AN OVERVIEW OF CSR ACTIVITIES PERFORMED BY HDFC BANK

INTRODUCTION:

HDFC Bank (Housing Development Finance Corporation) is an Indian banking and financial
services company headquartered in Mumbai, Maharashtra. It has about 87,555 employees and
has a presence in Bahrain, Hong Kong and Dubai.  HDFC Bank is the first largest private bank in
India as measured by assets. It is the largest bank in India by market capitalization as of February
2016. It was ranked 69th in 2016 BrandZTM Top 100 Most Valuable Global Brands.

CSR Policy Statement /Vision:

The Bank’s CSR mission is to contribute to the social and economic development of the
community. Through a series of interventions the bank seeks to mainstream economically,
physically and socially challenged groups and to draw them into the cycle of growth,
development and empowerment. At the core of this is its commitment to reach out to
marginalized communities through its Sustainable Livelihood Initiatives. The Bank’s strategy is
to integrate its activities in community development, social responsibility and environmental
responsibility and encourage each business unit or function to include these considerations into
its operations.

CSR Committee:

The Bank will institute a CSR Committee of the Board consisting of three or more directors
including at least one Independent Director. The Committee will meet at least three times in a
year.The following shall be the terms of reference of the Committee.

 To formulate the Bank’s CSR strategy, policy and goals

 To monitor the Bank’s CSR policy and performance
 To review the CSR projects/initiatives from time to time
 To ensure legal and regulatory compliance from a CSR viewpoint
 To ensure reporting and communication to stakeholders on the Bank’s CSR
projects/initiatives

Consistent with the above, the CSR Committee of the Board currently has the following
members:

1. Mr. Umesh Chandra Sarangi, Chairman (Independent Director)

2. Mr. Bobby Parikh (Independent Director)

3. Mr. Partho Datta (Independent Director)

4. Mr. Aditya Puri

5. Mr. Paresh Sukthankar

6. Mr. Malay Patel (Independent Director)

CSR activities HDFC Bank’s:

 HDFC Bank’s social responsibility is to support communities which can become sustainable in
the long run. With Sustainability as one of the Bank’s core values, it endeavours to develop
strategies which help achieve growth and empower marginalised communities.

CSR Programs/Projects:

The Bank is highly supportive of the involvement of its employees in its CSR initiatives and in
community activities/charities of their choice, and will therefore proactively engage with
employees and other key stakeholders to solicit their active involvement in the Bank’s CSR
programs.

To provide a focused and structured approach to the program, the Bank will focus its support and
CSR spends on specific pre-determined causes and areas of intervention as outlined in the
Annexure to the policy. The CSR Department would put up to the Committee appropriate details
of proposed projects including implementation year, modalities of execution in the areas/sectors
chosen, implementation schedules for the same etc. The CSR Committee will consider and
approve (in line with the guidelines given below), CSR projects/programs to be undertaken
during the year.

a) The Bank will ensure that its CSR projects are non-discriminatory in nature and do not have
any restrictive political or religious affiliations.

b) The programs/ projects will be within the areas recommended / listed by the CSR Committee
and mentioned in the Policy.

c) The programs/ projects will be beyond business as usual.

d) The programs/projects will be implemented within the country and preferably in areas where
the Bank has its presence.

e) The Bank will actively consider Programs/Projects that have been identified by employees and
also those where employees are directly involved through volunteering efforts

f) Programs/Projects that integrate business models with social and environmental priorities and
processes in order to create shared value will be encouraged.

g) The Bank will consider Programs/Projects closely linked with the principles of sustainable
development.
 h) Programs/Projects should not be exclusively for the benefit of employees of the company or
their family members or those that are conducted /undertaken exclusively in pursuance of the
normal course of business.

i) Any surplus, generated out of the CSR activities of the Bank, will be ploughed back to the
CSR Initiatives of the Bank.

IMPROVING ACCESS:

RURAL OUTREACH:

In 2015-16, the Bank has reached a market spread of 4,520 branches and 12,000 ATMs across
2,587 cities and towns in India, which is an increase from 4,014 branches and 11,766 ATMs
across 2,464 cities in 2014-15. The Bank’s focus on semi-urban and under-banked markets
continued, with 55 per cent of total branches in such areas, an increase from 52 per cent in the
previous year.

Pradhan Mantri Jan Dhan Yojna (PMJDY):

PMJDY is the National Mission for Financial Inclusion by ensuring access to financial services:
Banking/ Savings and Deposit Accounts, Remittance, Credit, Insurance and Pension. In line with
the Digital India Initiative and PMJDY, the Bank is making these basic banking facilities
available through Aadhaar and Rupay Card enabled micro-ATMs (compliant to Unique
Identification Authority of India) at every Bank Mitra or Business Correspondent location. In
addition to this, the Bank is also focusing on the “J-A-M” (Jandhan, Aadhaar, Mobile) trinity, to
ensure holistic coverage of customers and provide easy access through digital channels. This is
to ensure Government benefits reach the end-customer. As on March 31 2016, the Bank opened
15.8 lakh PMJDY accounts.

Multi-function Terminals (MFT):

The Bank has developed a unique solution to improve the efficiency of dairy supply chain. This
innovative solution integrates a milk collection system with cash dispensing machines/ATMs
called Multi-Function Terminals (MFT) or Milk-to-Money ATMs.

 Agriculture Support Kisan Gold Card (KGC):

one of the Bank’s major rural projects is aimed at aiding farmers by providing them with loans
for purchase of agricultural equipment, bullocks carts, besides funding land development and
repair expenses. KGC also enables farmers to meet their expenses towards education, weddings
and other occasions. Apart from easing credit requirements, the Bank also provides free of cost
Personal Accident Insurance cover of ` 2 lakh. An add-on to this, is the Bank’s Kisan Gold Card
Tez, which provides loans to farmers within three days while Kisan Turant enhances the loan
amount within seconds at an ATM or any branch. 2015-16 witnessed the issuance of over 65,000
KGCs across the nation.

HDFC Bank to develop 1,000 villages under CSR by FY'19:

 HDFC Bank today said it aims to transform lives in 1,000 villages by March 2019 as part of its
corporate social responsibility (CSR).

Under the Holistic Rural Development Programme (HRDP), the bank has already empowered
750 deprived villages across the country in the last two-and-half years. The latest village in this
chain is Umpathaw in the state.

"The bank has a board mandate to cover 1,000 such villages by March 2019. This initiative has
so far impacted the lives of over 10 lakh people in 16 states across the country," HDFC Bank
Deputy Managing Paresh Sukthankar said here.

HRDP seeks to better life in villages by focussing on improvements in five areas like education,
water and sanitation and financial inclusion.

The bank claimed that 550 inhabitants of Umpathaw now have access to potable water and a
smart school with clean toilets.

"At HDFC Bank, we believe that for India to achieve inclusive growth, our villages must grow in
tandem with cities. Through HRDP, we are doing just that by creating sustainable communities
in remote pockets of the country," he said.