This document discusses corporate social responsibility (CSR) in the Indian banking sector. It provides background on CSR and outlines CSR requirements for private and public sector banks in India. The document then presents data on the CSR spending of various public sector banks (State Bank of India, Union Bank, Punjab National Bank, UCO Bank) and private sector banks (HDFC, ICICI, Axis Bank, Kotak Mahindra Bank) from 2012-2016, comparing actual CSR spending to standard spending requirements. On average, public sector banks met CSR norms to a greater extent than private sector banks.

1. TO STUDY THE COMPLIANCE OF CORPORATE
SOCIAL RESPONSIBILITY IN BANKING SECTOR
• A. Naresh:11302388 Supervisor Name:
• Shivam : 11302970 Dr. Santosh Singh
• Adil Zafar: 11303798 (Associate Professor)

2. WHAT IS CSR????
• CSR is the continuing commitment by business to behave ethically &
contribute to economic development while improving the quality of life of
the workforce & their families ,local communities and society at large.
• CSR is the responsibility of corporations to contribute to a better society and
cleaner environment.

3. CSR IN INDIA
• In the recent decade , CSR has quickly developed in India.
• CSR in India mainly focused on activities with national needs like general
wellbeing ,jobs ,water preservation ,women empowerment etc.
• Set of rules by Department of Public Enterprise (DPE).
• CPSE each year endorse its BOD and make budgetary allotment for CSR
spending for the year.

4. CSR IN BANKING SECTOR IN INDIA
• RBI supported the idea of CSR and guided banks to embrace CSR activities
for reasonable development.
• PRIVATE SECTOR BANKS
• Net worth of Rs 500 Cr or more
• Turnover of Rs 1000 Cr or
• A net profit of Rs 5 Cr in any financial year

5. CSR ACTIVITIES TO BE UNDERTAKEN
• Eradicating hunger and poverty.
• Promotion of education
• Promotion of gender equality and women empowerment.
• Reducing child mortality and improving maternal health.
• Combating HIV AIDS, malaria and other diseases
• Ensuring environmental sustainability.
• Employment enhancing vocational skills.
• Social business projects.
• Contribution to PM National Relief Fund or any set up by Central or State Govt.

6. CSR COMMITTEE
• Recommend the amount to be incurred.
• Monitor the implementation.
• Disclose contents in its reports and website.
• Make sure included policies are undertaken.
• Make sure 2% of avg. previous three years profit is spent in financial year.
• If failed ,need to identify the amount and reason for it.

7. PUBLIC SECTOR ENTERPRISES
PAT OF CPSE in he previous year Range of financial allocation for next FY’s
CSR would be following %of PY’s PAT
Less than Rs 100 crore 3%-5%
Between Rs 100-500 crore 2%-3%
Above Rs 500 crore 1%-2%

8. OBJECTIVES
• To identify major areas of CSR initiatives in Indian Banking Sector.
• To study the compliance of CSR spending as per norms in both private and
public sector.
• To identify and compare the percentage of CSR spending among public and
private banks of India.
• To measure the net impact profit due to CSR spending.
• To Forecast the CSR spending of private and public banks.

9. RESEARCH METHODOLOGY
• Research type- Descriptive
• Data collection- Secondary
• Data analysis tools- Percentage, charts, & Least Square Method
• Time period- 2011-12 to 2015-16
• Samples – Four Private and Public Sector Banks
• APPROACH AND METHODOLOGY

10. ANALYSIS AND INTERPRETATION
• SEGMENT OF CSR SPENDING IN BANKING SECTOR IN INDIA
Parameters State
Bank
of
India
Punjab
Nation
al Bank
UNION
Bank
UCO Bank
Education    NA
Health   NA
Skill
Enhancement
  NA
Livelihood/Fina
nce
  NA
Environment    NA
Women
Empowerment
  NA
Disaster
Management
NA
Sports NA
Poverty/ Rural
Development
   NA
Others    NA
Parameters HDFC ICICI Axis Bank Kotak
Mahindra Bank
Education    
Health    
Skill
Enhancement
   
Livelihood/Fina
nce
  
Environment   
Women
Empowerment

Disaster
Management

Sports 
Poverty/ Rural
Development
   
Others    

11. 0
1
2
3
4
5
6
7
8
9
SBI PNB UNION UCO HDFC ICICI KOTAK AXIS
CSR Spending in No. of Sectors

