This document summarizes an empirical study on corporate social responsibility (CSR) of commercial banks in central Tamil Nadu, India. The study analyzed CSR activities of 6 commercial banks through interviews with 150 branch managers. It found that banks primarily focused on education and healthcare CSR activities. Most banks allocated at least Rs. 5 lakh annually for CSR. The study found no significant associations between bank type, location, or age and number of CSR activities conducted. It concluded that while banks in the region are conducting CSR activities beyond regulatory requirements, they could further improve CSR performance to meet community needs and expectations.

1. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol.7, No.4, July-August 2017
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An Empirical Study on Corporate Social Responsibility of Commercial Banks with Special Reference to
Central Tamilnadu
Dr.P.Marishkumar
Associate Professor
Department of Management Studies
VMKV Engineering College
Salem-636308, India
Abstract
Corporate social responsibility (CSR) is a commonly used model in recent years, particularly after companies’ act 2013. But CSR
actions and its calculated values in policy formulation for an banking industry may differ from other industries. The significance of
essential mechanism of CSR is different for all companies and this is the important cause that one industry thinks more accountable for
the environmental issues although another industry thinks like to invest in social issues. The motive of this research article is to study the
importance of CSR in Indian banking industry and how it is unlike in association to other industries even in the same sector. Content
analysis was done to achieve this objective. It seems that banks feels more responsible for social issues and financial inclusion is the
central part to fulfil their social responsibility while environmental issues remain unaddressed by most of them.
Keywords: Corporate social responsibility (CSR), content analysis, banks in India, association, CSR in Indian banking industry
I Introduction:
Social responsibility of business is not new to our
nation. In previous years, whenever was famine, the
leading business executives of the area would
literally throw open their go downs and treasure and
chest to provide food and other assistance to the
needy. Social responsibility represents moral
obligation of a business towards social development
and requires resources for solution of social
problems & n activity of social welfare. It
emphasizes of social dimensions of business
activity in which it makes contribution toward s
improvements in the quality of life. Banks plays an
important role in economics through transforming
money by space and scale. Banks concentrates the
quantitative and qualitative techniques in corporate
governance. The experts of this field should
combines business reasons with ideological reasons.
Commercial banks as funding agency advertisers
with requisite expertise have a comparative
advantage to promote socially and environmentally
sustainable business that will decide the
development and direction of the economic
condition of our nation.
A. Importance of the study:
Business is an integral part of the society. It makes
use the resources of the society for its functioning.
Therefore the business expected to discharge its
duties and responsibilities in enhancing the welfare
of the society. The concept of social responsibility
is that the profit is the primary function the
business, the business must be ran the wide ground
of what is the best for the community and the
society at the maximum contribution. Banking is the
service oriented business which touches the lives of
millions of the people. A potent force can be

2. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
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brought the socio economic transformation in the
country. The commercial banks is providing
service only in the major cities and town to the
needs of industries nand big business who could
offer various securities and such banks called as
class banks. In order to make the banks more
response to the need of the society,14 commercial
banks were nationalized in the year of July1969.
Since there is a structural and qualitative change in
the profile of commercial banking concepts.
B. Objectives of the study;
• To study the importance of the social
responsibility in commercial banks.
• To study the various services offered by the
select commercial banks in central
tamilnadu.
• To assess the various social responsible key
initiatives taken by commercial banks.
• To analyze the factors influencing the social
activities of the commercial banks
II. Research Methodology;
1) Sampling Design
This study is confined to the branch
managers of the select commercial banks in central
tamilnadu. There are 19 select commercial banks in
central tamilnadu and these select commercial
banks are considered the universe of the study. In
the stage, by adopting quota sampling, 25
respondents are selected from each commercial
bank. The sampling details are given in the
following table.
TABLE 1
SAMPLING DISTRIBUTION
Name of the Hospital
No. of
Samples
State bank of India 25
Indian bank 25
Canara bank 25
Indian overseas bank 25
ICICI 25
HDFC 25
Total 150
Type of Bank Number of Bank Percentage
Public s ector 4 66.67
Private s ector 2 33.33
Total 6 100
Banks are: SBI, Indian, Canara Bank, Indian
overseas bank, ICICI and HDFC bank.
2) Tools for Data Collection
This study is empirical in nature based on
survey method. The first-hand information for this
study was collected from the offices of the select
commercial banks in central tamilnadu. As an
essential part of the study, the primary data were
collected from 150 branch managers with the help of
interview schedule for a period of 6 months. The
secondary data were collected mainly from journals,
reports, books, internet and records.
3) Framework of Analysis
In order to study the social responsibility of
commercial banks, various statistical tools such as
chi square test, student t test, paired comparison t

