VOLUME4,2011

PRACTICES OF CORPORATE SOCIAL RESPONSIBILITY (CSR) IN BANKING SECTOR IN INDIA: AN ASSESSMENT

SumanKalyanCHAUDHURY1,SanjayKantiDAS2,PrasantaKumarSAHOO3
BerhampurUniversity1,LumdingCollege2,UtkalUniversity3,India

Atpresent,theworldover,thereisanincreasingawareness aboutCorporateSocialResponsibility(CSR),Sustainable Development(SD)andNonFinancialReporting(NFR).The contribution of financial institutions including banks to sustainable development is paramount, considering the crucial role they play in financing the economic and developmentalactivitiesoftheworld.Inthispaperauthors havehighlightingtheCSRpracticesinIndianbankingand financialinstitutions,differentcasestudiesandkeyfindings of the study and a few conclusions. The present study is basedonthecasestudymethodandanefforthasmadeto knowthestatusofCSRandstrategiesadoptedforCSRin theBankingsector.Twelvebankingandfinancialinstitutions areselectedunderstratifiedrandomsamplingmethodfrom thevastnetworkofbankingandfinancialinstitutionsofthe country. Data are collected from the secondary sources mostparticularlyfromconcernedBanksAnnualReport,web sites,newslettersandothersecondarysources.Thestudy coversthetimeperiod2007to2010.Fromthecasestudy, itisobservedthatallthefinancialandbankinginstitutions of the country are directly engaged in social banking and developing banking approach. Further, all banking and financialinstitutionsunderstudyundertakesbothfundbased andnonfundbasedactivitiesasapartofCSRactivity.
<G21 <G28 <M14 <CORPORATESOCIALRESPONSIBILITY < SUSTAINABLE DEVELOPMENT < NONFINANCIAL REPORTING < CORPORATE GOVERNANCE < PUBLIC SECTOR ENTERPRISE < COMMITTEE OF PUBLIC UNDERTAKINGS

in particular, can help contribute to this effort by playing a meaningful role. RBI in its notification dated 20th December 2007 has advised banks to take note of theissuesraisedandconsiderusingthesametoputinplace a suitable and appropriate plan of action towards helping thecauseofsustainabledevelopment,withtheapprovalof theirBoards. GoodCorporateGovernanceincludessociallyresponsible business practices. A socially responsible approach to businesswouldinvolveattentiontosocialandenvironmental concerns in addition to economic goals and encourage companies to balance financial profits, economic value additionandsocialgood. Literature on CSR is enriched by the researchers of developednations.However,somanysurveysandresearch studies were also conducted by the researchers, academicians and institutions in Indian context. A few research organisation and professional bodies were also shownsimilarefforttostudythestatusofCSR,activitiesof CSRintheIndiancorporatesector.Keepingparitywiththe situation Govt of India also constituted committees and subcommittees,studygroupstostudythestatusofCSR and issued several recommendations, directions and guidelinesfortheimplementationofCSRstrategies. A survey was conducted by Business Community FoundationforTERI(TataEnergyandResearchInstitute) Europeduringtheyear200102andreportedthatalarge portionofgiantcompanieswereengagedinCSRactivities. Someofthemajorfindingsofthestudyincludes(i)Serious andcommittedapproachtoCSRisincreasingitsreach,but there is vast ground yet to be covered, (ii) Collaboration work between companies & NGOs is increasing, (iii) Corporate are realizing that Good for business is good business,and(iv)Mostinterventionssofarphilanthropic innature,ratherthanstrategic. AnotherSurveywasconductedjointlybyConfederationof IndianIndustry(CII),UNDP,BritishCouncilandPriceWater &HouseCoopers(PWC)in2002,whichreportedthatall most all the companies under the study recognize the importance of CSR and believed that the passive philanthropywasnolongersufficient.Itwasalsoreported thatasignificantproportionofrespondentsrecognizedCSR asthemeanstoenhancelongtermstakeholdersvalue. Another most important aspect of CSR, according to the report, is that it provides an opportunity to improve relationshipswithlocalcommunities. AccordingtoHopkins(2003),CSRisconcernedwithtreating theinternalandexternalstakeholdersofthefirmethically or in a socially responsible manner and the wider aim of corporatesocialresponsibilityistocreatehigherandhigher standardsofliving,whilepreservingtheprofitabilityofthe corporation, for its stakeholders. Logsdon et al. (2006) mentioned an important thing about CSR that 76