12. DATA TABLE FOR COMPLIANCE OF CSR
FOR PUBLIC SECTOR
Yea
r Union Bank Punjab National Bank
Turnover
(Cr)
Net
Profit
(Cr)
Actual
CSR
Amt.
(Cr)
Standard
CSR Amt.
(Cr)
% of profit
spent on CSR
Turnover
(Cr)
Net
Profit
(Cr)
Actual
CSR
Amt.
(Cr)
Standard
CSR Amt.
(Cr)
% of
profit
spent
on CSR
2012 23477 1787 NA 17.87 * 40631 4884 NA 48.84 *
2013 27677 2158 0.75 21.58 0.034 46109 4748 3.24 47.48 0.068
2014 32171 1696 3.77 16.96 0.222 47800 3342 2.93 33.42 0.087
2015 35670 1782 13.25 17.82 0.743 52206 3061 3.7 30.61 0.120
2016 35831 1352 6.98 13.52 0.516 54301 (3794) 6.76 -37.94 (0.178)
Avg.
Score 30965.2 1755 6.1875 17.55 0.352 48209.4 2448.2 4.1575 24.482 0.024
Years UCO Bank State Bank of India
Turnover
(Cr)
Net
Profit
(Cr)
Actual
CSR
Amt. (Cr)
Standard
CSR Amt.
(Cr)
% of profit
spent on CSR
Turnover
(Cr)
Net
Profit
(Cr)
Actual
CSR
Amt.
(Cr)
Standard
CSR Amt.
(Cr)
% of
profit
spent on
CSR
2012 15598 1109 NA 11.09 * 120873 11708 71.18 117.08 0.607
2013 17704 618 NA 6.18 * 135692 14105 123 141.05 0.872
2014 19550 1510 3.42 15.1 0.226 154904 10891 148 108.91 1.358
2015 21362 1138 3.13 11.38 0.275 174973 13102 115 131.02 0.877
2016 20157
-
2799 4.23 -27.99 -0.151 191844 9951 143.42 99.51 1.441
Avg.
Score 18874.2 315.2 3.5933 3.152 0.116 155657.2 11951.4 120.12 119.514 1.031

13. NET PROFIT AND CSR EXPENDITURE OF
PUBLIC SECTOR BANKS (2012-16)
2012 2013 2014 2015 2016
UCO 1109 618 1510 1138 -2799
SBI 11708 14105 10891 13102 9951
UNION 1787 2158 1696 1782 1352
PNB 4884 4748 3342 3061 -3794
-6000
-4000
-2000
0
2000
4000
6000
8000
10000
12000
14000
16000
Net Profit (in Crores)
2012 2013 2014 1015 2016
UCO 0 0 0.226 0.275 0.151
SBI 0.607 0.872 1.358 0.877 1.441
UNION 0 0.034 0.222 0.743 0.516
PNB 0 0.068 0.087 0.12 0.178
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
% of Profit Spent on CSR

14. 2012 2013 2014 2015 2016
UCO 0 0 3.42 3.13 4.23
SBI 71.18 123 148 115 143.42
UNION 0 0.75 3.77 13.25 6.98
PNB 0 3.24 2.93 3.7 6.76
0
20
40
60
80
100
120
140
160
Actual CSR Amt. (Crores)
2012 2013 2014 2015 2016
UCO 11.09 6.18 15.1 11.38 -27.9
SBI 117.08 141.05 108.91 131.02 99.51
UNION 17.87 21.58 16.96 17.82 13.52
PNB 48.84 47.48 33.42 30.61 -37.94
-60
-40
-20
0
20
40
60
80
100
120
140
160
Standard CSR Amt. (Crores)

