AJBMT Journal December Issue

ISSN 2393 - 9702
ASIAN JOURNAL
OF
BUSINESS MANAGEMENT AND TECHNOLOGY
VOLUME 1 – ISSUE 4
OCTOBER – DECEMBER 2016
QUARTERLY
DEPARTMENT OF MANAGEMENT STUDIES
G. PULLIAH COLLEGE OF ENGINEERING AND TECHNOLOGY
(Approved by AICTE, New Delhi. Affiliated to JNTUA, Ananthapur)
Pasupula(V), Nandikotkur Road, Kurnool 518452. Andhra Pradesh, India.

Asian Journal of Business Management And Technology (AJBMT), ISSN 2393-9702,
Volume 1, Issue 4, October- December (2016)
CONTENTS
S. No. Title of the Paper and Author Pg. No.
1
Impact of Organizational Communication on Employee’s
Performance
Dr. H S Abzal Basha*
1-11
2
Human Resource Management Practices in Life Insurance
Sector in India
K. Ranjith Naik* Prof. C.N. Krishna Naik**
12-25
3
A Comparative Study on Growth and Performance of Public
and Private Insurance in Indian Insurance Sector
K. Nagaiah* E. Pallavi** T. S. Sanjeev Kumar***
26-38
4
Corporate Social Responsibility: A Tool For Reinforcing The
Societies
B. Ismail Zabiullah* T. Sanjeev Kumar**
39-49
5
Comparative Analysis of Economic Value Addition of Selected
Automobile Companies
Ruhi Afreen* K. Uday Kumar Achari**
50-64
6
A Paradigm Shift in Financial Reporting Standards
Dr. Ch .Krishnudu*
65-70
7
A Study on Quality of Customer Service in Public Sector
Banks with Special Reference to Ananthapur District of A.P.
Sugali Dese Naik* Dr. Godha Rama Krishna**
71-90
8
A Study on Human Resource Planning With Special Reference
to Sugar Industry
Shaik Rubeena* Shaik Mubeena**
91-102
9
A Study on Employee Job Satisfaction with Special Reference
to Penna Cement Industries
B. Rajitha*
103-113
10
Analysis of Leadership Practices in India and USA
Vipin Chandra Sharma* Prof. D. R. Jat**
Prof. Trilok Kumar Jain***
114-119
11
Education of Girls in Conflict Zone – A Survey Study in
Srinagar (J&K)
Nafees Fatima* Trilok Kumar Jain**
120-137

ASIAN JOURNAL OF BUSINESS MANAGEMENT AND TECHNOLOGY
1
ISSN 2393-9702
Volume 1, Issue 4, October – December (2016), pp. 01-11
Website: www.ajbmt.com
………………………………………………………………………………………………......
Impact of Organizational Communication on Employee’s
Performance
Dr. H S. ABZAL BASHA*
*Assistant Professor, Department of Management Studies,
G. Pullaiah College of Engineering & Technology, Pasupala (V), Kurnool -518452, A.P
Email: afzalphd.skim@gmail.com, Mobile: +91 9703757372
----------------------------------------------------------------------------------------------------------------
Abstract
“Communication-the human connection,
is the key to personal and professional success” - Paul J. Meyer
Now-a-days Indian banking sector is being considered as one of the most glorious,
innovative service industry that has witnessed constant growth over the past three decades.
Indian banking industry has a vital role in promoting public lending and public savings, and
is widely recognized as a significant factor for the economic development of the country. The
Indian banking industry is expected to be among the top 10 global markets in terms of value
by 2025, strengthen by increasing domestic demand. In today’s competition business
scenario prompt information plays a vital role in supporting the employees to make quick and
suitable decisions. Effective communication motivates and directs the employees towards
their means. Employees who are well allied with right communication system are more
positive to contribute and can perform more effectively. This also converts into better
customer experience and in turn, leads to stronger financial performance by the firm and
overall economic growth. The present paper aims to decisively analyze and interpret the role
of Organizational Communication System in SBI and ICICI bank and its impact on employee
and organizational performance.
Keywords: Organization Communication, Economic Growth, Organisational Effectiveness.
Introduction
In modern organizations, communication has become as an indispensable factor for
the overall organizational execution and success. The way the organization communicates
with its employees is reflected in morale, motivation and performance of the employees.

Volume 1, Issue 4, October- December (2016), pp. 01-11
2
If employees feel that communication from management is effective, it can lead to
feelings of job satisfaction, commitment to the organization and increased trust in the
workplace.
Communication is significant in the organization for three reasons. First, all the
functions of management such as planning, organizing, leading and controlling involve the
act of communication without which they cannot be performed at all. Next, managers devote
a major portion of their time to the activity of communication. Third, interpersonal relations
and group relations are maintained and develop only through the system of communication.
Communication is the central process through which employees share information,
create relationships, make meaning and “construct” organizational culture and values. This
process is a combination of people, messages, meaning, practices and purpose, and it is the
foundation of modern organizations. With the advent of social media, the number of
communication options has been exploded. As the speed of communication accelerates,
challenges to communicate effectively also increase. Thus, keeping communications accurate
and informative becomes a daily challenge.
Role of Communication: Through, the purposes of communication are;
1. To develop information and understanding which are necessary for group efforts;
2. To foster an attitude which is necessary for motivation, co-operation and job
satisfaction;
3. To discourage the spread of misinformation, rumours, gossips, and to release the
emotional tensions of workers;
4. To prepare employees and workers for a change by giving them the necessary
information in advance;
5. To encourage ideas, suggestions from subordinates for an improvement in the product
and work conditions, for a reduction in the time or cost involved and for the avoidance
of the waste of raw material;
6. To improve labour-management relations by keeping both in contact with each other;
7. To ensure such free exchange of information and ideas that assist all the employees in
understanding and accepting the reasonableness of the status and authority of everyone
in the organization;

3
8. To satisfy such basic human needs as the needs for recognition, self-importance and a
sense of belonging; and
9. To serve as auxiliary functions such as entertainment and the maintenance of social
relations among human beings.
Significance of Communication Systems
Information flows faster than ever before in modern organizations. Even a dismal
stoppage on fast moving operation time can be very costly. There is no universally applicable
communication system. But every individual manager has to tailor their own system
depending on their needs. Communication flows through various channels. These channels
include downward, upward, horizontal and cross-wise. Downward communication is a
system, where information flows from higher level to lower level in the organizational
hierarchy. Here, information flows from superior to subordinate. In upward communication
system, information flows from lower level to upper level in the organizational hierarchy.
Thus, in this structure information flows from subordinate to superior. In horizontal
communication system, information flows between the peers. But in cross communication
system, information flows vertically and horizontally among all the employees in the
organization.
Methods to improve Effective Communication
Effective communication refers as sending the right information to a right person at
the right time to make timely decisions. Effective communication helps to improve healthy
working environment in the organization. Management has to use the following methods to
improve the effectiveness of communication in their organizations.
1. Managing by Walking Around
2. Apply the Open door Policy
3. The Ombudsman Position
4. An Empowerment Strategy
5. Participative Management
6. Counseling, Attitude Surveys and Exit Interviews
7. The Grievance Procedure
8. E-mail

4
Interpersonal Communication
The interpersonal communication refers transfer of information from one person to
another. The purpose of interpersonal communication is to effect behavioural change by
incorporating psychological processes (Perception, Learning and Motivation) and language.
Getting feedback and providing feed forward are most important in interpersonal
communication. Effective communication highly depends on effective feedback. Both formal
and informal networks should be used for effective feedback. It makes communication two-
way process.
Characteristics of effective feedback
Intention: The intention of effective feedback is to improve job performance.
Specificity: Effective feedback is designed to provide specific information.
Description: Effective feedback is descriptive rather than evaluate.
Usefulness: Effective feedback provides useful information to employees.
Timeliness: Effective feedback provides information on right time.
Readiness: Employee must be ready to receive information.
Clarity: The recipient must understand the information clearly.
Validity: The information and communication must be reliable and valid.
Need and Significance of the Study
Today’s corporate Management vastly depends on the communication system to
achieve the organizational objectives. Especially communication system gained great
importance in service-oriented institutions like banks. Because, employees in a service
organization have frequent contacts with the customer, they usually serve as representatives
for both the organization and their products and services to the customer at contact point and
play a major role in determining whether a customer would enjoy the experience or turn to
their competitors for better solutions.
Scope of the Study
The present study included to examine the extent of interrelation between the
Organisational Communication, Employee Performance and organizational effectiveness in
banking professionals with respect to SBI and ICICI banks in Rayalaseema region of Andhra

5
Pradesh only. Particularly, I select these two banks because they are giant in public and
private sector in terms of operations, employees and turnover.
Figure-1: Organizational Communication-Organizational Effectiveness
Organizational Communication Employee Performance Organisational Effectiveness
Source: Designed by Researcher
Objectives of the Study
1. To study the role of Communication System on Employee Performance., and
2. To critically evaluate the effect of Communication System on Employee Performance
and Organisational Effectiveness in SBI and ICICI banks.
Hypotheses
 H1: There is a significant difference between the two banks regarding the
Communication System that affect Organisational Effectiveness.
Research Design and Methodology
The present study is an empirical research in nature. The descriptive research
procedure is also used for describing the current scenario in SBI and ICICI bank.
Sources of Data: For the present study, the data has been collected from both primary and
secondary sources. The primary data has been collected by administrating a structured
questionnaire from the non-executive level employees of select SBI and ICICI banks. The
secondary data has been gathered from Internet, books, research articles, survey reports,
newsletters, various journals and magazines.
Sample Size
For the present study 397 non-executives were purposefully selected by applying
convenience sampling and their responses were the form basis for analysis, interpretation and
Development
Oriented
Behaviour
 Organizational Communication Employee Performance
Organisational
Effectiveness