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test, analysis of one-way variance, co-efficient of
variation, discriminant function analysis, multiple
regression analysis and percentage analysis were
employed. The chi square test was employed to
measure the association between the satisfaction
level of the patients belonging to different socio-
economic profiles and the social responsibility of
commercial banks. To arrive at possible solutions,
percentage analysis was also employed in this
study.
4) Key Areas of CSR Activities
Various parameters like ownership, major
area of CSR contribution, Publication of business
responsibility report (BRR), Formation of CSR
committee, Publication of separate CSR report or
Sustainability and total CSR amount contribution
were analysed to understand the aptitude of bank.
Key Areas of CSR Activities
Number of
Banks Percentage
Education Facilities 6 100
Healthcare Facilities 6 100
Skill development and training
and development Programme
4 66.67
Environment 3 50
Women empowerment 2 33.33
Assistance during natural
calamities
2 33.33
Financial inclusionion 1 16.66
Development of culture and sports 2 33.33
Energy conservation 1 16.66
Other activities: Assistance to
poor, Donation, etc
2 33.33
III Findings
1. Out of 150 respondents, 67.20 per cent were
male and 32.80 per cent were female. The
predominant age group of the respondents (36
per cent) is 41-50 years. A good majority of the
remaining respondents were distributed in the
age group 31-40 years. 20.80% and 11.60% of
the respondents were distributed in the age
groups upto 30 years and above 50 years
respectively.
2. The highest literacy rate (35.20%) of the
respondents is degree level. 23.60 per cent of
the respondents have got upto H.Sc education
and 22.80 per cent have got Diploma/ITI
education. 11.80 per cent of the respondents
have postgraduate and above qualifications.
3. 18.20 per cent of the respondents are
businessmen, 42 per cent are employed, 21.20
per cent are professionals, 3.40 per cent are
students and housewives, and 15.20% are
agriculturists.
4. 45 per cent of the respondents have monthly
income upto Rs.15000 and 20.80 per cent have
Rs.15001 to Rs.25000 as monthly income. 19.60
per cent of the respondents have monthly
income Rs.25001-35000. About 14.60 per cent
of the respondents have above Rs.35000 as
monthly income.
5. Out of 150 respondents, 20%, 20%, 20%, 20%
and 20% of the respondents belong to SBI,
Indian bank, Canara bank, ICICI, HDFC banks
respectively. 50 per cent of the respondents
belong to the urban area and 50 per cent of the
respondents belong to the rural area.

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6. Out of 150 respondents, 50 per cent are prepaid
service users and 50 per cent are postpaid
service users. 20%, 20%, 20%, 20% and 20% of
the respondents belong to Erode, Namakkal,
Karur, Trichy and Salem respectively. 62.60
per cent of the respondents are married and
37.40 per cent are unmarried.
7. Majority of the banks 68.55 per cent were social
lending activities often. It shows that the banks
are highly interested in taking social
responsibility activities.
8. Most of the banks allotted minimum 5 lakh
rupees for the purpose of carrying out social
responsibility activities.
9. There is no noteworthy association between the
satisfaction level of the respondents belonging
to different genders, age groups, educational
status groups, occupations, monthly income
groups locations, different commercial banks in
central tamilnadu and services of the select
commercial banks in central tamilnadu
10. There is no significant association between
public and private commercial banks on number
of social responsibility activities carry out in a
year.
11. There is no significant association between
urban, semi urban and rural public and private
commercial banks on number of social
responsibility activities carry out in a year.
12. There is no significant association between years
of existence of public and private commercial
banks on number of social responsibility
activities carry out in a year.
13. Female respondents, respondents in the age
group above 50 years, respondents having
ITI/Diploma, professionals, the respondents
whose monthly income is above Rs.35000,
urban respondents, respondents of SBI are more
satisfied with the of the social responsibility
awareness programme in the Salem.
IV Suggestions:
The banks has to take necessary voluntary
initiatives for providing service regarding social
responsibility activities such as social responsibility
programme on various issues , medical programme,
educational awareness programme, blood donation
etc, beyond the compulsion of government by
assisting the sponsor scheme and priority sector
lending.
1. All select commercial banks in central
tamilnadu are advised to execute the social
responsibility initiatives by committee or a
staff to take care of social responsibility
activities.
2. The select commercial banks in central
tamilnadu should provide the awareness
programme of various facilities offered to
rural customers then only the social
responsibility activities would successfully
reaches to the rural customers.
3. The government strongly recommends to the
select commercial banks in central
tamilnadu to start new bank branches in

5. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
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rural areas because the rural people could
not reach the bank branches to avail the
facilities.
4. The RBI or government has to form a
separate board to monitor the select
commercial banks to do the social
responsible activities.
5. The RBI or government has to instruct the
select commercial banks in central
tamilnadu to highly involve the social
responsible activities based on the needs and
expectation of the people.
6. The customers and also the public should be
utilized the social responsible activities
offered by the select commercial banks in
central tamilnadu in effectively.
7. The customers and also the public should
provide their cooperation and support with
the bank executives or authorities for the
purpose of successful execution of social
responsible activities in their area.
V Conclusion:
The banks are considered to be an important
service providing organization in our country which
is facilitates enormous people in the society to
develop them. The current situation has to improve
their performance on the social responsible
activities of select commercial banks in central
tamilnadu. In this regards, The banks has come
across on the social responsible activities of select
commercial banks in central tamilnadu that all the
banks doing some kind of social responsible
activities beyond compulsion of RBI and
government. It is insisted that all the banks has to
take some voluntary initiation to fulfill social
responsible activities of select commercial banks in
central tamilnadu based on the need and
expectations of the customers and also general
public in this area. Thus the select commercial
banks in central tamilnadu is performing their social
responsible activities in effectively therefore need to
put extra effort may be given to the public to set an
example of this region and also rural development.
This social responsible contribution helps to
improve the economic condition of the customers
and develops the growth of our nation.
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