Press Information Bureau

Government of India

Ministry of Corporate Affairs

05-June-2012 17:36 IST

Strengthen Economic and Financial Institutions to Tap ability to Harness their Potentials- Dr. M.Verrappa Moily

Union Corporate Affairs Minister Dr. . M. Veerappa Moily has emphasized upon strengthening the Economic and Financial Institutions as their ability to harness the potential of inclusive markets, encourage technological innovation, invest in people, and mobilize the talents and skills of a large number of individuals is critical for economic growth. Dr. Moily was addressing a Brainstorming Meeting of the Banking Sector organised by The Indian Institute of Corporate Affairs (IICA), an autonomous body under the Ministry of Corporate Affairs at their IMT Manesar Campus in Gurgaon (Haryana) today.

Dr. Moily said the Rs 64 trillion (US$ 1.25 trillion)-Indian Banking industry is poised to grow exponentially as the sector reflects the health of an economy.He said Indian banks have proved their mettle time and again as their regulations align with international standards, while they remain conventional in their approach.

He said we need to be extremely conscious of the fact that the growth also needs to be sustained and it has to be inclusive, otherwise we will be failing in our fundamental responsibilities towards the society which has provided us the environment to grow. Measures such as adopting the culture of good corporate governance which includes sustainable reporting are necessary steps towards this direction. In order to achieve inclusive development of the economy, it is essential to move towards the system of creative capitalism where incentives for both profit and recognition motivate both self interest and caring for others. This creates challenges for traditional governance structures which can be met by bringing in creativity in the corporate governance system.

The main objective of this meeting was to formulate capacity building programmes for senior management functionaries of the banking sector and related regulators. The meeting focussed on imperative issues and developments in the field of CSR, IFRS, Corporate Governance and BASEL III

On this occasion a Memorandum of understanding between the Indian Institute of Corporate Affairs (IICA) and Institute of Chartered Accountants of India(ICAI) was also signed. This will mean that the IICA will be used as the hub for the training programmes conducted by the ICAI in their 14 acre state of the art campus in Manesar and will ensure a close working partnership on several fronts between the two institutes.

The participants in the meeting included Sh. Manoj Kumar, Joint Secretary, Ministry of Corporate Affairs, Sh. J N Shah, President, The Institute of Chartered Accountants of India, Dr. Bhaskar Chatterjee, DG & CEO, IICA and CMDs or top management from 29 banks such as the Reserve Bank of India, State Bank of India, Punjab National Bank, Overseas Bank of India, etc.

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Corporate governance reforms urged to strengthen institutions, enable inclusive growth and drive capacity building in the banking sector. Strengthening economic and financial institutions is essential to harness market potential and secure sustained inclusive growth by adopting corporate governance practices, sustainable reporting, and creative capitalism that align profit with social responsibility. The meeting sought to design capacity building programmes for senior banking management and regulators on CSR, IFRS, corporate governance and Basel III, supported by a memorandum establishing a dedicated training hub and collaboration between national training and professional accountancy institutes.