6
empirical findings of the study. The researcher was also obtained the required information
and clarifications from selected non-executives and other authorities of both the Banks to
draw meaningful conclusions.
Table-1
Total Sample Size
Source: Primary Data
Data Collection Instruments
Structured questionnaire method was adopted to collect primary data from employees.
Based on the review of literature on empowerment and detailed discussion in the human
resource consultants, Likert scale was constructed following the procedure developed by
Rensis Likert.
Statistical tolls and techniques
The present study is a qualitative analysis of the responses and results based on
observations. The collected data is analyzed and interpreted based on Weighted Averages,
Correlation coefficient analysis and Independent t-test with the aid of Microsoft Excel
software and Statistical Package for Social Sciences (SPSS-20 Version).
Limitations of the study
The present study has the normal limitations of time, finance and other facilities
usually faced by all research scholars. Apart from this limitation some of the other limitations
were as under;
1. This research study is limited to select commercial Public & Private Banks in
Rayalaseema region only.
2. The results of the research cannot be generalized to other banks like rural, co-
operative and foreign.
Name of the Bank
Employees Strength
(No. of Non-Executives)
No. of Respondents
(Primary Data)
State Bank of India. 1664 247
ICICI Bank 200 150
Total 1864 397

7
3. The accuracy of given information may owe to change by time, work place and
individual factors.
Table- 2: Demographic Profile of SBI and ICICI Bank Employees
Source: Primary data
Table-2 exhibits the response rate for the age, educational qualifications, marital
status and experience of the employees in SBI and ICICI Bank.
Demographic Aspects: In the present study, it has been observed that irrespective of the
banking sector, in both the banks majority of employees are in the age group of 26-30 years.
In terms of the educational qualifications ICICI bank employees are ahead with post
graduation. Though in SBI majority of employees are married, whilst in ICICI bank majority
Demographic Aspects
Bank Wise Respondents
SBI
(%)
ICICI Bank
(%)
Age
20-25 years 3.7 22.0
26-30 years 39.0 68.0
31-35 years 28.9 10.0
36 years and above 28.3 22.0
Total 100 100
Educational Qualifications
Intermediate 2.7 0
Graduation 40.1 12.0
Post Graduation 33.2 78.0
Professional Degree 24.1 10.0
Total 100 100
Marital Status
Married 81.3 34.0
Unmarried 18.7 66.0
Total 100 100
Job Experience
Less than 5 years 26.7 90.0
5-10 years 42.8 6.0
10-15 years 2.1 4.0
15 years and above 28.3 0
Total 100 100

8
of respondents are bachelors. And, it is also found that as in the terms of experience SBI
employees are ahead compared to ICICI bank employees.
Table- 3: Employee Communication and its Outcomes
S.No. STATEMENTS
SBI
(MEANS)
ICICI Bank
(MEANS)
1
I am getting Prompt Information to make Quick and
Suitable Decisions
4.35 3.54
2
I have Observed Boost-up in My Morale with
Present Communication
4.06 3.76
3
If I have a Problem I can Speak Directly to My
Superior
4.21 4.32
4
I am able to give an Open Feedback on My
Subordinates and Superior
3.23 4.10
5
Employee’s Weaknesses are communicating in a
Smooth Manner
3.80 3.74
6
Hierarchy and Cross Culture are the Barriers in
Communication
2.99 3.34
Table-3 portrays the weighted average responses of the statements for employee
communication and its outcome. Employee communication, in the form of prompt
information exchange to take quick and suitable decisions builds employee effectiveness. For
this the rating given by the respondents of SBI and ICICI Bank are 4.35 and 3.54. From the
above weighted responses in SBI and ICICI bank, it’s very clearly observed that the
employees’ morale has become amplified with the present communication practice. For this
ratings given by the respondents of SBI and ICICI Bank are 4.06 and 3.76. The respondents
of both banks said that they have direct access to their superiors. For this ratings given by the
respondents of SBI and ICICI Bank are 4.31 and 4.32.
The above table discloses that both banks respondents agreed that both banks are
maintaining an open feedback system. For this ratings given by the respondents of SBI and
ICICI Bank are 3.23 and 4.10. SBI and ICICI bank are practicing smooth approach to convey
employee weakness. For this rating are given as 3.80 and 3.74 respectively. In both banks, the
respondents have almost identical perceptions about the communication barriers as 2.99 and
3.34. From the overall analysis, the inference can draw that both banks are practicing
identical communication practices. Here, SBI is ahead of providing prompt information to

9
their employees, whilst ICICI bank ahead in offering open feedback and direct accessibility
of superiors.
Table- 4: Correlation Coefficient B/W Communication -Performance Quality
Variables Performance Quality Communication
Employee
Performance
Quality
Pearson Correlation 1 0.057**
Sig. (2-Tailed) 0.000
N 397 397
Employee
Communication
Pearson Correlation 0.057**
1
Sig. (2-Tailed) 0.000
N 397 397
**. Correlation is significant at the 0.01 Level (2-Tailed).
Table-4 discovers that significant value of p (0.001) < 0.01. Therefore, it means, that
there is a significant positive relationship between the employee communication and
performance quality in the banking sector. It means, if an employee gets apt information by
decision time instinctively performance quality of the employee turn into better. Employee
performance quality merely depends upon information flow, feedback, zero barriers and
superior’s support.
According to Kim et al.,1 employee communication is believed to contribute to the
organization are in the areas of relationships, morale, productivity, cost control, teamwork,
safety, change management, reduced turnover and improved market value. Some other
studies also notify that employee communication has been linked to increased innovation,
participation, employee involvement, increased creativity and quality.
Watson Wyatt has founded2 a correlation between high-performing organizations and
strong communication practices. MacDonald et al.,3 also found a positive and significant
relation among employee engagement, improved performance quality, healthy employee
relations, less turnover, higher customer satisfaction and the greater productivity.
Hypothesis Testing-1
H0: There is no significant difference between the two banks regarding the role of

10
H1: There is a significant difference between the two banks regarding the role of
Table- 5: Communication Differences B/W SBI and ICICI Bank
Group Statistics
Bank Name N Mean
Std.
Deviation
Std. Error
Mean
Communication
Differences
Between SBI and
ICICI Bank
SBI 247 4.3529 .72106 .05273
ICICI Bank 150 3.5400 .90212 .07366
Table- 6: Independent Samples Test
Levene's
Test for
Equality of
Variances
t-test for Equality of Means
F Sig. t df
Sig.
(2-tailed)
Mean
Differ
Std.
Error
Differ
95% Confidence
Interval of the
Difference
Lower Upper
Role of Emp.
Communication
& its impact on
Organisational
Effectiveness
Equal
variances
assumed
14.33
0
.000 9.195 395 .000 .8129
4
.8841
.98686
.63902
Equal
variances
that not
assumed
8.974 341.
601
.000 .8129
4
.9059 .99125 .63463
Tables-5 and 6 show that there is a statistically significant difference between SBI
and ICICI bank at 0.01 of the level of significance with regard to communication, including
information flow, feedback and superior support as the significant level (p=0. 00) is less than
0.01. Consequently, from the overall analysis and inferences it is proved that there is no
unanimity and there is a significant difference between the SBI and ICICI bank practices with
regard to employee communication. Therefore, from this it is proved that the formulated
hypothesis H2 is accepted and H0 is rejected. It is evident from the table-5 and 6 and very

11
clear that the SBI employees are getting more prompt information compared to ICICI bank,
which improves employee morale.
Conclusion
The present study confirms that there is significant relationship among Organisational
Communication, Employee Performance and Organizational Effectiveness. In current
scenario both SBI and ICICI banks are using greater communication system, but, SBI
employees have better chances in getting prompt information, right directions, factual
feedback and healthy superior-subordinate relations. However, some of the employees have
stated that lack of open feedback, hierarchy and cross culture as the main obstacles in
communication.
References:
1. Chan Kim, W., and Renee A, Mauborge, R., “Procedural justice, attitudes, and
subsidiary top management compliance with multinationals' corporate strategic
decisions”. Academy of Management Journal, 36(3): 502-526, 1993.
2. Watson Wyatt Worldwide., “Linking communications with strategy to achieve
business goals”. Communication ROI study :Washington, DC, 2004.
3. MacDonald, Brown, and Duncan, A., “Proving communication impacts business
performance: Strategic communication management”, 7(6), 28-33, 2003.
4. Asiya Gul et al., “Role of Capacity Development, Employee empowerment and
Promotion on Employee Retention in the banking sector of Pakistan”, IJARBSS, Vol. 2,
No. 9, ISSN: 2222-6990, September 2012.
5. Gurvinder Kaur;“A Thesis on Employee Empowerment and Organizational
Effectiveness: A Comparative Study of Public, Private and Foreign banks in Some
North Indian States, submitted to Thapar University, Punjab, November, 2013.
6. Chandra Mohan Patnaik& Ashok Kumar Sahoo; “Empowerment of award staff in
regional rural banks through training system: an analysis” Asian Journal of
Multidimensional Research Vol.2 Issue 1, January 2013, ISSN 2278-4853.
7. Quratul-AinManzoor; Impact of Employees Motivation on Organizational
Effectiveness, ISSN 2157-60682012, Vol. 3, No-1.
8. PreetiS.Rawat; Effect of Psychological Empowerment on Commitment of Employees:
An Empirical Study, IPEDR vol.17 (2011), IACSIT Press, Singapore.
9. Angwenyi Callen Nyanchama; Employee Empowerment Practices in Commercial
Banks in Kenya, School Of Business, University Of Nairobi, 2009.
10. Peters Silvia Chigozirim and ElhamMazdarani; The impact of employee empowerment
on service quality and customer satisfaction in service organizations-A Case study of
Lansforsakringar Bank AB, 2008,Malardalen University, Vasteras.
11. David E Bowen and Edward Lawler; The Employment Approach to Service, Center for
Effective Organizations, January, 1994.
12. Decotics and summers; “A Path Analysis of a Model of the Antecodents and
Consequences of Organisational Commitment”, Human Relations, 1987, pp. 445-470.