Atpresent,theworldover,thereisanincreasingawareness aboutCorporateSocialResponsibility(CSR),Sustainable Development (SD) and NonFinancial Reporting (NFR). Consequently,thereisaconcertedeffortamongalltypes oforganizations,toensurethatsustainabledevelopmentis notlostsightof,inthepursuitoftheirrespectivegoalsprofit making, social service, philanthropy, etc. CSR entails the integration of social and environmental concerns by companies in their business operations as also in interactionswiththeirstakeholders. Thecontributionoffinancialinstitutionsincludingbanksto sustainable development is paramount, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgencyforbankstoactasresponsiblecorporatecitizens inthesociety,especiallyinadevelopingcountrylikeIndia needtobehardlyoveremphasized.Theiractivitiesshould reflecttheirconcernforhumanrightsandenvironment. Reserve Bank of India feels that, there is general lack of adequateawarenessontheissueinIndia.Inthiscontext, theneedforsustainabledevelopmentaleffortsbyfinancial institutions in India assumes urgency and banks, www.researchjournals.co.uk

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the interpretation of CSR often changes in the area of strategic management due to the fact of varying national and cultural factors. Later on Moon and Vogel (2008) reinforced it saying that CSR is highly contextual and stronglydependsonthecountryandthestateofgovernance of that time. However, Hopkins (2003) found in his study thatbusinessesthatengageinCSRtypicallyfocusonsome orallofthefollowings: environment:Whilefocusingonthis,organizationslook at the environmental impacts of their products and services,aswellaswhattheydooutsidethebusiness toimprovetheenvironment, employees: The organizations who think in this perspective, they take care of all the employees adequatelyfocusingonworkplaceconditions,benefits, livingwages,andtraining, communities: The organizations that care about communities they voluntarily take advance steps to improvethequalityoflifeforemployeesandtheirfamilies aswellasforthelocalcommunityandsociety, regulations: While focusing at this point, organizations respectthelawsfullyandoftenexceedthemtobemore sociallyresponsible, emergency supports: Sometimes organizations keep plans ready to manage business crises and ensure safety for employees and surrounding communities. Besidestheyalsotakeinitiativestoprovidesupportin timesofemergenciessuchasdisasterorepidemics. CSRdevelopedveryslowlyinIndiathoughitwasstarteda longtimeago.ThestudyconductedbyChahoudetal.,2007 revealedthatcorporatesocialresponsibilityinIndia,isstill characterized mainly by philanthropic and community development activities and Indian companies and stakeholders have begun to adopt some aspects of the mainstream agenda, such as the integration of CSR into their business processes and engagement in multi stakeholder dialogues. To describe the current state and futureprospectsofCSRinIndia,Sundar(2000)dividedthe developmentofCSRintofourphasesbasedonthecountrys politicalandeconomicbackground.Lateron,Chahoudet al.(2007)reinforcedhim(2000)sayingthatdifferentCSR practices moved on parallel with Indias historical development.Thefourphasesareasfollows:
Table1:PhasesofCSRpractises Phases PhaseI (Till1914) KeyThrust Keystrategies CSRmotivated The oldest form of CSR was by charity and motivated by charity and philanthropywithdirectinfluence philanthropy from culture, religion, family tradition, and industrialization process. CSRforIndias Dominated by the countrys s o c i a l struggle for independence and influenced fundamentally by development Gandhistheoryoftrusteeshipfor consolidationandamplificationof social development. Gandhis reform programs which included activitiesthatsoughtinparticular the abolition of untouchability, womensempowermentandrural development. CSRunderthe paradigm of the mixed economy Theparadigmofmixedeconomy withtheemergenceoflegislation on labor and Environmental standards,affectedthethird

phaseofIndianCSRThisphase is also characterized by a shift from corporate selfregulation to strict legal and public regulation ofbusinessactivities. PhaseIV
(1980onwards)

CSR at the interface b e t w e e n philanthropic and business approaches

Indian companies and stakeholders began abandoning traditional philanthropic engagementand,tosomeextent, integrated CSR into a coherent and sustainable business strategy,partlyadoptingthemulti stakeholderapproach.

