Kotak on growth goals: No alternative than to be a well-governed company

Veteran banker Uday Kotak.

Veteran banker Uday Kotak.

Kotak Mahindra Bank managing director and CEO Uday Kotak Friday said return of capital is more important than return on capital, and suggested the need for enhanced risk capital for industry.

“There is no alternative than to be a well-governed company if India needs to achieve the growth rates it aspires for. There is need for heightened responsibility of fiduciaries of companies and stakeholders which they need to focus on,” he said at a CII corporate governance seminar.

The CII also released 15 recommendations on corporate governance and urged companies to adhere to the guidelines.

According to UK Sinha, former chairman, Securities and Exchange Board of India, while Indian laws and regulations are comparable to global governance regulations, it’s the implementation of the same that needs focused attention in India.

CII National Council on Corporate Governance chairman Keki Mistry said a whistleblower policy is a critical element of internal control. “But it is also equally important to ensure that there are sufficient checks and balances in the system so that mala fide intentions are discouraged and complaints with dishonest intents penalized,” he said.