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ISSN 2393-9702
………………………………………………………………………………………………......
Human Resource Management Practices in Life Insurance Sector
in India
(A Comparative study of Public Sector and
Private Sector Insurance Companies)
K. Ranjith Naik*
Prof. C.N. Krishna Naik**
* K. Ranjith Naik, Research Scholar, SKIM, S.K. University
**Prof. C. N. Krishna Naik, Principal, University Arts College, S.K. University,
Ananthapuramu, A.P., 515003
Introduction:
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together
with banking services, insurance services add about 7% to the country’s GDP. A well-
developed and evolved insurance sector is a boon for economic development as it provides
long- term funds for infrastructure development at the same time strengthening the risk taking
ability of the country.
During April 2015 to February 2016 period, the life insurance industry recorded a
new premium income of Rs 1.072 trillion (US$ 15.75 billion), indicating a growth rate of
18.3 per cent. The general insurance industry recorded a 14.1 per cent growth in Gross Direct
Premium underwritten in FY2016 up to the month of February 2016 at Rs 864.2 billion (US$
12.7 billion).
India's life insurance sector is the biggest in the world with about 360 million policies
which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per
cent over the next five years. The insurance industry plans to hike penetration levels to five
per cent by 2020. The country’s insurance market is expected to quadruple in size over the
next 10 years from its current size of US$ 60 billion. During this period, the life insurance
market is slated to cross US$ 160 billion. The general insurance business in India is currently

13
at Rs 78,000 crore (US$ 11.44 billion) premium per annum industry and is growing at
a healthy rate of 17 per cent.
In life insurance business, India ranked 9th among the 156 countries, for which data are
published by Swiss Re. During 2010-11, the estimated life insurance premium in India grew
by 4.2 per cent (inflation adjusted). However, during the same period, the global life
insurance premium expanded by 3.2 per cent. The share of Indian life insurance sector in
global market was 2.69 per cent during 2010, as against 2.45 per cent in 2000.
The Human Resource Development department has to play a more proactive role in
shaping the employees to flight out the challenges. The insurance companies not only have
to make plans and policies and devise strategies, the actual functionaries have to show
willingness, competence and effectiveness in executing the said policies and strategies. In
commercial organizations like insurance companies, HRD departments have the advantages
of not being excessively burdened with day–to–day problems of running the business or
ensuring profitability of individual transactions. They are in positions to take strategic and
long term view of the competitive advantage of the human resources as well as identify areas
of professional weaknesses to rectify well before any damage takes place in the organization.
Indeed they have the golden opportunity to implement the desired human resources policies
to improve and strengthen the organization to withstand the onslaught of fierce competition
in future.
Based on this perspective, an attempt has been made to highlight the factors which, if
implemented, may lead to substantial transformation of insurance companies to compete in
an environment of risks and uncertainty.
Review of Literature:
The management without any right policy is like “building a house on sand”. It means an
effective management always needs a thorough and continuous search into the nature of the
reasons for, and the consequences of organisation. In line with this, some related earlier
studies conducted by individuals and institutions are reviewed to have an in-depth insight into
the problem and exploring the reformation of insurance business.
In India also several studies have been carried out by Research scholars regarding
consumer satisfaction with services of insurance companies. Mishra, K.C. and Simita Mishra1

14
in their article on “Insurance Industry: Recipe for a Learning Organization” say that like any
other industry, insurance industry in India suffers from one challenge repeatable a hundred
times, that is the constraints of infrastructure. Balasubramanian, T.S. and Gupta, S.P.2
in their
book on “Insurance Business Environment” explain at length the global and Indian pictures
of Insurance systems. The impact of globalization and also liberalization on Insurance
business environment is also discussed analytically to have a clear understanding of the
challenges faced by the insurance industry.
Mitra Debabrata3
in the thesis entitled “Employees and the PSU: A Study of their
Relationship with Special reference to Jalpaiguri Division of the Life Insurance Corporation
of India” opines that the State-owned Undertakings provide all sorts of facilities and
amenities to employees along with usual emoluments. But, their productive rate is low when
compared it with the private sector undertakings. In the Jalpaiguri Division, the employee
relationship with the LIC is clearly discussed and some suggestions are also given in the
thesis. Wadikar Ashok Laxaman4
in his thesis on “Innovativeness in the Insurance
Industries”, confirms a general opinion that innovativeness in every activity alone rules and
dominates the industry. But, at the same time, the practicality and economic justification of
that innovativeness are also to be considered. With the introduction of the latest technology
into the industry, innovativeness in the insurance industry is the order of the day.
Srivastava, D.C. and Srivastava, S.5
in their book on “Indian Insurance Industry–
Transition and Prospects” discuss analytically the financial significance of insurance
industry, its contribution to Indian economy and also the transitory prospects and challenges
of insurance industry due to liberalization and the opening up of the sector to private players.
Ramesh Lal Dhanda6
in his thesis on “Divisional Performance Evaluation of LIC
Business in North Zone” states that the factors affecting policy purchase decisions of the
insured are the risk cover and also the tax benefits. The ratio of management expenses to total
premium income, the productivity analysis for agents, the average percentage of death claims
settled and the overall outstanding claims ratio are found important yard sticks for measuring
the Divisional performance of LIC.

15
Suri Seeta Ram7
in his article on “Life as a Life Insurance Agent – Difficulties,
Challenges and Rewards Galore” describes clearly his personal growth as an insurance agent
while thanking his mentors for honing professional skills. Two basic lessons that almost all
the agents are coerced into learning are ‘Rebate’ and ‘Wrong Medicals’. These are lessons
that are very hard to unlearn. He emphasizes that the purpose of life insurance is not just tax
relief and savings, but a lot more to think and learn.
Krishanaveni, M.8
in her article on “Issues and Challenges of Indian Insurance
Industry” highlights the fact that detailed standards should be issued by the Regulator
covering the constitution and also the methods of calculating reserves and provisions to
ensure that all companies have to follow and adopt policies of capital adequacy standards in
time and in tune with the best of the international practices. She also asserts that an Insurance
Information Bureau should be created with data on underwriting policies, incidents of loss,
claims and insurance brand.
Jaya Prakash Rai, T.9
in his thesis on “Attitude and Behaviour of Life Insurance
Policyholders: A Study with Reference to Dakshina Kannada District” conducts an empirical
study to know the attitude and behavioural patterns of the selected insurance customers of the
District. He suggests that customer expectations towards different attitudinal factors are to be
properly analyzed to formulate a suitable and a necessary marketing strategy for each and
every insurer.
Pooja Bhalla and Gagandeep Kaur10
in their article on “Private Players and Life
Insurance Industry” present that the opening up of the insurance sector to private players has
posed a challenge to the public sector giant i.e. LIC of India. Though, it still enjoys the
dominant position but the proportionate share is decreasing year after year. On the other
hand, the private players with their innovative products, smart marketing, wider distribution
networks and better customer service have been successful in attracting a large number of
customers.
Need for the Study:
A peculiar feature of insurance has been that it needs to be marketed aggressively in order for
the general public to buy. This is more so in ‘not so financially literate markets’ like India.

16
Insurers conceptualise, design, obtain approvals and offer their products. But in order that the
product reaches the intended beneficiary and the beneficiary is convinced to buy, an effective
intermediary – who acts as a bridge always at your Service between the seller and the buyer –
is utmost essential. That is where the industry gives scope for Agents, Brokers, Banks,
Insurance Marketing Firms etc to play an important role. With time, the Regulator has
allowed innovation in the intermediary space whereby Insurance Marketing Firms, Common
Service Centres, restructured corporate agency system for banks, Web Aggregators, Point of
Sale persons etc have come into existence to expand the reach of insurance delivery
mechanisms. Further innovations are also underway like the Insurance Service Centres,
whereby, post-sale services of multiple insurance companies are proposed to be made
available at a single window.
The last one and half decade, which marks the era of reforms in the country for
insurance sector changed the face of the economy far beyond recognition. Technology has
brought in substantial changes in insurance sector in terms of customer services and new
product innovations. The liberalized norms employed by the public sector insurance
companies demonstrated the resolve of the insurance sector to take hard decisions to gear up
themselves in terms of human resources for today’s highly competitive environment.
On the other hand private insurance companies are more dynamic in adopting latest
HR practices. It is in this scenario that a comparative study of HR practices in public sector
and private sector insurance companies has been examined.
The following are the objectives of the study:
 To identify the recruitment methods in Public sector and Private sector insurance
companies.
 To evaluate the selection criteria in Public sector and Private sector insurance companies.
 To assess the rationale of training & development practices in Public sector and Private
sector insurance companies.
 To offer suitable suggestions for the effective functioning of Public sector and Private
sector insurance companies.

17
Methodology
Area Selection for Primary Data: Rayalaseema region of Andhra Pradesh has been selected
for the purpose of primary data collection.
Primary and Secondary Data: To carry out the objectives, the researcher has used both
primary and secondary data. The secondary data and information have been collected from
various sources like business newspapers, journals, magazines, IRDA Reports and
publications etc. Primary data has been collected through structured questionnaire from the
employees and intermediaries of Public sector and Private sector insurance companies.
Data Analysis and Interpretation: The primary and secondary data collected from different
sources have been tabulated and interpreted meaningfully. The information has been
represented using bar charts, pie diagrams, graphical method etc.
Table No. 1 : List of Life Insurance Companies in India
1. Aegon Life Insurance Co. Ltd.
2. Aviva Life Insurance Co. India Ltd.
3. Bajaj Allianz Life Insurance Co. Ltd.
4. Bharti AXA Life Insurance Co. Ltd.
5. Birla Sun Life Insurance Co. Ltd.
6. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
7. DHFL Pramerica Life Insurance Co. Ltd.
8. Edelweiss Tokio Life Insurance Co. Ltd
9. Exide Life Insurance Co. Ltd.