15. DATA TABLE FOR COMPLIANCE OF CSR
FOR PUBLIC SECTOR
Years Axis Bank HDFC Bank
Turnover
(Cr)
Net
Profit
(Cr)
Standard
CSR Amt.
(Cr)
Actual
CSR
Amt.
(Cr)
% of profit
spent on CSR Turnover
Net
Profit
(Cr)
Standard
CSR Amt.
(Cr)
Actual
CSR
Amt.
(Cr)
% of profit
spent on
CSR
2012 27415 4242 51.45 NA * 32530 5167 60.78 NA
*
2013 33734 5179 67.63 24.47 0.472 41917 6726 80.27 NA
*
2014 38046 6218 85.39 42.43 0.682 49055 8478 105.46 118.55
1.398
2015 43844 7358 104.26 123.22 1.674 57466 10216 135.8 194.81
1.906
2016 50360 8224 125.03 137.41 1.670 70973 12296 169.4 305.42
2.483
Avg.
Score 38679.8 6244.2 86.752 81.8825 1.311 50388.2 8576.6 110.342 206.26
1.906
Years ICICI Bank
Kotak Mahindra
Bank
Turnover
(Cr)
Net
Profit
(Cr)
Standard
CSR Amt.
(Cr)
Actual
CSR
Amt.
(Cr)
% of profit
spent on
CSR
Turnov
er
(Cr)
Net
Profit
(Cr)
Standard
CSR Amt.
(Cr)
Actual
CSR
Amt.
(Cr)
% of
profit
spent on
CSR
2012 41045 6465 86.22 63 0.974 7158 1085 11.03 4.09 0.376
2013 48421 8325 104.26 93 1.117 9203 1361 16.42 3.63 0.266
2014 54606 9810 132.94 132 1.345 10167 1503 21.76 11.97 0.796
2015 61267 11175 164 156 1.395 11748 1866 26.32 16.41 0.879
2016 68062 9726 194.84 172 1.768 18996 2088 31.53 17.33 0.829
Avg.
Score 54680.2 9100.2 136.452 123.2 1.353
11454.
4 1580.6 21.412 10.686 0.676

16. NET PROFIT AND CSR EXPENDITURE OF
PRIVATE SECTOR BANKS (2012-16)
2012 2013 2014 2015 2016
HDFC 5167 6726 8478 10216 12296
AXIS 4242 5179 6218 7358 8224
ICICI 6465 8325 9810 11175 9726
KOTAK 1085 1361 1503 1866 2088
0
2000
4000
6000
8000
10000
12000
14000
Net Profit
2012 2013 2014 2015 2016
HDFC 60.78 80.27 105.46 135.8 169.4
AXIS 51.45 67.63 85.39 104.26 125.03
ICICI 86.22 104.26 132.94 164 194.84
KOTAK 11.03 16.42 21.76 26.32 31.53
0
50
100
150
200
250
Standard CSR Amt.

17. 2012 2013 2014 2015 2016
HDFC 0 0 1.398325077 1.906910728 2.483897202
AXIS 0 0.472485036 0.682373754 1.674639848 1.67084144
ICICI 0.974477958 1.117117117 1.345565749 1.395973154 1.768455686
KOTAK 0.376958525 0.26671565 0.796407186 0.879421222 0.829980843
0
0.5
1
1.5
2
2.5
3
% of profit spent on CSR
2012 2013 2014 2015 2016
HDFC 0 0 118.55 194.81 305.42
AXIS 0 24.47 42.43 123.22 137.41
ICICI 63 93 132 156 172
KOTAK 4.09 3.63 11.97 16.41 17.33
0
50
100
150
200
250
300
350
Actual CSR Amt.

18. TO ANALYZE THE ACTUAL CSR SPENDING WITH
STANDARD CSR SPENDING OF PUBLIC BANK
Years Union Bank Punjab National Bank
1% on Net
profit
Actual
CSR Amt.
(Cr)
Differenc
e
(Cr)
1% on Net
profit
Actual CSR
Amt. (Cr)
Differe
nce
(Cr)
2012 2.8 NA 0 48.84 NA 0
2013 3.22 0.75 2.47 47.48 3.24 44.24
2014 3.47 3.77 -0.3 33.42 2.93 30.49
2015 3.95 13.25 -9.3 30.61 3.7 26.91
2016 4.45 6.98 -2.53 -37.94 6.76 -44.7
Avg.
Score 3.578 6.1875 -2.6095 24.482 4.1575
20.324
5
Years UCO Bank State Bank of india
1% on Net
profit
Actual CSR
Amt. (Cr)
Differ
ence
1% on
Net profit
Actual
CSR
Amt.
(Cr)
Difference
(Cr)
2012 11.09 NA 0 117.08 71.18 45.9
2013 6.18 NA 0 141.05 123 18.05
2014 15.11 3.42 11.69 108.91 148 -39.09
2015 11.38 3.13 8.25 131.02 115 16.02
2016 -27.99 4.23
-
32.22 99.51 143.42 -43.91
Avg.
Score 3.154 3.5933 -0.43 119.514 120.12 -0.606