Source:BasedonSurveyofLiteratureonCSRandSundar (2000)

Recognizing the importance of CSR, the Ministry of CorporateAffairs,GovernmentofIndia,hasrecently(2009) brought out a set of voluntary guidelines on CSR for corporate sector. These CSR guidelines pertain to areas, such as, care for all stakeholders, ethical functioning, respectforworkersrightsandwelfare,respectforhuman rights,environmentandsocialandinclusivedevelopment. WhilestudyingthecurrentstateofCSRinIndia,Cheunget al.(2009)commentedthatIndiaseconomicreformandits risetobecomeanemergingmarketandglobalplayerhas notresultedintosubstantialchangesinitsCSRapproach. ContrarytovariousexpectationsthatIndiawouldadoptthe globalCSRstandards,itspresentCSRapproachstilllargely retainsitsowncharacteristicsadoptingonlysomeaspects of global mainstream of CSR. Furthermore, Arora and Puranik(2004)declaredthatIndianCSRisstillinaconfused state.Their(2004)studyconcludedthatthoughtheIndian understandingofCSRseemstobeshiftingfromtraditional philanthropy towards sustainable business, philanthropic patternsstillremainwidespreadinmanyIndiancompanies andcommunitydevelopmentstillplaysthedecisiverolein CSRagenda. Ahmed(2009)contributedinthesamecontextthroughan empiricalresearch,underthesupervisionofASSOCHAM Research Bureau, on 300 Indian companies which are activein26variousthemeareasfortheirCSRinitiatives. Her(2009)research,whichwaslateronsupportedbythe survey of Mumbai based online organization Karmayog (2009),showedthatcommunitywelfareperceivedtobethe toppriorityareaonthecorporatesectorslistwithashare of 21.93 per cent out of the total 26 activities. It involves activities that focus more towards the underprivileged communitythatlivesaroundthevicinityofcompanyplants, facilitating education and health care and supporting projects that lead to employment generation. The second most sort CSR initiative followed by Indian industrialist is towardsprovidingeducationandenlighteningtheyouthof the country. The corporate sector helps in imparting educationtothedeprivedkidsintheurbanareasalongwith thechildrenfromruralareasthatdonothaveanyaccessto medium of information. They provide funds that help in settinguplocalschools,collegesandcentersforlearning andeducation.Since,globalwarmingisthebuzzwordnow adays,Indiancorporatesectorasresponsiblemembersof thesocietyhaveinitiatedtheireffortstopreserveandsave it. Thus, environment is the third most prioritized area undertaken in CSR activities. CSR projects in this area deliversolutionsthatarebothenvironmentalandbusiness friendly,providingfinancialbenefitsaswellasimprovingthe firm's image as an environmentallyaware company. The fourthmostpopulararea,thatcorporatesectorgetinvolves inisthehealthcare.Theyoffermobilemedicalserviceswith medicalhelpalongwithorganizingregularmedicalcamps 77

PhaseII (19141960)

PhaseIII (19601980)

