboi & Co, had completed their exercise.

The state government had last month superseded a 44-member of the board of directors of the following an advice by the Reserve Bank of India (RBI) to do so after had pointed out several procedural lapses in its inspection report for the bank’s balance sheet for 2009-10.

“The bank is currently under administrative rule. The department has already asked the bank’s statutory auditors to complete audit of the balance sheet for 2010-11 by end of June instead of July 15. Nabard, in the meanwhile, will start inspection of the same balance sheet without waiting for the statutory auditors’ report. will also incorporate its observation once the statutory auditors submit its report,” a state cooperation department official, who did not want to be quoted, told Business Standard.

The simultaneous exercise by and statutory auditors were expected to save time and would pave the way for putting in place the revival strategy being formulated by the administrators, the official said.

The inspection of the balance sheet for 2010-11 is crucial as has claimed an operative profit of Rs 15.82 crore against a loss of Rs 775.98 crore in 2009-10. Besides, the net interest margin has increased to Rs 243.30 crore in 2010-11 from Rs 100.15 crore in 2009-10, its net worth turned positive to Rs 238.14 crore from a deficit of Rs 144.22 crore.

also claimed that its capital funds risk weighted assets (CRAR) ratio also turned positive at 3.84 per cent from a minus 1.5 per cent. The bank has noted that the government has given Rs 270 crore against a total guarantee of Rs 1,600 crore. The bank, in its balance sheet for 2010-11, had reported that if the state government extended further assistance of Rs 200 crore, its CRAR would be further improved and it would pave way for seeking the banking licence.

sources declined to comment.

image
Business Standard
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