Pics: Spoorthi Ullal
Daijiworld Media Network – Mangaluru (DV)

Mangaluru, Feb 18: Supreme Court judge Justice Abdul Nazeer on Friday February 18 said that the banking sector plays a vital role in the economic development of the country, and reflects the health of the country's economy.

He was delivering the Founders' Day lecture at Karnataka Bank on the topic 'Constitutional philosophy and banking' Bank's head office in Pumpwell here.

"The banking sector is the lifeline of any modern economy. Banking is one of the important pillars of the financial sector and plays a vital role in the functioning of an economy. It is very important for the economic development of the country, as it ensures that the financing requirements of trade industry and agriculture are met with a higher degree of commitment and responsibility," he said.

"The development of the country is integrally linked with the development of banking sector. In the modern economy, banks are to be considered not as dealers of the economy but as leaders of development. They play an important role in mobilization of deposits and dispensing of credit to various sectors of the economy. The banking system reflects the economic health of the country. The strength of an economy depends on the strength and efficiency of the financial system, which in turn, depends on a sound and solvent banking system. A sound banking system efficiently mobilizes savings in productive sectors and a solvent banking system ensures that the bank is capable of meeting its obligation to its depositors," Justice Nazeer said.

"India was not a stranger to the concept of banking. Banking was in existence in India during the Vedic times from 2000 BC to 1400 BC. Loans were well understood during those days," he added

Speaking on the Constitution said, he said, "The Constitution transformed the status of the people of India. There was a sea change from the conditions that prevailed prior to independence - Indians were no longer colonial subjects. The citizens of India were free and equal members of a sovereign nation, and a large majority of Indians who were deprived of dignified human existence within oppressive caste and feudal structures became for the first time equal citizens of our great nation. It is frequently claimed that the preamble, fundamental rights, and directive principles contained in the Constitution embed the values of freedom, equality, economic and social justices which are necessary for effective exercises rights. Together with that, the banking system has a pivotal role to play in ensuring the dignity of each individual and helping each person to realise their fundamental rights guaranteed by the Constitution to their fullest extent."

He also spoke about the origin of the banking system and said the system, as it exists today, is a product of evolution through a number of centuries. "In all the countries of the world, banking has been in existence in one form or other."

Mahabaleshwara M S, MD and CEO of Karnataka Bank welcomed the dignitaries and gave a detailed overview of the Bank and founders' day event.

Retired judge Justice A V Chandrashekar, director of the Bank gave a detailed introductory note on Justice Abdul Nazeer.

Justice Nazeer was felicitated by Mahabaleshwara M S, P Pradeep Kumar, chairman and A V Chandrashekar. Sameera Abdul Nazeer was felicitated by directors Mythily Ramesh and Uma Shankar.

P Pradeep Kumar, chairman of Karnataka Bank delivered the presidential address and said that Karnataka Bank follows constitutional philosophy in its service to the customers. "We have over 46% of the branches in rural areas where the majority of lower-income households have benefited. We also lend to the weaker section indirectly by funding micro-financing institutions," he said.

On the occasion, the Bank handed over CSR funds of Rs 11,50,000 to Dr Padmanabha Kamath, managing trustee (cardiology) of Door Steps Foundation Trust, Mangaluru to donate ECG machines to rural areas, Rs 23 lac was handed over to Ramana Annavarapu, board member of IIMPACT, Gurugram, Haryana to educate girls, and Rs 6,78,000 was handed over to Shivarama Pakala of Aila Shree Durgaparameshwari Temple, Kerala to install solar power.

Gokuldas Pai proposed the vote of thanks. The invocation was rendered by Veena T N, and the event was compered by Jenifer M B Moras.