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to eradicate diseases, creating awareness on preventive healthcareamongothers.TheIndiancompaniesareequally extending their support in the development of the rural areas.Theyareprovidingbothfinancialandinfrastructural assistancetowardsagriculture,animalhusbandry,cottage industries by developing local skills, using local raw materialsandhelpingcreatemarketingoutlets.Thus,itis thefifthmostprioritizedareaunderCSRinitiativesisrural development. Other CSR initiatives includes projects relatingtowomenempowerment,donations,disasterrelief, children welfare, poverty eradication, blood donation, Vocational training, HIV/AIDS awareness and relief worketc. CSR has been assuming greater importance in thecorporateworld,includingthebankingsector.Thereis a visible trend in the financial sector of promoting environmentfriendlyandsociallyresponsiblelendingand investment practices. The United Nations Environment Programme(1972)advocatesthatthefinancialsectorhas aroletoplayinprotectingenvironmentwhilemaintaining profitabilityoftheirbusiness.Theconceptoftriplebottom line espoused by John Elkington, encompasses social, environmental and financial accounting. Keeping these perspectivesinview,theReserveBankofIndiahasrightly issuedmoralsuasionpolicyforbanksonCSR.Recently, theMinistryofCorporateAffairshasalsoissuedvoluntary CSR guidelines for Indian corporate. Accordingly, theMinistryofRuralDevelopment(MORD),Govt.ofIndia hascomeoutwithGuidelinesforRuralSelfEmployment Institutes(RSETIs)andaccordinglyinstructedthebanking andfinancialinstitutionsofthecountrytofollowthespiritof thedirectives. To highlight the role of banks in corporate social responsibilitytheRBIcirculatedanoticeonDecember20, 2007 for all the scheduled commercial banks, with title CorporateSocialResponsibility,SustainableDevelopment andNonFinancialReportingRoleofBanks.Majorissues discussed in the notice were regarding Corporate Social Responsibility, Sustainable Development, and NonFinancialReporting.Briefingaboutthecorporatesocial responsibilityprogramtoothermembercommercialbanks RBI followed many international initiatives to highlight the importance of this notice like United Nations EnvironmentProgramFinanceInitiative(UNEPFI),Global ReportingInitiative(GRI),InternationalFinanceCorporation, The Equator Principles, and Declaration on Financial Institutions. Apart from these international initiatives, RBI report also talked about other important and urgent issues regarding global warming & extent of problem, the economics of climatechange,theHappyPlanetIndex,theKyotoProtocol etc and requested to implement the same earnestly and sincerely. InthecontextofIndianbankingsectorverylittlesystematic documentation of CSR initiatives is available so far. However,aneffortismadeinthispapertopresentdetailed CSRinitiativesofIndianbankingsector. Boththecorporatesectorandbankingsectoroftheworld aretalkingabouttheimplementationofCSRandinIndia toosomanycorporateentitiesandbankinginstitutionsare also came forward to implement the same. A lot of study wasmadeontoknowthestatusofCSRimplementationin theworldandIndiancorporatesector.Butonlyafewstudies www.researchjournals.co.uk 78

were made in respect of CSR implantation in the Indian Bankingsector.Amodesteffortismadeinthepresentstudy toknowthestatusofCSRandstrategiesadoptedforCSR intheBankingsector. The present study is based on the case study method. Twelvebankingandfinancialinstitutionsareselectedunder stratifiedrandomsamplingmethodfromthevastnetworkof bankingandfinancialinstitutionsofthecountry.Further, the present study covers eight nationalized commercial banks including State Bank of India, two private sector banks,onecooperativebankandonedevelopmentbanks. Data are collected from the secondary sources most particularlyfromconcernedBanksAnnualReport,websites, newslettersandothersecondarysources.Thestudycovers theperiod2007to2010. FromtheCaseStudy1to12ofallthebankingandfinancial institutionsunderstudy,itisobservedthatallthefinancial andbankinginstitutionsofthecountryisdirectlyengaged insocialbankinganddevelopingbankingapproach.Asper theinstructionoftheRBI,majorityofitsmembercommercial banks started new programmes on social and economic welfareofthemasses,keepingparitywiththeguidelines. AllBankingandfinancialinstitutionsunderstudyundertakes bothfundbasedandnonfundbasedactivitieswhichhave beenpresentedinthebelowchart.

Onlyonefinancialinstitutioni.e.SIDBIunderstudyhas publisheditsownCSRReportkeepingthebenchmark of internationally accepted norms of Global Reporting Initiative(G3).However,bankslikePNB,SBI,BOBand BOI publishes a separate segment on CSR in their Annual Report. PNB also publishes a report on CSR strategybutitwasnotdraftedaccordingtointernationally acceptedbenchmark. ItisalsoobservedthatonlytwobanksnamelyJ&KBank and Union Bank of India follow a system of prefixed budgetforpursuingCSRactivitiesi.e.1%ofprofitafter tax.WhileSIDBIspends19%ofnetprofitin200809on CSRactivitieswhichisalandmarkinthehistoryofCSR funding in the banking sector of the country. It is also observed from the information supplied in the Annual ReportthatboththebankPNBandSBIspendsahuge amountforpursuingCSRactivitiesyearlybuttheydid nothaveanytargetedfixedamountfordoingthesame expenditure.

