Banks must focus on core guiding principles: FM

Banks should work on the three core guiding principles of consistency, stability and trust before scaling up their operations, said Union Finance Minister Nirmala Sitharaman.

Addressing the 116th Foundation Day of City Union Bank Ltd., she said “scaling up is like a contagious disease. But institutions like banks should understand their core strengths and weaknesses. City Union Bank, with its conventional wisdom, had worked with consistency, stability and trust and earned a reputation for itself.”

“We always quote the example of multinational companies for growth. But here, we have a bank with an unblemished record. I was surprised to note it did not have even a single day labour strike in the last 115 years. It is time that we talk about the success of a bank from Tamil Nadu,” she said.

Asserting that CUB had been working on its three core guiding principles and had also invested money in corporate social responsibility such as building toilet blocks, restoring water bodies and enhancing school infrastructure, she said this made the public and depositors to think about the service it had rendered to the society.

Launching the all-in-one mobile app, she said even if there was a scam in a small co-operative bank, immediately public started questioning about the safety of the deposits.

“The management and officials of City Union Bank have worked with responsibility. Since its inception, the bank has withstood the test of time and had emerged successful even when there were instances of major bank collapses in 1936 and 2008 respectively,” she said.

In his address, bank’s managing director and CEO, N. Kamakodi, traced the history of the bank and narrated the schemes undertaken by it under the corporate social responsibility initiative for which it had spent ₹51 crore.

He also said the fact that CUB did not experience even a single day of labour strike in its 115-year-old history was something that can be described as the ‘rarest’in the global banking scenario.

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Printable version | Sep 28, 2022 10:57:48 am |