18
10. Future Generali India Life Insurance Co. Ltd.
11. HDFC Standard Life Insurance Co. Ltd.
12. ICICI Prudential Life Insurance Co. Ltd.
13. IDBI Federal Life Insurance Co. Ltd.
14. IndiaFirst Life Insurance Co. Ltd
15. Kotak Mahindra Old Mutual Life Insurance Ltd.
16. Life Insurance Corporation of India
17. Max Life Insurance Co. Ltd.
18. PNB MetLife India Insurance Co. Ltd.
19. Reliance Life Insurance Co. Ltd.
20. Sahara India Life Insurance Co. Ltd.
21. SBI Life Insurance Co. Ltd.
22. Shriram Life Insurance Co. Ltd.
23 Star Union Dai-Ichi Life Insurance Co. Ltd.
24. Tata AIA Life Insurance Co. Ltd.
Source: IRDA website
Sample of the Study: There are currently, a total of 24 life insurance companies in India. Of
these, Life Insurance Corporation of India (LIC) is the only public sector insurance company.
All others are private insurance companies. Many of these are joint ventures between
public/private sector banks and national/international insurance-financial companies. Private

19
life insurance companies in India got access to the life insurance sector in the year 2000.
Most private players have tied up with international insurance giants for their life insurance
foray.
State-owned LIC is the biggest life insurer in the country with an approximate market share
of 52.7%. ICICI Prudential Life is the market leader among private life insurers.

20
A sample of 225 employees / intermediaries from Public Sector Life insurance
company i.e. LIC of India and another 225 employees / intermediaries from 23 Private Sector
Life insurance companies has been selected for the study. The total sample size is 450.
Sampling Technique: Convenient sampling method has been employed for the study.
Table No. 2: Details of Claim Settlement Ratio
S.No List of Life Insurance Companies Claim Settlement
Ratio
1 Life Insurance Corporation of India 98.14 %
2 ICICI Prudential Life Insurance 94.10 %
3 HDFC Standard Life Insurance 94.01 %
4 Max Newyork Life Insurance 93.86 %
5 Star Union Dai-ichi Life Insurance 92.86 %
6 Bajaj Allianz Life Insurance 91.29 %
7 SBI Life Insurance 91.06 %
8 Kotak Life Insurance 90.69 %
9 IDBI Federal Life Insurance 90.34 %
10 PNB MetLife Insurance 90.24 %
11 Sahara Life Insurance 90.19 %
12 Tata AIA Life Insurance 89.68 %
13 Bharti AXA Life Insurance 88.13 %
14 Birla Sun Life Insurance 87.76 %
15 Canara HSBC OBC Life Insurance 86.76 %
16 Aviva Life Insurance 84.01 %
17 Exide Life Insurance 83.16 %
18 Reliance Life Insurance 81.97 %
19 AEGON Life Insurance 81.00 %
20 Future Generali India Life Insurance 74.88 %
21 India First Life Insurance Company
Ltd - India First
73.13 %
22 Shriram Life Insurance 67.69 %
23 Edelweiss Tokio Life Insurance 60.00 %
24 DHFL Pramerica Life Insurance 22.14 %
Source: http://www.policybazaar.com

21
Scope of the Study:
While there are public sector insurance companies, private sector companies, the employees
and intermediaries of LIC of India (only Public Sector Company) and 23 Private Sector
companies were considered for the study. Hence, the scope of the study refers only to 24
companies operating in Life Insurance segment in India.
Awareness about the Job:
Table 3: Awareness about the Job
Mode of
Awareness
Public Sector Private Sector
Sample Size Percentage Sample Size Percentage
Employee
Referral
25 12.32 54 26.60
Notification /
Advertisement
157 77.34 116 57.14
Personal
Enquiry
21 10.34 33 16.26
Total 203 100% 203 100%
Source: Field Survey
It is understood from the above table that, among Public Sector employees a majority
of 77.34% claimed that their source of awareness regarding the job is by Advertisement or
Notification, followed by 12.32% from Employee Referral and 10.34% of the employees said
that it was by Personal enquiry. Among Private Sector employees a majority of 57.14%
claimed that their source of awareness regarding the job is by Advertisement or Notification,
followed by 126.8% from Employee Referral and 16.26% of the employees said that it was
by Personal enquiry.
Number of Stages in Selection Process:
Table 4: Number of stage in Selection Process
No. of Stages
in Selection
2 Stages 183 90.15 184 90.64
3 Stages 9 4.43 19 9.36
4 Stages 11 5.42 0 0
Total 203 100% 203 100%

22
It is understood from the above table that, among Public Sector employees a majority
of 90.15% claimed that they underwent two stages of tests in selection process, 4.43% of the
employees said that it was three stages and 5.42% of the respondents said that they had four
stages in selection process.
Among Private Sector employees a majority of 90.64% claimed that their selection
was done based on two stages and 9.36% of the respondents said they were selected by
conducting tests at three stages.
Basis for Selection:
Table 5: Basis for Selection
Basis for
Selection
Merit 191 94.09 203 100.00
Influence 12 5.91 0 0
Total 203 100% 203 100%
It can be interpreted from the above table that, among Public Sector respondents an
Overwhelming majority of 94.09% claimed that their selection is based on Merit. Where as a
very minority of 5.91% respondents said that they could influence the concerned authorities
in getting selected.
Among Private Sector employees 100% of the respondents felt that their selection was
purely based on Merit. From the above information, it can be interpreted that besides merit,
there are other methods for getting selected in Public sector.
It is suggested that the Public Sector should take measures to erase the opinion among
the employees that there are other considerations for getting selected besides merit.
Offering Training and Development Programmes:
Table 6: Offering Training and Development Programmes
T& D
Programmes
Yes 203 100.00 203 100.00
Total 203 100% 203 100%

23
It can be understood from the above table that, 100% of the respondents from both
Public Sector and Private Sector claim that they have attended Training & Development
programmes.
Number of Training and Development Programmes Attended:
Table 7: No. of Training and Development Programmes Attended
No. of T&D
Programmes
attended
Up to 5 134 66.01 119 58.62
5 to 10 47 23.15 84 41.38
Above 10 22 10.84 0 0
Total 203 100% 203 100%
It can be seen from the above table that, among the respondents from Public Sector,
66.01% of the respondents stated that they have attended less than five Training &
Development programmes, 23.15% stated that it is in between five to ten programmes, and
10.04% of the respondents stated that they have attended above ten Training & Development
programmes. 58.62% respondents from Private Sector stated that they have attended less than
five Training & Development programmes and 41.38% of the respondents said that they have
attended five to ten Training & Development programmes. It is suggested to increase number
of Training and Development programmes based on employee cadre in Private Sector
organisations.
Opinion about the Necessity of the Training:
Table 8: Opinion about the necessity of Training
Opinion
Strongly
agree
137 67.49 36 17.73
Agree 66 32.51 167 82.27
Total 203 100% 203 100%

24
It can be seen from the above table that, among the respondents from Public Sector,
67.49% of the respondents stated that they strongly agree that the Training programmes are
very much required and 32.51% of the respondents agree that Training programmes are
required. Among the respondents from Private Sector, 17.73% of the respondents stated that
they strongly agree that the Training programmes are very much required and 82.27% of the
respondents agree that Training programmes are required.
Limitations of the Study:
In a study of this magnitude, though meticulous care has been taken in each and every aspect
of study, certain limitations are likely to be there in the study.
1. Some respondents were not aware of certain procedures and aspects of Human
Resource Management.
2. The findings cannot be generalized as the study is confined only Rayalaseema Region
and to 24 companies operating in Life insurance segment in India.
3. Few respondents were hesitant to give correct details.
4. There might be a sense of bias crept in answers given by the respondents.
References:
1. Mishra, K.C. and Simita Mishra, “Insurance Industry: Receipe for a Learning
Organization”, The Management Accountant, March, 2000, p.186.
2. Balsubramanian, T.S and Gupta, S.P., “Insurance Business Environment”, IC-12,
Insurance Institute of India, Mumbai, 2000.
3. Mitra Debabrata, “Employees and the PSU: A Study of their Relationship with Special
reference to Jalpaiguri Divison of the Life Insurance Corporation of India”, Ph.D. Thesis
submitted to the Department of Commerce, University of North Bengal, Raja Rammohunpur,
Dist., Darjeeling, 2000.
4. Wadikar Ashok Laxaman, “Innovativeness in the Insurance Industries”, Ph.D. Thesis
submitted to the Department of Management, University of Pune, Pune, 2001.
5. Srivastava, D.C. and Srivastava, S., (Eds.) “Indian Insurance Industry – Transition and
Prospects”, New Century Publications, New Delhi, 2001.

25
6. Ramesh Lal Dhanda, “Divisional Performance Evaluaiton of LIC Business in North Zone”,
Ph.D. Thesis submitted to the Department of Commerce, Guru Jambheshwar University,
Hissar, 2002.
7. Suri Seeta Ram, “Life as a Life Insurance Agent – Difficulties, Challenges and Rewards
Galore”, IRDA Journal, January, 2005, pp.28-29.
8. Krishnaveni, M., “Issues and Challenges of Indian Insurance Industry”, The Management
Accountant, December, 2005, p. 937.
9. Jaya Prakash Rai, T., “Attitude and Behaviour of Life Insurance Policyholders: A Study
with Reference to Dakshina Kannada District”, Ph.D. Thesis submitted to the Department of
Commerce, Mangalore University, Mangalagangothri, 2005.