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AllmostallthebanksunderstudyexceptJ&KBank,Ing VysyaBank,HDFCBank,BOIandSIDBIdidnotfollow the Govt.of India (MoRD) guidelines on setting up of RSETIs i.e. establishing of Rural Self Employment Institutes.BOBistheleaderintheformationofRSETIs (25)followedbyAllahabadBank(21). It is further observed that all the banks and financial institutions under study are engaged in spending for socioeconomic development, rural development and communitydevelopmentprojects.Further,prioritysector lending,microfinancing,MSMEfinancingandprojecton environment excellence etc are common to all the financialandbankinginstitutions. ItisfurtherobservedthatAdoptionofGirlChildbySBI, AdoptionofVillagesbyPNB,AdoptionoforphansbyIng Vysya Bank, Heritage Preservation and Tourism Promotion by J & K Bank, Cultural Promotion by Saraswat Cooperative Bank, Retail Mobile Marketing Van for products of SHGs of Canara Bank, Rishkaw Projects of PNB etc are the unique feature of CSR activitiesofcommercialbanksinIndia. AnothersignificantcontributionofCSRactivityperformed by SBI and PNB are the funding for Research and Development Grants to universities and academic institutions.TheSaraswatCooperativeBankhasalso promotedsuchactivityinadifferentstylebutlimitedupto thestateofMaharastha. BankofIndiadeclaredthefactthattheyforwardedover 45%ofnetadjustedcredittowardsprioritysector.Their CSR Strategy is not as unique as they still follow the earliersocialbankingconcepts. Another feature of CSR activities which are observed fromtheinformationsuppliedintheannualreportby thebankingcompaniesunderstudyisthesettingupof RuralConsultancyCentre.BankofBorodaistheleader insettingupofsuchconsultancycentre. The business of 21st century will have no choice but to implementCSR.Thecorporate&theGovtshouldtrytobuild uparelationshipbetweenthebusinessandthesociety.The concept of corporate social responsibility CSR has so far failed to take deep root in India because of lack of co ordination between the corporate efforts, Govt. and non Govt.organizationalefforts.Thecorporateshouldbemade aware about the changing nature of business due to globalization, transformation of market environment and deepeningofcompetition.TheCSRshouldnotbemerely astatementofintent.Itshouldbemadecompulsoryforthe corporateoperatinginIndia.Further,appropriateauthority shouldensuremandatoryrequirementofacertainspecific percentage of net profit for pursuing CSR activities every yearandalsoneedstobeinstructedtopublishCSRreport annuallyasparspecificformatdesignedbytheregulator. WhiledesigningtheCSRformattheregulatorshouldkeep in mind the fact of CSR principles viz. care for all stakeholders,ethicalfunctioning,respecttoworkersrights and welfare, respect for human rights, respect for environmentandactivitiesforsocialandinclusivegrowth. FortheIndianbankingcompanywhatevertheCSRactivities arehappeningarecenteredoneducation,ruralupliftment and helping the physically challenged. Some of the CSR initiatives,themajorbankingcompanieshaveundertaken areEducationforall,Communitydevelopment,Adoptionof Children, Vocational training, Rural Development, Environmentprotection,Socioeconomicdevelopmentof www.researchjournals.co.uk 79

thevulnerablesectionsofsociety. ThereisaneedtopromoteadriveinbankingCompanies towards greater accountability on Corporate Social Responsibility(CSR).Inordertoattainthesocialobjectives, thereisaneedforframingaCSRPolicyineverybanking company for prioritization of activities for social spending andallocationofseparatefundsforthispurpose.Moreover, to have an impact of the CSR spending and utilization of allocated budget, there should be a system of periodical monitoringandreportingtotheBoardofDirectors.

