Banking sector needs ’Ethics in governance’

Banking sector needs ’Ethics in governance’

Mangalore Today News Network

Mangaluru, July 20, 2019: Speaking at a national seminar on ‘Banking Before and After Nationalisation,’ organised by the Department of Economics of St Aloysius College here on July 19,  Friday, Bank of Maharashtra former chairman Allen C A Pereira said that ethics in governance is the need of the hour in banking sector.

He also said in spite of regulated system and plethora of laws, there were instances where a huge amount of money lend by public sector banks and also by a few commercial banks have simply disappeared overnight.

“Laxity in governance and lack of ethics in personal life are the prime reason for economic malice affecting globally. The global meltdown of 2008 had not affected the banking sector much in India due to the measures taken by the authorities concerned. In countries like Australia, ethics in business is an integral part of training in banking career.”

Pereira said nationalisation of banking in two phases was a giant leap for the marginalised. In spite of all schemes and campaigns, even today 74% of people in the nation enjoy just 1% of nation’s wealth and 343 million people still do not have access to financial instruments, he noted.

He called upon students to choose a career in banking sector as it was the sector where one could bring transformation in the lives of people.

“What you can achieve here is much more than a politician can achieve. If you are strong in ethics, any political influence can not shake you,” Pereira added. The recent move of the Central Board of Direct Taxes to share information with the banks, especially public sector banks, on the financial condition of defaulters who file returns will help in recovery of siphoned funds at a faster rate, he felt.

Public sector banks play a pivotal role in the economy of the country despite amalgamation of a few banks.

St Aloysius College Principal Dr Praveen Martis said nationalisation of banks was a milestone in Indian economy where banks were turned to mass oriented from class oriented.

Economist Dr G V Joshi, Mangalore University MBA department Professor and Commerce faculty Dean   Dr T Mallikarjunappa and Corporation Bank former Director and social activist T R Bhat spoke on the topics of ‘Nationalised Banks as Catalysts of Change’, ‘The Insolvency and Bankruptcy Code, the Corporate Sector and The Role of Banks in India’ and ‘The Nationalised Banks: Challenges ahead’ respectively.