19. TO ANALYZE THE ACTUAL CSR SPENDING WITH
STANDARD CSR SPENDING OF PRIVATE BANK
Years Axis Bank HDFC Bank
2% on
Net
profit
Actual CSR
Amt.
Standard
CSR Amt. Difference
2% on
Net
profit
Actual CSR
Amt.
Standard
CSR Amt.
Differenc
e
2012 85.84 NA 51.45 34.39 103.34 NA 60.78 42.56
2013 103.58 24.47 67.63 35.95 134.52 NA 80.27 54.25
2014 124.36 42.43 85.39 38.97 169.56 118.55 105.46 64.1
2015 147.16 123.22 104.26 42.9 204.32 194.81 135.8 68.52
2016 164.48 137.41 125.03 39.45 245.92 305.42 169.4 76.52
Avg.
Score 125.084 81.8825 86.752 38.332 171.532 206.26 110.342 61.19
Years ICICI Bank Kotak Mahindra Bank
2% on
Net
profit
Actual CSR
Amt. (Cr)
Standard
CSR Amt.
(Cr)
Difference
(Cr)
2% on
Net
profit
Actual CSR
Amt. (Cr)
Standard
CSR Amt.
(Cr)
Difference
(Cr)
2012 121.93 63 86.22 35.71 21.7 4.09 11.03 24.68
2013 166.5 93 104.26 62.24 27.22 3.63 16.42 45.82
2014 196.2 132 132.94 63.26 30.06 11.97 21.76 41.5
2015 223.5 156 164 59.5 37.32 16.41 26.32 33.18
2016 194.52 172 194.84 -0.32 41.76 17.33 31.53 -31.85
Avg.
Score 180.53 123.2 136.452 44.078 31.612 10.686 21.412 22.666

20. LINKAGE OF CSR SPENDING WITH
DIFFERENTIAL IN PROFIT
BANKS PERCENTAGE CHANGE IN PROFIT
PNB 17.87
UNION 85.05
UCO 23.98
SBI 87.84
AXIS 113.84
HDFC 99.04
KOTAK 61.91
ICICI 94.69

21. FORECASTING OF CSR SPENDING USING
LEAST SQUARE METHOD
• Straight line Equation
• y = a + b x
• b = Σ XY / Σ X2
• a = Σy / n

22. FORECASTING FOR THE YEARS 2017 & 2018
BANKS YEAR CSR SPENDING
UNION 2016-17
2017-18
12.88Cr
15.23Cr
PNB 2016-17
2017-18
7.52Cr
8.91Cr
UCO 2016-17
2017-18
5.63Cr
6.7Cr
SBI 2016-17
2017-18
161.04Cr
174.68Cr

23. FORECASTING FOR THE YEARS 2017 & 2018
BANK YEARS CSR SPENDING
AXIS 2016-17
2017-18
177.55Cr
214.9Cr
HDFC 2016-17
2017-18
365.43Cr
495.99Cr
ICICI 2016-17
2017-18
207.5Cr
235.6Cr
KOTAK 2016-17
2017-18
22.38Cr
26.28Cr

24. FORECASTING FOR THE YEARS 2017 & 2018
0 0 3.42 3.13 4.23 5.63 6.7
71.18
123
148
115
143.42
161.04
174.68
0 0.75 3.77
13.25
6.98
12.88 15.23
0 3.24 2.93 3.7 6.76 7.52 8.91
2012 2013 2014 2015 2016 2017 2018
Forecasting Chart of Public Bank's
UCO SBI UNION PNB
0 0
118.55
194.81
305.42
365.43
495.99
0
24.47
42.43
123.22 137.41
177.5
214.9
63
93
132
156
172
207.5
235.6
4.09 3.63 11.97 16.41 17.33 22.38 26.28
2012 2013 2014 2015 2016 2017 2018
Forecasting of Private Bank's
HDFC AXIS ICICI KOTAK

25. FINDINGS AND CONCLUSION
• The study shows that both public and private sector banks are contributing to
CSR but the it is not satisfactory.
• After the introduction of the new Company Act 2013, banks have positively
contributed and participated in the CSR practices.
• It is noticed that out of total contribution toward CSR practices majority
proportion emphasis on education community and health care.
• It is observed that banks are making profits on CSR spending, ie., impact of
CSR spending is more on profitability of the bank which we calculated over
period of 5 years.

26. • The transparency level of private sector is much more than public sector bank
as reports on CSR are easily available for private sector as compare to public
sector.
Eg: UCO and SBI
• From above study Axis bank is making more profit from CSR activities in
private sector and in public sector SBI is making more profit.
• In case of public bank SBI is spending much more among rest of the banks,
similarly in case of private banks HDFC is leading.
• From least square method we had forecasted next 2 year spending on CSR
for the year 2017 and 2018. In which we can see that every bank has an
increasing trend in spending CSR.