26
ISSN 2393-9702
………………………………………………………………………………………………......
A Comparative Study on Growth and Performance of Public and Private
Insurance in Indian Insurance Sector
K. Nagaiah MBA., (Ph.D.,)*
E. Pallavi**
T. S. Sanjeev Kumar***
*Asst. Professor, Dept. of MBA, G.Pullaiah College of Engineering & Technology, Kurnool,
Email ID: nagaiahgpcet@gmail.com Mobile No: 9703159439.
**Student, Dept. of MBA, G.Pullaiah College of Engineering & Technology, Kurnool.
***Student, Dept. of MBA, G.Pullaiah College of Engineering & Technology, Kurnool
----------------------------------------------------------------------------------------------------------------
Abstract:
The paper probes into the Indian Economy and observes the features of Insurance
Industry in India based on Strength and Weakness of Insurance Industry in India economy.
Further making literature survey, it is essential to re-look into the Private and Public Players
in insurance industry in India as insurance companies are mushrooming after liberalization.
Further, increase in the foreign direct investment from 26% to 49% shows that insurance
business will grow in India. Thus, in this study, an attempt has been made to make the
comparison of Private and Public firms in Insurance industry in India. The performance will
be evaluated using the Key Performance Indicators (KPIs) in the Insurance Industry such
registered insurers, new policies, penetration and density, number of offices, operating
expenses and incurred claims ratios. The period of study has to be taken from 2010 to 2015.
An attempt is made to clarify the results and generalize them to insurance industry
performance. The study will be carried on making content analysis from the data collected
from various secondary sources such as annual reports of insurance companies, Insurance
Regulatory Development Authority (IRDA) journal, and insurance journal. The statistical
tools used in the study will be descriptive statistics, percentage analysis, growth trends. The
study is explorative, descriptive and empirical in nature.
Keywords: Insurance, Private sector, Public sector, Penetration, Operating expenses,
Density.

27
Introduction
The financial service industry has made significant changes after liberalization and
globalization. Among all, insurance sector is also one of the important sectors in India. The
Private and Public companies in insurance industry in India are rapidly increasing after
liberalization. Further, increase in the foreign direct investment from 26% to 49% says that
insurance business will grow in India but facing hard-hitting competition from rest of the
world and. So, there is an opportunity that there may be some difference observed in between
the private and public insurance sectors. By the entry of private players, the competition is
changing intense. In order to satisfy the customers, there should be competition between the
public and private companies to invent new creations and innovative product features to
attract customers. Hence it is intended, through this study, to make an comparative analysis
between private and public sectors to understand the differences that lies in terms of demand
conditions, competition, product innovations, use of technology, innovative bundling of
insurance with other financial services, aggressive marketing share, and better customer care,
and regulations. Apart from it, in-depth analysis of the performance of insurance business in
India is done with reference to various performance parameters.
Review of Literature
Indian insurance industry has come a long way since the days of private dominance
and Government monopoly in more than a century. The establishment of Insurance
Regulatory and Development Authority in 1999 and subsequent entry of foreign and private
players has changed the entire insurance landscape of the country. Professionalism and the
technologies brought in by the foreign players have forced the hitherto sluggish and
complacent players to devise their strategies from company-business-oriented to customer-
satisfaction-oriented (Hole and Misal, 2013) and that are progressive in nature. But
unfortunately, most of the strategies are far more of survival than growth oriented. Though,
company’s say that utmost care is being taken to maximize customer satisfaction yet the
ground reality is something very different. Customer centric products and strategies are
required because insurance provides social security to both the employees and non employees
(Davar and Singh, 2014). This also increases the competition among them and helps develop
emotional intelligence. Various studies (Lagrange & Roodt, 2001; Slaski & Cartwright, 2002;
Sitarenios, 1998; Rapisarda, 2002 and Donaldo-Feidler & Bond, 2004) conducted abroad and
studies in India (Jain & Sinha, 2005; Sinha & Jain, 2004; Srinivas and Anand, 2012; and

28
Kumar, Mishra & Varshney, 2012) amply suggest that insurance coverage, besides providing
social security, brings in job satisfaction and results in improved emotional intelligence
which in turn improves the organizational effectiveness and organizational commitment.
Many studies also have found out that employee insurance have a positive impact on the job
performance (Jayan, 2006; Bechara, Tranel & Damasio, 2000 and O'Boyle Jr. et al., 2010) of
the employees as performance of employee is crucial to the survival and growth of insurance
industry in India.
Realizing the potential of insurance sector in mobilizing the savings for the productive
use and its ability to provide job security and social safety, Government has taken various
steps to improve its quality, reach and popularity. As a result, the sector was opened to both
the private and the foreign players. It is seen that the process of liberalization, privatization
and globalization has brought in a sea change in Indian economy in general and the insurance
sector in particular. The private players have been penetrating their business more and more
into the rural and untapped areas with more number of policies, higher amount of premium
and changes in the commission expenses and operating expenses (Chand, 2014).With the
growing competition emanating from domestic and international players, there is healthy
competition and a different level of job satisfaction among the employees. But, to compete
and grow, both the employees of private and public sector companies need to work in proper
harmony and co-existence manner. Increased competition has, though brought in satisfaction,
it has also necessitated innovative marketing strategies and customer satisfaction practices,
which are again dependent upon the increased employees job satisfaction and this will be
possible through the social security i.e., insurance (Kaur, 2012).
Besides other sectors, the Insurance sector also plays a vital role in the economic
development of our nation by providing various useful services like mobilising savings,
intermediating in finance, promoting investment, stabilizing financial markets and managing
both the social and financial risk. Despite its added advantages, India still lags behind other
nations and considered as an under-insured country in the world. It has come a long way and
made much strides since 2009, when it had the 18th
position among Life Insurance markets
and 28th
in Non-Life Insurance markets. But, considering its ever growing population and
demographic dividend, it has huge unexplored potential yet to be explored and harnessed.
Even the establishment of IRDA and opening of markets have not helped in the growth of
insurance penetration, except for the period during 2001 to 2009 when it rose from 2.71 per
cent to 5.20 per cent. Since then, it declined to 3.96 per cent in 2012, which is much below

29
the global average of 6.5 per cent of GDP. Density of insurance which rose from 11.50 in
2001 to 64.40 in 2010 also declined to 53.20 in 2012-13 and continues to decline even today.
This is due to the fall in the premium collections and the regulator tightening of the rules and
decline in the household financial savings (Ganesh, 2014).
Liberalization followed the de-tariffing of the non-life insurance products in 2007
which provided impetus and level playing field to the sector bringing in flexibility,
profitability and competitiveness among the players (Sharma and Sikidar, 2014). Even after
opening up the market and de-tariffing, the insurance companies in India are facing various
problems such as paying of outstanding claims which are primarily based on their strong
national franchise, presence, sound financial position, comfortable solvency position,
diversified investment portfolios and strength of reinsurance ties. Along with this, changes
necessitated among the domestic insurance industry due to the intensified competition and
sharp decline in interest rates continues to be the major cause of concern. Besides, emerging
dynamic environment has exerted pressure on their profitability, costs of operations, claim
management and their service standards. Moreover, systemic inefficiencies and the
inadequacy of the tariff structure in certain lines of business have also diluted their strength.
Other than the life insurance and its claim, there are also other issues like under insurance,
technological advancement, data management, underwriting, fund management, actuarial
efficiency special health insurers and the end-to-end service delivery process, etc. These must
be addressed at the earliest to realize the full potential of the insurance.
The literature survey is made to get an insight of the relevance and scope of the
insurance business. It also probes into how characteristics of private and public sectors
influence insurance sector. The review of past studies is also made to find out and summarize
the compilation criteria relevant for insurance industry between public and private
companies.
Statement of the Problem
Insurance industry in India has come a long way from the days of its inception. The
factors that has influenced the trend of insurance companies are i) A social security and
pension system ii) Catastrophes/ risks iii) Changes in customs and social practices iv)
Disposable income v) Healthcare systems vi) Household financial savings vii) Interest rates
viii) Rapid aging of populations ix) Rate of growth of population x) Stronger economic
growth /GDP growth xi) The levels of domestic savings (Gross Domestic Savings).

30
The share of life insurance in gross financial savings of household sector is important
factor for insurance business. As per RBI Annual Reports, in 2003-04, the contribution of
insurance funds to the financial savings was 14.9 per cent in 2003-04, viz., 2.2 per cent of the
GDP at current market prices. Life Insurance Funds, Postal Insurance and State Insurance
contributed 14.5, 0.1 and 0.3 per cent, respectively. The percentage of life insurance funds to
the GDP at current market prices increased from 2.1 per cent in the previous year. In 2004-
05, financial savings of the household sector in the form of Life insurance funds has been
declining from 15.5 per cent in 2002-03 to 12.8 per cent in 2003-04 and further to 12.4 per
cent in 2004-05. Some of the other major components of financial savings were contractual
savings, mainly life insurance funds at 12.8 per cent. In 2005-06, Insurance funds accounted
for 16.0 per cent, of which life insurance funds accounted for 15.1 per cent, postal insurance
0.3 per cent and state insurance 0.6 per cent. Insurance funds accounted for 15.0 per cent; of
which 14.6 per cent was constituted by life insurance funds. As a percentage of GDP,
insurance funds accounted for 2.8 in 2006-07 as against 2.3 in 2005-06. Postal insurance and
state insurance funds constituted 0.2 per cent each. In 2007-08, insurance funds constituted
17.5 per cent of the total gross financial savings of the households in 2007-08. This has
resulted in an increase in the share of insurance funds in the total household savings. The net
financial savings of the household sector reduced to 7.8% in GDP in 2011-12 from 9.3% in
previous year and 12.2 % in 2009-10. The net financial saving of the household sector in
2008-09 is 10.9 per cent of GDP at current market prices, is lower than 11.5 per cent in 2007-
08. It has been declining over the period from 12% in 2009-10 to 8% in 2011-12, while
during same period savings in physical assets by household increased from 13.2% in 2009-10
to 14.3% in 2011-12. The main reason for this is inflation which has resulted in less return or
negative return leaving few savings in hands of households due to hike in general prices. The
growth of household savings remained stagnant in 2010-11. The share of life insurance funds
in total financial savings of household continued to surge in 2010-11. Its share increased to
24.2 % up from 22.6% in 2009-10 and 21% in 2008-09. In 2013-14, the household financial
saving remained low at 7.2 per cent of GDP in 2013-14 compared to 7.1 per cent of GDP in
2012-13 and 7.0 per cent of GDP in 2011-12. During 2013- 14, households increased their
savings in deposits (especially with commercial banks) and small savings, while that in
currency and mutual funds declined. The political environment is not conducive to
constructive change or sound economic management. The dominance of entrenched players

