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Infosys
chief visits J&K Bank, values corporate governance
Our
Banking Bureau
21 April 2003
New
Delhi: N
R Narayana Murthy, chairman, Infosys Technologies, visited
J&K Bank's corporate headquarters, Srinagar. In his
honour a function was organised in the bank's auditorium.
Muzaffar Hussain Beig, finance minister, J&K state,
and M S Pandit, financial commissioner, finance department,
J&K government, were present on the occasion. Senior
executives and officers of the bank also attended the
function.
Murthy, who was
the chairman on the committee for corporate governance
appointed by the Securities and Exchange Board of India,
delivered his address on corporate governance. He said:
"Corporate governance is aimed at maximising sustainable
value for stakeholders in a transparent manner and aligning
interests of stakeholders and the society by adopting
the ethical code of conduct and practices. Corporate governance
sets high standards of disclosure, transparency —
giving opportunity to the investors to correctly evaluate
the financial status, business practices and prospects
of an organisation or an enterprise.
 "Corporate
governance has three players — shareholders, who
invest their capital in the company; management, who manage
the affairs of the company; and the board of directors
who are responsible to the shareholders. To ensure better
corporate governance the composition of the board of directors
should be such as to have adequate independent directors
on the board who, apart from receiving the director's
remuneration, do not have any other material, pecuniary
relationship or transactions with the company, its promoters,
its management or its subsidiaries which in the judgement
of the board may affect independence of the judgement
of the directors.
"Corporate
governance should prevent insider-trading and also ensure
the protection of the interest of investors from exploitation
by persons, who are in possession of or have access to
price sensitive information, which may affect the value
of shares of the company. Through good governance alone,
a company shall progress, flourish and benefit the shareholders,
its stakeholders which includes employees, its customers
and finally the society as a whole."
Earlier, Murthy,
M Y Khan, chairman, J&K Bank, said: "Murthy is
one of India's most renowned and respectable personality
and businessman par excellence. Considering the contribution
Murthy has made to the country's IT industry we can call
him the Messiah of New India. Murthy has a history behind
and a vision ahead. Today's gigantic structure of Infosys
has emerged through the various phases of development
from a humble beginning founded by Murthy."
Beig stressed on
the need to emulate corporate governance in government
functioning for achieving the objectives of the overall
transformation and development of the society. He said
he is of the view that for achieving the objectives, sustained
growth and development of the society, corporate governance
should replace bureaucratic governance. Before concluding
his thought-provoking address, Beig appealed Murthy to
lend his name to J&K by making investment in the state,
which has been languishing for development, and could
also come on the map of modern society.
 J&K
Bank was incorporated in 1938 by the then government as
its promoter to bolster the economy of the state. Today
the bank has emerged as one of the leading commercial
banks in India with its branch network spread across the
length and breadth of the country.
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