Casestudy1:J&KBank MajorCSRareas (a)EducationforAll Programmes. (b)Socioeconomic developmentof socialgroups. (c)Heritage preservation. (d)Environmental issues. (e)Financial supporttovulnerable sectionsofsociety. (f)Promotionof tourism. (g)Community development. Keyobservations BankhasitsownphilosophyonCSR.The Banks engaged in the CSR activities according to the BODs direction. The bank engaged in the socioeconomic development, rural development and sustainableeconomicdevelopmentofthe country. It is also observed that a fixed Percentageofprofitisspend(i.e.1%)on CSR. No evidence is found in Annual report about the separate CSR Report but a section is inserted on CSR. Further, the bank does not mention about the implementation MoRD Guidelines for Rural Self Employment Institutes (RSETIs).

Casestudy2:INGVysyaBank MajorCSRareas (a) Educational support. (b) Environmental issues. (c) Financial supporttovulnerable sectionsofsociety. (d) Community development. Keyobservations Banks have a long term vision on CSR. TheBankengagedintheCSRactivities according to the BODs direction. No evidenceisfoundinAnnualreportabout theseparateCSRReportbutasectionis insertedonCSR.Further,thebankdoes not mention about the implementation MoRD Guidelines for Rural Self Employment Institutes (RSETIs). Moreover, no fixed budget is earmarked forimplementationofCSR.

Casestudy3:TheSaraswatCoOperativeBankLTD. MajorCSRareas (a) Protecting culturallineage. (b) Assistance nationalandnatural calamities. (c) Educational support. (d) Environmental issues. (e) Community development. (f) Rural development. Keyobservations Banks have a long term vision on CSR anditwasthecenturyoldpracticesofthe Bank. The Bank engaged in the CSR activitiesaccordingtothemanagements decisions. As a cooperative Bank, the bankprovidesaleadroleinnationbuilding throughsocialandruralbankingapproach.

Casestudy4:AllahabadBank MajorCSRareas (a) Educational support. (b) Poverty eradication. (c) Rural development. Keyobservations ThoughtheBankhasitsownphilosophy on CSR but failed to publish any CSR reportonGlobalStandardlikeGRI.Only asectionisinsertedonAnnualreporton socialresponsibility.TheBanksengaged in the CSR activities according to the BODsdirection.Thebankengagedinthe

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(d) Vocational trainingto unemployed.

socioeconomic development, rural development and sustainable economic development of the country. It is also observedthatnofixedPercentageofprofit isearmarkedforCSRspending.Further, the bank had implemented MoRD Guidelines for Rural Self Employment Institutes(RSETIs).

Casestudy9:PunjabNationalBank MajorCSRareas (a) Sustainability. (b) Corporate Volunteering. (c) Social Investments. (d) Health. (e) Education. Keyobservations PNB regards Corporate Social Responsibility(CSR)asaninvestmentin societyandinitsownfuture.Theaimof thebankistocreatesocialcapital.The BankhasitsownreportonCSRbutfails to publish global standard CSR report. Moreover, no fund is earmarked for pursuingCSRactivities.Thethrustofthe bank on CSR revolves around in sustainability, social investment, education and health. The bank establishes two TRUST for the rural development and to foster financially inclusive growth in the economy. In addition,theBankhaslaidemphasison capacity building and training of intermediaries.TheBankhasalsosetup RuralDevelopmentandSelfEmployment Training Institute (RUDSETI) as per the direction of the Ministry of Rural Development. Adoption of villages for development is the unique feature of PNBsCSRpolicy.

Casestudy5:CanaraBank MajorCSRareas (a) Educational support. Keyobservations ThoughtheBankhasitsownphilosophy on CSR but failed to publish any CSR reportonGlobalStandardlikeGRI.Only (b) Microfinancing. asectionisinsertedonAnnualreporton (c) Rural socialresponsibility.TheBanksengaged development. in the CSR activities according to the BODsdirection.Thebankengagedinthe (d) Vocational socioeconomic development, rural trainingto development and sustainable economic unemployedand development of the country. It is also women. observedthatnofixedPercentageofprofit isearmarkedforCSRspending.Further, the bank had implemented MoRD Guidelines for Rural Self Employment Institutes(RSETIs). Casestudy6:UnionBankofIndia MajorCSRareas (a) FarmersClub. (b) Village KnowledgeCenters. (c) JointLiability Groupsforpromotion ofSHGs. (d) Rural Development. (e) Educational support. Keyobservations TheBankestablishedUnionBankSocial Foundation,tofulfilltheobjectivesofCSR which is something similar to Canara Bank. CSR Report is not published separately except a section on Annual Report.Afixedpercentageof1%ofProfit AfterTaxisearmarkedforCSRactivities. Further,thebankhadimplementedMoRD Guidelines for Rural Self Employment Institutes(RSETIs).