31
makes it possible that the industry will stagnate. The legal framework, bureaucracy and
financial infrastructure worsen the insurance business environment.
Various studies show that no significant change has occurred as far as mobilizing the
national savings by the insurance sector is concerned. According to RBI data, there is upward
trend in the business but no structural change in the trend of the savings in life insurance by
the households to GDP ratio. This can be interpreted that the inflow of foreign capital has not
been accompanied by any technological innovation in the insurance business, which would
have created greater dynamism in savings mobilization.
Further, far from expanding the market for the insurance sector in rural and semi-
urban areas, private companies is more concentrated in urban areas where good market
network, created by public sector companies, and already existed. This is corroborated by the
public sector company’s agent’s ratio of 100:76 in urban and rural India as compared to the
private insurance company’s ratio of 100:1.4 respectively (IRDA Annual Report, 2002-03
and 2013-14). So, the liberalization has not contributed to the expansion of the insurance base
of the economy. So far as the innovative products and the induction of new technology is
concerned, private players have offered nothing as the mortality rates and other principles of
insurance are based on the Indian conditions for Indian policyholders and, in most cases,
renamed LIC products are sold by the private insurance companies as their own products.
This paper attempts to study the following objectives:
1. To observe the number of insurers registered in Insurance Industry in India
2. To examine the growth of insurance business in public sector and private
sector.
3. To analyze the financial and operating performance of public and private
players in Indian insurance sector.
Research Methodology
The objective of the paper is to make the comparison of Private and Public sectors in
the Indian insurance sector. For this, the set of comparison criteria’s are Competition,
Insurance policies, penetration and density, number of offices, operating expenses, etc,. The
performance will be evaluated using the Key Performance Indicators (KPIs) in the Insurance
Industry such registered insurers, new policies, penetration and density, number of offices,
operating expenses and incurred claims ratios. The period of study has to be taken from 2010

32
to 2015. An attempt is made to clarify the results and generalize them to insurance industry
performance. The study is carried on making content analysis from the data collected from
various secondary sources such as annual reports of insurance companies, annual reports of
IRDA, IRDA journals, insurance journals. The statistical tools used in the study will be
descriptive statistics, percentage, growth trends. Data Analysis is done using Ms Excel. The
hypothesis of the study is that there is difference in the growth and performance between the
public and private firms in insurance industry. The study is explorative, descriptive and
empirical in nature.
Data Analysis and Interpretation
Insurance Industry in India
The insurance industry is also an integral part of the financial system. The
overview of insurance industry in India is shown below in Table I:
Table I - Overview of Insurance Industry in India
Nature Insurance Industry
Regulators Insurance Regulatory and Development Authority (IRDA)
Number of insurers
General insurance companies: 29
Life insurance companies: 24
FDI limit 49% (26% earlier)
Largest player in India Life Insurance Corporation of India (For overall sector)
Listing on Indian Stock
None of the insurance companies are listed on Indian stock exchange
as of
Exchange Now
Related Acts
Insurance Act, 1938
Insurance Regulatory Development Authority Act, 1999
Source: Author’s Compilation from various online sources
The above table indicates the position of insurance sector (public and private) in
Indian economy. It shows regulatory body, number of insurers, FDI status and related acts to
form insurance sector in India.

33
Table II - Registered Insurers in India (up to 2015)
Year Type of
Business
Life
Insurance
Non-Life
Insurance
Re-
insurance
Total
2014-15
PSU 1 6 1 8
Private Sector 23 23 0 46
Total 24 29 1 54
2013-14
PSU 1 6 1 8
Total 24 28 1 53
2012-13
PSU 1 6 1 8
Total 24 27 1 52
2011-12
PSU 1 6 1 8
Total 24 27 1 52
2010-11
PSU 1 6 1 8
Total 24 24 1 49
Source: Source: Compiled from Annual reports of IRDA of different years from 2010-11 to
2014-15 Notes: 1. Life insurance 2. Non-life insurance 3. Total number of insurers
Table II shows the growth in registered insurers in India over a period of time. By the
end of 2014-15, the total number of registered insurance companies is 53, out of which 45 are
in private sector and eight are in public sector. 24 life insurance companies and 29 non life
insurance companies are operating in India by the end of March, 2015. In public sector there
is one and only the life insurance company which is LIC and are six in non-life insurance
companies. While in private sector there are 23 life insurance companies and 23 non life
insurance companies operating in India. There is only one re-insurer in India which is
General Insurance Corporation of India (GIC). In public sector, there are two specialised
non-insurance companies named, ECGC (Export Credit Guarantee Corporation of India Ltd)
and AIC (Agriculture Insurance Company of India Ltd.). In private sector, out of 23 non-life
insurance companies, there are five Standalone Health Insurance Companies. They are 1)
Star Health & Allied Insurance Co., 2) Apollo Munich Health Insurance Co., 3) Max Bupa
Health Insurance Co., 4) Religare Health Insurance Co., and 5) Cigna TTK Health Insurance
Co.

34
Table III - New Policies Issued: Life Insurers and Non-life Insurers
Year
Life Insurers Non-life Insurers
Public
sector
Private Total Public Private Total
2014-15
201.71 57.31 259.02 677.82 504.97 1182.79
-78% -22% -100% -57% -43% -100%
2013-14
345.12 63.6 408.72 600.06 424.47 1024.52
-84% -16% -100% -59% -41% -100%
2012-13
367.82 74.05 441.87 689.68 380.56 1070.24
-83% -17% -100% -64% -36% -100%
2011-12
357.51 84.42 441.93 528.14 329.3 857.44
-81% -19% -100% -62% -38% -100%
2010-11
370.38 111.14 481.52 505.78 287.65 793.41
-77% -23% -100% -64% -36% -100%
Table III shows that number of new policies introduced by life insurance companies
and non-life insurance companies in India from 2010-11 to 2014-15 financial year. From
2010-11, the value of new policies issued by life insurance companies under public sector are
decreased from 481.52 lakhs to 259.02 lakhs in 2014-15. Similarly from 2010-11, the value
of new policies issued by public sector non-insurance are increased from 505.78 lakhs to
677.82 lakhs in 2014-15.

35
Table IV- Distribution of Offices by the Life Insurers
Year Insurer Metro Urban Semi Urban Others Total
2015
Private 705 1867 3584
6156
-56%
PSU 375 622 3877
4877
-44%
Total 1083 2489 7461
11033
-100%
2014
Private 676 1926 3591
6193
-56%
PSU 372 617 3850
4839
-44%
Total 1048 2543 7441
11033
-100%
2013
Private 703 1519 4537
6759
-66%
PSU 368 614 2544
3526
-44%
Total 1071 2133 7081
10185
-100%
2012
Private 741 1393 3822 1756
7712
-69%
PSU 365 563 970 1557
3455
-31%
Total 1106 1956 4792 3313
11167
-100%
2011
Private 769 1428 3715 2263
8175
-71%
PSU 363 560 953 1495
3371
-29%
Total 1132 1988 4668 3758
11546
-100%
2010
Private 897 1555 3607 2709
8768
-74%
PSU 347 550 923 1430
3250
-26%
Total 1244 2105 4530 4139
12018
-100%
Table IV shows that Distribution of Offices of Life Insurers in metros, Urban and
semi urban areas. In different years, it shows the spread of offices is more number among
the private sector with compare to public sector. The distribution of offices around the
country is more among the private players.

36
Operating expenses
Operating expenses are occurring by the daily business activities. Low operating expenses
will refers that the management of the company is performing the best and the firm has better
ability to compete with its competitors.
Table V - Operating Expenses of Life and Non-Life Insurers
List of
Years
Life Insurers Non-Life Insurers
PSU Private Total PSU Private Total
2014-15
22395.5 14466.1 36861.6 11181 7527 18708
-61% -39% -100% -60% -40% -100%
2013-14
23760.7 13704.7 37465.4 8791 6312 15103
-63% -37% -100% -58% -42% -100%
2012-13
16707.7 14844.7 31552.4 7791 5516 13307
-53% -47% -100% -59% -41% -100%
2011-12
14914.4 14760.2 29674.6 6563 4609 11172
-50% -50% -100% -59% -41% -100%
2010-11
16980.3 15962 32942.3 6688.6 3931.88 10620.5
-52% -48% -100% -63% -37% -100%
Source: Compiled from Annual reports of IRDA of different years
Note: Values are given in INR Crore, LIC is the only public life insurers
Public firms both in life and non-life insurance sector have higher operating expenses
compared to private insurers. From 2010 to 2015 only the public sector has been taken the
higher position under Life Insurance and Non-life insurance.
Incurred Claims ratio
Incurred Claims ratio is the ratio of all paid claims versus all paid premiums of an
issued insurance policy for a particular account. It is sometimes called Combined Ratio that
is total amount of paid claims /total amount of premium. Table VI shows the Incurred
Claims Ratio of Non-Life Insurers (per cent). From 2010-15 to 2014-15 the percentage
share of Incurred Claims Ratio of Non-Life Insurers was higher for public sector than
private sector.

