How Islamic Banking can only be the Real Solution?

Mr. Seetharaman – CEO Doha Islamic Bank – Qatar

Conceptually the world is getting in any world order. Its globalization is the de-regulation, its technology and consumerism that is redefining the world space. We have seen in the last one year how the financial institutions have been going through extraordinary crisis.

It is greed, infectious greed which is resulting in such penalty made distrust in the financial institution because lack of transparency, lack of governance, lack of disclosure, lack of integrity that is precisely the reason, It is the institution which are old 150 years , 160 years, Lehman brothers, Merrill Lynch, Bastons, Washington Mutual’s , Wachovia, Citigroup name it, Global financial institution are going through such crisis purely because lack of ethical and corporate governance.

What does it mean in layman language?

It is our intention to clearly take care of all the stake holders when it comes to business management, We need to take care of shareholders, we need to take care of the customers, we have to take care of the staff, we need to take care of the society as well.

Conceptually when it comes to business management, we need to articulate a balanced growth, balanced dimension to see that gross prosperity, gross happiness is not compromised. When it comes to commercial banking, you have clear signals, you have lending on which you have profitability conferred based on buying money and selling money, you charge interest commercially and making sure you have that gross yield minus net interest clearly signaling a proposition as a profit.

When it comes to ethical means Shariah clearly comes as a real responsible solution.

I have spoken world over, conceptually Islamic banking operates out of heart in addition to head, while commercial bank operates purely out of head.

We have to necessarily understand, the value system behind, the corporate governance ethics which is being compromise, that is why not only global financial institution today we have talking about it, “satyam” one of the success symbol in the software house today its getting punished, why ? Purely because value system is compromised.

People have realize today, Islamic financial institution is not mushrooming only in muslim world ,Shariah based principles is not confined to Muslims alone, it is a human form of business management that is why today Islamic sukuk is issued in Japan, Canada. Halaal products are coming up in Canada, north America is now practicing Islamic finance. If you look at the Britain, Islamic bank of Britain, European finance house is mushrooming.

300 financial institution over 1.6 trillion is the value of assets today. In real sense is practicing Shariah based principles. Conceptually, critically if you look at it that is the better form of finance to alleviate the property. Today we have seen speakers are conceptualizing the vision 2016 to bring in value systems to have philanthropic as well as the gross happiness to the poverty line.

Alleviating the poverty has been the core responsibility of humanity. If you have to alleviate poverty, than that we all have to contribute which is social responsibility, collective share vision, share responsibility has not been any individual perception. It is the mission of every one, than only we can bring in values that is where we have to conceptualize India with the vision have cross happiness.

India has great civilization, has a compassion society, also society which has got enduring tolerance, enduring culture, diversity in its unity, we have to bring value advantage in the form of supplementary values by means of banking.

It’s not an option look at the gross prosperity we are talking about, world over today Islamic banking is spreading like a fire, its cutting across and India cannot be left alone.

Conceptually if you have to necessarily bring in people above the poverty line, we have collective responsibility to bring Islamic Banking as an ethical system into the frame work of financial services and we have to work towards the goal and it has to be projected and represented, there is no question about it, we have to showcase clearly how it going to add value real in responsible accounting.

If you look at the gulf states where 45% of the world Oil, 20 to 25 percentage of world gas is emanating The Shariah funds s have been the source for supplementary to the financial world, that’s why Citi groups was rescued, Merrill Lynch was rescued, Wachovia was rescued. We have to really respect if you logical partnership to bring in those sovereign in India, we need to bring in Islamic bank into this country.

We have collective responsibility to showcase clearly what it means in terms of ethical, why it is a prudent form of human banking, human phase of banking which can add value to lift poverty and clearly that governance needs to come in, so that people become more human.

Business management is not all about making money, how we make money is equally importance and Shariah teaches that value, Shariah cares for mutual responsibility, Shariah cares for sharing and caring. Vision to development of humanity has been source of Shariah. Conceptualize yourself; you will understand how interesting it is about.

It is like if you say I am in partner in business, and I am going to lend money, it’s a human form of advocation of clear gross prosperity. If you say I am an equity partner as against debt ownership, that’s a different value.

If you say I am going to be transparent and I am going to disclose how much money I am going to make out of you, so that we can share and care for each other prosperity, than the vision and the values of completely different for us to recognize that is better form of business acumen.

Conceptualize yourself, it tells you clearly what are the products; it is not simple murabaha where we have prosperity towards lending and making money out of it. Conceptually vision partnership is the source of Murahaba (Murabaha) again if you look at the product and innovation which comes out of Shariah are humane, the list goes on.

Today in different forms of financial crisis where conceptually we have seen financial world is converting into real economics in the form of human prospects, we have one form of banking that is Islamic bank and it is endless for us to realize how responsible, we have to bring in into the human systems to lift the poverty into the real responsibility accounting for gross prosperity than you all we have to take efforts manifest ourselves towards the politician, manifest ourselves to the correct representations to the Reserve Bank of India to bring in Islamic banking as a source of real value advantage to the common humanity and we will do that in coming days.


Mr. R. Seetharaman is the Chief Executive Officer of Doha Bank Group and has more than two decades of experience in banking, information technology and consultancy. He is a Chartered Accountant and holds certificates in IT Systems and Corporate Management, whilst being a gold medalist in his Bachelor of Commerce degree from the University of Madras.

Mr. Seetharaman is credited with transforming Doha Bank into the best performing bank in the Middle East over the last six years. During his stewardship, Doha Bank has become a global brand. Mr. Seetharaman played a pioneering role in introducing innovative products and services, deploying consumer centric technology solutions and the latest strategic business models. He also promotes economic cooperation and cross border investment opportunities between the GCC and other regions across the globe.

Mr. Seetharaman is also one of the most sought after economists in the GCC and is regularly called upon by CNBC, BBC World, Reuters, Forbes, Dow Jones, Bloomberg and host of regional media channels to share his expertise on recent developments and issues in economics and banking. He has been the recipient of a number of prestigious awards in recent years, including the Gullands Excellence Award, Brand Leadership Award and Best CEO in Middle East Banking Industry in 2008, Banker of the Year in 2007 and Arab Asian Banker Excellence Award in 2006. Mr. Seetharaman has also been commended on his tireless efforts and outstanding creativity in promoting US-Qatari trade and financial ties

< < Back                                                                                               More > >