Casestudy10:BankofIndia MajorCSRareas (a) Educational support. (b) Environmental issues. (c) Financial supporttovulnerable sectionsofsociety throughmicro financing. (d) MSME financing. (e) Dairy development. (f) Agriculture development. Keyobservations Bank of India fails to publish report on CSR and there is no section on Annual Report except a statement on social banking and priority sector lending. One unique feature of the bank is that they extend5%moreonprioritysectorlending overandabovetheRBIdirectivesduring thelastfewyears.Further,thebankdoes not mention about the implementation MoRD Guidelines for Rural Self Employment Institutes (RSETIs). Moreover, no fixed budget is earmarked forimplementationofCSR.Noseparate reportonCSRexceptabriefstatementon CGreport.

Casestudy7:HdfcBankLTD MajorCSRareas (a) Educational support. (b) Livelihood trainingandsupport. (c) Vocationaland technicaleducation. (d) Microfinancing. Keyobservations TheBankhasawellknitprincipleonCSR and a long vision to empower the community through socioeconomic development of underprivileged and weaker sections of society. No separate reportonCSRexceptabriefstatementon CGreport.NobudgetallocatedforCSR spending. The banks annual report did not mention anything on the implementation of MoRD Guidelines for Rural Self Employment Institutes (RSETIs).

Casestudy11:BankofBoroda MajorCSRareas (a) Rural development. (b) Women's empowerment. (c) Vocational training. (d) Community Welfare. (e) Physically Challenged. (f) Poverty Eradication. Keyobservations TheBankhasawellknitprincipleonCSR and a long vision to empower the community through socioeconomic development of underprivileged and weaker sections of society. No separate reportonCSRexceptabriefstatementon CG report. Again, no fixed budget allocated for CSR spending. Establishment of large number of rural consultancy centre is the unique feature of the bank CSR policy. Another significantcontributionoftheBankisthe adoption of village for their all round development. The Bank has also set up RuralDevelopmentandSelfEmployment Training Institute (RUDSETI) as per the direction of the Ministry of Rural Development.

Casestudy8:StateBankofIndia MajorCSRareas (a) Community ServicesBanking. (b) Rural Community Development. (c) Adoptionofthe GirlChild. (d) Researchand Developmenton Education. Keyobservations HavingastrongphilosophyonCSR,the Bankwasactsasaresponsiblecorporate citizen.Thebankiscommittedtonation building through Community Services Banking, apart from normal banking operations. A separate section is given onCSR.ReportonCSRonGRIstandard isnotyetpublished.Adoptionofgirlchild is the unique activities of the bank. Another significant contribution of the bank is the funding for Research and DevelopmentonEducation.Thebankalso involves in Micro financing and other communitydevelopmentactivities.Bank spendsahugesumfortheCSRactivities butnofixedbudgetisallocatedforCSR activities. Further, the bank had implementedMORDGuidelinesforRural SelfEmploymentInstitutes(RSETIs).

Casestudy12:SmallIndustryDevelopmentBankofIndia MajorCSRareas (a) Sustainable banking. (b) Environment protection. (c) Social Commitment. Keyobservations SIDBIsCSRisbasedonourcommitment and furtherance of responsible banking through both within the Bank and outside,intheMSMEsector,enhancement of social welfare, capacity building of human resources of both SIDBI and the MSME sector as well as constant coordinationandengagementwithvarious

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(d) Stakeholders engagement.

stakeholders. The unique feature of the bank is that it has its own CSR policy keepingthebenchmarkofinternationally accepted norms of Global Reporting Initiative(GRI)G3.Acertainpercentageof profitaftertaxisearmarkedforspending CSRactivities.Theinitiativeforremoving regionalinequalitiesistheuniquefeature oftheBankincludingmicroplusservices andMSMEdevelopment.

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