37
Table VI - Incurred Claims Ratio of Non-Life Insurers (per cent)
Segment Year Fire Marine
Miscellaneous
Motor Health Others Total
Public Sector 2014-15 75.21 57.8 72.38 109.97 55.97 82.09
Private Sector 2014-15 66.19 87.38 81.91 79.17 60.61 79.69
Public Sector 2013-14 80.39 59.3 77.51 106.19 64.55 83.2
Private Sector 2013-14 55.45 71.24 81.4 87.62 63 79.58
Public Sector 2012-13 52.46 76.88 81.26 79.93 55.47 79.56
Private Sector 2012-13 71.55 60.39 92.41 103.21 46.39 84.79
Public Sector 2011-12 67.06 82.07 97.62 77.93 50.31 88.26
Private Sector 2011-12 101.45 84.32 92.41 100.28 55.58 89.27
Public Sector 2010-11 87.86 92.89 111.1 106.31 58.11 97.03
Private Sector 2010-11 75.16 82.12 93.7 85.15 49.76 86.9
Source: Compiled from Annual reports of IRDA of different years
Reinsurance
Reinsurance Ceded is that portion of risk that a primary insurer transfers to a
reinsurer. Reinsurance ceded allows the primary insurer (the ceding company) to reduce its
risk exposure to an insurance policy by passing that risk onto another company (the accepting
company), with the accepting company receiving a premium for taking on the risk. The
accepting company pays a commission to the ceding company on the reinsurance ceded, and
the ceding company can recover part of any claim from the accepting company. 2010-11 to
2013-14, the percentage of Total Reinsurance Ceded is higher in private sector life insurer
than public life insurer.
Findings
Opening of the Indian market of insurance sector for the private and foreign players
has definitely brought in noticeable changes in the insurance industries in India. It has taken a
big challenge to hegemony of LIC in life insurance and the GIC in general insurance with its
subsidiaries in the non-life insurance sector. Market share of these two Government players
have also dropped but not as expected. The global financial crisis has reversed the trend and
the market share of these companies almost remains unchanged, even today. Private players

38
are developed their professionalism, technology, range of products and the operational
efficiency yet it has not reached anywhere near the global standard. Unlike the developed and
other emerging economies, there is dominance of life than non-life insurance in India which
is to be reversed to make it on par with other insurance players. Moreover, the
professionalism and customer centric approach of the private players is yet to bring in
substantial development and break the hegemony of LIC and GIC in Indian insurance
industry.
Overall analysis of data and review of past literature said that though we have
progressed yet there is dominance of LIC in life insurance and the private players in the non-
life domain. Even at present, we should yet to have the specialists in health insurance.
Conclusion
This paper developed a comparative statement of insurance level in Indian insurance
industry that can compare between the status of public and private insurance companies
presently involved in doing insurance business in India. In life and non-life insurance, public
sector firm is doing better than the private sector insurance firm. It may because of their
dominance in market and reliability of customers on the public firms.
References:
1. C. Barathi, D. Balaji and Ch. Ibohal Meitei (2011), “Innovative Strategies To Catalyse
Growth of Indian Life Insurance Sector-An Analytical Review”, Indian Journal of
Commerce and Management Studies, Vol. Ii, Issue IV, May 2011.
2. Chatterjee. P (2009) In Her Article Titled “Private Insurers Command Majority Share of
Life Insurance Market”.
3. Krishnamurthy. S, Jhaveri. Nani, Bakshi. S (July-Sept 2005), Insurance Industry in India:
Structure, Performance and Future Challenges, Volume 30, No. 3, Pg No. 93-95.
4. Kundu. S (2003), “What’s Next In India’s Insurance Market”, Knowledge Digest
Com.,May 12.
5. Murthy.T.N (2009), "Performance Evaluation of Lic", Icfai Journal of Risk & Insurance,
Jan- April 2009, Vol. II.
6. Rastogi. S and Sarkar.R (2006), “Enhancing Competitiveness: The Case Of The Indian
Life Insurance Industry”, Conference On Global Competition & Competitiveness of
Indian Corporate”, IIMK, September 2006.
7. Sumninder Kaur Bawa (2007), ‘Life Insurance Corporation of India: Impact of
Privatization And Performance’, Regal Publication, New Delhi.
8. Tripathi.S (2009), “A Comparative Analysis of Life Insurance Corporation and Private
Insurance Company” Disse rtation Fms Banaras
9. Goswami, P. (2007), “Customer Satisfaction with Service Quality in the Life Insurance
Industry in India,” Icfai Journal of Management Research, vol.2, pg-331-342,
10. Shendey B K and Neelkant Rao, Trends in Insurance Industry in India since 21st
Century,
Southern Economist, December : 2010
11. Hymavathi Kumari, Performance Evaluation of Indian Life Insurance Industry in Post
Liberalization, IJSS, Arts & Humanities, Vol1 No. 1:201

39
ISSN 2393-9702
………………………………………………………………………………………………......
Corporate Social Responsibility: A Tool for Reinforcing the
Societies
B. Ismail Zabiullah*
T. Sanjeev Kumar**
*Assistant Professor, Department of Management Studies, Gates Institute of Technology,
Gooty- 515401, Ananthapuramu Dist. A.P, Email: ismail.gates@gmail.com( M) +91-
9701852327
**Assistant Professor, Department of Management Studies, Gates Institute of
Technology,Gooty-515401, Ananthapuramu Dist. APemail: tsanjeevmba@gmail.c Mobile:
+91-9985379547
--------------------------------------------------------------------------------------------------------------
Abstract:
Corporate social responsibility (CSR) can be described as the continuous commitment by
corporations towards the economic and social development of communities in which they
operate their business. It is a humanistic and moral obligation to do something good for the
betterment of the stakeholder of the company without expecting anything in return. The term
CSR came in to common use in the early in 1970’s and by late 1990s the concept was fully
recognized: people, institutions and all sections of societies started supporting it. CSR holds
very important place in the development scenario of the world today and can pose as an
alternative tool for sustainable development.
The concept of CSR until the 1990’s was purely in terms of philanthropy or charity under it,
welfare programs were organized as part of their charity and through it, they want to convey
their company’s virtues: during 1990’s many corporate leaders have started charitable trust
that provide financial assistance for various worthy causes. in accordance with the change in
the world and human number the impact of activities is being felt in more and more ways
their change has performed implications for business and means that the word of corporate
social responsibility or how business respond to society’s expectations is at the forefront of
this change. With the shifting of CSR paradigm to a stakeholder center approach, practices
at ground level have undergone a radical transformation. Now a day there is a growing

40
concern for socially responsible business behavior because growing consumerism, trade
unionism, public opinion, enlightened professionalization and trusteeship. Allthese have
encouraged corporate firms to inculcate CSR policies in their policies and design programs
that will reinforce the societies. Through CSR activities many corporate houses throughout
the world are addressing the issues which the public sectors have not shown much concern.
in the absence of their reinforcing strategies it is difficult to cope up with the demanding
issues.
Inspite of many CSR initiatives there are some areas which the corporate houses are yet to be
address for fulfillment of reinforcement mechanism. Secondary source of literature on the
topic has been consulted for the development of the concept. Through this paper an attempt
has been made to know the CSR activities of corporate houses and their role in reinforcing
societies.
Key Words: Corporate social Responsibility- Consumerism-Trade Unionism-Public
Opinion-Trusteeship-Reinforcement
Introduction
Corporate Social Responsibility remains embryonic and contestable concept. CSR is
expressed as the voluntary assumption of responsibilities that go beyond the economic and
legal responsibilities of business firm. Ideally, CSR policy would function as a built in self-
regulating mechanism whereby business world monitors and ensure its support to law, ethical
standards and international norms in other words, CSR is the process of continuing
commitment by business to behave ethically and contribute to economic development. While
improving the quality of workforce, their families and also to the local community, society at
large. In this concept the companies are integrating with social, environmental and economic
concerns in their business operations and have an interaction with their business operations
and have an interaction with their stakeholders on a voluntary basis. The ministry of
corporate affairs along with the Indian institute of corporate affairs has been making efforts to
adoption of responsible governance activities by the corporate sector. Consequently, business
would embrace responsibility towards the employees, stake holders, communities and all
other members of the public sphere. CSR not only addresses the above attributes but also
fights against climate change, sustainable management of natural resources and consumer
protection too.

41
CSR is a form of corporate self-regulation in to a business model. CSR is also known as
corporate conscience, citizenship, social performance, or sustainable responsible business.
CSR act as an activity which can built by self-regulating mechanism where by business
monitor and ensure its activities compare with the spirit of law, ethical standards and
international norms
The concept of CSR began in 1920 and found itself in the spot light after 1990. The exercise
of social responsibility must be consistent with the corporate object of earning a satisfactory
level of profit. It implies a willing to forego a certain measure of profit. In order to achieve
non-economic aids, CSR focused business would proactively promote the public inters by
encouraging community growth and development and voluntary eliminating practices that
harm the public regardless of legality. Driven by the CSR movement, firms, especially MNCs
have sought to positions themselves as good corporate citizens.
New Phase of CSR in India
Ministry of Corporate Affairs has notified that 2% profits spending are made mandatory
under Section 135 and Schedule VII of the Companies Act as well as the provisions of the
Companies (Corporate Social Responsibility Policy) Rules, 2014 (CRS Rules) which has
come into effect from 1 April 2014. Section 135 of the Companies Act provides the
threshold limit for applicability of the CSR to a Company i.e.
Applicability
1. Net worth of the company to be Rs.500 crore or more;
2. Turnover of the company to be Rs.1000 crore or more
3. Net profit of the company to be Rs.5 crore or more.
Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian
companies, but also applicable to branch and project offices of a foreign company in India.
CSR Committee and Policy: Every qualifying company requires spending of at least 2%
of its average net profit for the immediately preceding 3 financial years on CSR activities

42
CSR project are deployed by companies directly while some are deployed by strategically
partnering with credible and professional non profitorganisations.
Through CSR activities many corporate houses around the world are addressing few social
issues where the public sector has not shown much concern. With these activities, they are
trying their level best in filling the gaps between the expected actions and executed ones by
the respective authorities. These activities are acting as a platform for reinforcing the
societies and contributing a lot achieving expected outcome.
Literature Review
The social responsibility is standards and moral activities by a firm can create a positive
rapport between the firm and all its stake holders (Sharma and Mani,2013).
A socially responsible corporation is one that runs a profitable business that takes into
account of all the positive and negative environmental, social and economic affect which
has its impact on society (McDonald and Randle, 2008). The choice of engaging in CSR
activities by a firm depends upon the economic perspective of the firm. Venu Srinivasan
(2007). Highlighted that CSR is more than philanthropy and must not mean giving and
receiving. An effective CSR initiative must engage the less privileged on a partnership
basis. CSR means sustainable development of the community by being partners in their
progress.
S P Kothari & J E Short (2003) emphasized that the importance of social discloser and its
impact on the financial health of the company.
Figure-1
The pyramid of Social Responsibility
Source: MANAG 300 Study Guide (2014-15 Hen

43
Functions of CSR
The function of CSR is for corporations to hold themselves accountable for an ethical, legal
societal and ecological impact of their business activities are practices. CSR practices are
self-monitoring, they doesn’t require laws to behave in a socially responsible manner. The
CSR functions are as follows
a. Ethical functions
b. Social functions
c. Legal functions
d. Ecological functions
1. Ethical function for every organization ethics are one of the most important aspects
in corporate governance and it is an important function in corporate social
responsibly. A company must have internal controls regarding their expected ethical
behavior. Behaving ethically makes that company as a whole impact to their
investors, shareholders and consumers it helps to prevent the conflicts of interest
between earning corporate profits and maintaining the integrity of company goods
and services.
2. Societal function the societal function of corporate social responsibility is to respect
and invest in the communities in which company is operates. In this function
companies are aware of about how the Affect of their products in a local community.
And also, companies are taking necessary actions to return down (diminish) the
negative impact of factors. Such as increased traffics, noise and pollution for the
communities in which they operate as a donating a money to the local charities or
trust
3. Legal function in corporate social responsibility this function leads to encourage the
transparence of company’s business practices and financial reporting. If a company
maintains high level of legal business activities such as to occupational safety and
health administration. It promotes good will towards employee’s. maintaining legal
financial will activities leads to goodwill among investors, shareholders and
government financial report regulatory agencies such as Security Exchange
Commission.

44
4. Ecological function in this function the corporate social responsibility includes not
only in to respect the immediate environment in which the company operates but also
to respect the company’s effect on the global environment. And follow the standards
in a company lead to impact on both local and global environment.
Objectives
1. To Study the CSR practices of selected Indian corporate houses.
2. To Study their role in reinforcing the societies.
3. To identify the unaddressed areas where the reinforcement is essential.
Methodology
The secondary source of literature available on the title has been consulted by the
researchers in order to study, interpreter, state the facts and draw conclusions. Top 4
companies in 4 different sectors are 1. Software 2. Banking 3. Pharmaceuticals 4. Automobile
has been chosen for the purpose of the study. The criteria of selection for the above said
companies are based on its net profits available in P & L account statement as on date.
CSR in India
The evolution of corporate social responsibility in India refers to changes over time in
Indian of the cultural norms of corporation’s engagement of corporate social
responsibility(CSR) with CSR referring to the way that business is managed to bring about an
overall positive impact on the communities, cultures, societies, and environments in which
they operate. The fundamentals of CSR rest on the fact that not only public policy but even
corporate should be responsible enough to address social issues. Thus, companies should deal
with the challenges and issues looked after to a certain extended by the states.
Among other countries India has one of the richest traditions of CSR. Much has been done in
recent years to make Indian entrepreneurs aware of social responsibility as an important
segment of their business activity but CSR in India has yet to receive widespread recognition.
If this goal has to be realized then the CSR approach of corporate has to be in line with their
attitudes toward mainstream business- companies setting clear objectives, undertaking
potential investments, measuring and reporting performance publicly. CSR is not a new
concept in India. Ever since their inception, corporate like the Tata Group, The Aditya Birla
Group, and Indian oil Corporation, to name a few have been involved in serving the
community. Through donations and charity events, many other organizations have been
doing their part for the society. The basic objective of CSR in these days is to maximize the
company’s overall impact on the society and stakeholders. CSR policies, practices and

45
programs are being comprehensively integrated by an increasing number of companies
through their business operations and processes. A growing number of corporate feel that
CSR is not just another form of indirect expense but is important for protecting the good will
and reputation, defending attacks and increasing business competitiveness.
In India, several companies have started realizing that rational move to take up CSR activities
and integrate it with their business process. Corporations are becoming increasingly aware of
their role towards the society. They are responsible bodies that feel a sense of duty towards
the common welfare and the environment. This comes with a growing realization that, as an
integral part of this society themselves, can contribute to its upliftment and empower of the
entire county in turn. Thus, companies now are setting specific departments and terms that
develop policies, strategies and goals which are for their CSR programs and allocate separate
budgets to support them. In the modern era, the new generation of corporate leaders considers
optimization of profits as the key, rather the maximization of profit. Companies conduct
events like health camps, population control measures, support a few sick persons, give some
scholarships, organize a few SHGs, a few sports events, impart trainings for some livelihood
practices without linking them to further growth in the process of conducting CSR. Some
corporate found to work on disability, some on elderly issues, some work on street children.
All these are either time bound projects or institution run activity or supports to some NGOs.
They also meet the deficiencies of government run schemes or programs with an aim to
enhance the quality of the programme. Short term activities are mostly eye washing efforts by
corporate where sustainable development approaches are usually missed.
Table -1
Trends of CSR In India
Phase Period Year Nature of CSR
First Pre-
industrialization
1800 CSR activities were undertaken
in the form of philanthropy with
religious belief
Second Pre-
industrialization
1800-
1914
CSR activities were undertaken
in the form of donations with
social welfare objectives
Third Industrialization 1959-
1980
CSR activities were undertaken
in the form of responsible
behavior with progressive
approach
Fourth Post
industrialization
1980 until
today
CSR activities are being
performed in various forms by
keeping in view multi
shareholders benefit

46
Table – 2
CSR Activities Performed By Top 5 Indian Corporate Houses of Different Sectors
S.No Name of The
Company
Corporate Social Responsibility Initiatives
Software
1
TCS
Adult Literacy Programme, Academic/Institutional Collaboration, Affirmative
Action, Education- Others.
2 INFOSYS Hunger, malnutrition, Poverty, Health care, Education and Rural Development.
3
WIPRO
Education, Primary Health Care and Communities, Ecology & Environment, The
power of Engaged Employees,
4
HCL TECH
Eradicating hunger, poverty and malnutrition, employment enhancing, promoting
gender equality, ensuring Environmental sustainability, protection of national
heritage, training to promote rural sports,
Banking
1
HDFC BANK
Sustainable Livelihood, Sanitation, Education, Skilling, Community Initiatives,
Environmental Sustainability, Go Green
2
ICICI BANK
Education, Health care, Skill development and sustainable livelihoods, Financial
inclusion, Support employee engagement in CSR activities, Capacity building for
corporate social responsibility, Other areas
3
AXIS BANK
Education, livelihood enhancement & Rural Development, medical relief Trauma
care, environmental sustainability, sanitation, Humanitarian Relief, Armed Forces
Veterans, Capacity Building of Personnel and NGO Partners
4
YES BANK
Livelihood security and enhancement (Education, Skills/ Employability training),
Healthcare and Social welfare, Environment Sustainability, Arts/Sports and
culture
Pharma
1
LUPIN
Skill Development, Solar energy in the rural areas, TB eradication, Learn and
Earn’
2 CADILA HEALTH Programs for health care & safety and environment, program for education.
3 TORRENT
PHARMA
Community health care, sanitation and hygiene, education and knowledge
enhancement
4
AUROBINDO
PHARMA
Community empowerment programmes, social welfare programmes,
environmental protection, upliftment of marginalized and underprivileged sections
of society, community health care,
Automobile
1
BAJAJ AUTO
Health care, literacy & awareness program, research activities, national
integration communal harmony, promotion of Indian traditional medicine, hostel
facilities and reading rooms for poor and needy, restoration and beautification of
towns and villages, disaster management and relief activities, livelihood and for
farmers and agriculturalist, promotion of sports.
2
HERO
MOTOCORP
Welfare of disabled persons, health camps for unprivileged sections, eradicating
hunger, poverty and malnutrition, education and employment enhancing vocation
skills, livelihood enhancement projects, gender equality, public library ,
environmental sustainability, protecting national heritage, promoting rural sports,
rural development,

47
Source: Official websites of respective companies.
Table - 3
Unaddressed areas under CSR Initiatives by the Companies in the Study
S.No Less Addressed Area
1 Self-help groups/ micro finance
2 Helping cancer/ chronic diseases of vital organs/
organ donation & HIV affected patents and their
families
3 Distribution of hearing aids, tricycles, artificial
limbs & crunches
4 Creating awareness on Crop insurance, organic
forming, modern forming methods using technology.
5 Continuing education system, libraries for
disadvantaged, women and children in rural and
urban areas.
6 Providing training in nursing, paramedical and allied
areas.
7 Rural electrification through solar, biomass, power
grid
8 Adoption of slums, villages, schools and colleges.
9 Conducting research studies on the local issues
10 Women empowerment, legal cells and counselling
centers
11 Entrepreneurship development and incubation
centers
12 Prevention of native culture art and literature
Source: Observation of the sample
Findings
1. The study identifies that there is a dramatic increase in disclosing of CSR activities by
corporate houses in recent times.
2. CSR implementation and monitoring of CSR policy are in compliance with CSR
objectives and the policies of the company. Companies have well defined separately,
their CSR policies as per the Companies Act 2013.
3. Majority of the companies failed to spend their mandatory 2% of average net profit of
the last three financial years, on CSR activities.
3
TVS MOTOR
Economic development, education, environment, health, hunger, poverty,
malnutrition &health, national heritage, art and culture.
4 ATUL AUTO Education, health & medical care, community at large, environment.

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