VELAMMAL ENGINEERING COLLEGE (AUTONOMOUS), Chennai 600066 DEPARTMENT OF

MANAGEMENT SCIENCES

YEAR:II NAME OF THE STUDENT:

SUBJECT CODE: 19BA6202T SEMESTER: III

SUBJECT NAME: STRATEGIC MANAGEMENTREG.NO:

FACULTY NAME: Miss. PRIYANKA K SUBMISSION DATE:

ASSIGNMENT RUBRIC

Below Approachin At Exceeds

Parameters (100) Standar g Standard Standard Standard TOTAL MARKS
d
75% 90% 100%
50%
1. Direction and
Understanding of Assignment
Topic. (13)
Introduction, objective and
information gathering by analyzing &
understanding the topic.
2. Company Profile
(17)
Identify and present about the
company, what are their main
objective and core competencies.

3. Content Knowledge (30)

Demonstration of Full Knowledge of
the given topic (more than required)
with explanation and elaboration.

4. Mechanism and draw

Conclusions with suggestions to
identify related outcome (25)

5. Quality of Assignment paper

(15)
These errors include spelling,
grammar, word usage, capitalization,
spelling, paragraphing, word use, etc.
 Organization
TOTAL MARKS

NAME OF THE FACULTY SIGNATURE

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 TABLE OF CONTENT
Chapter Contents Page no
Abstract
1 Introduction
Need for the study
Objective of research

Limitation of research
Research methodology

Industry profile
Vision and mission statement
SOWT analysis

2 Implementation process of CSR

HDFC bank
CSR policy

CSR committee
HDFC bank CSR team

CSR in India
Opportunities in banking sector
CSR framework

Parivartan -HDFC bank CSR initiative

3 CSR activities of HDFC bank

Rural development

Parivartan transforms 5 villages in Madhya Pradesh

Drought mitigation in Maharashtra
Skill training and livelihood enhancement
Sustainable livelihood initiative

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Chapter Contents Page no
Employment opportunities

education

ZIIEI

Project Disha

ECSS

Healthcare and sanitation

Changes for childhood cancer in Tamil Nadu

Milk-to-money atm’s

Financial literacy

Digital literacy

Alignment with UN sustainable development goals

Environmental responsibility

Energy management

Renewable energy

Emission and climate change

4 Social impact
5 Annual report of CSR activities
6 Problem faced
7 Solution and conclusion

STRATEGIC MANAGEMENT ASSIGNMENT

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CORPORATE SOCIAL RESPONSIBILITY: A STUDY OF HDFC BANK

Abstract
The concept of Corporate Social Responsibility is in existence since ancient times. Corporate
Social Responsibility (CSR) is getting more attention in the banking sector. The main
purpose of this study is to investigate the opportunities and challenges of corporate social
responsibility in the HDFC bank. It reviews the concept of social responsibility and how it is
useful to sustain in the market. The study aims clearly to make some recommendations for
overcoming the challenges and also make corporate social responsibility more successful for
banks.

Introduction
Corporate social responsibility is a systematic business approach and ethical part of the
organization. It is also referred to as corporate citizenship, sustainable development,
corporate accountability, and corporate shared value. Corporate social responsibility is a self-
regulated and continuous process. It is a concept where the bank decides to contribute to a
better society.

The World Business Council for Sustainable Development defines Corporate Social
Responsibility as the “continuing commitment by business to behave ethically and contribute
to economic development while improving the quality of life of the workforce and their
families as well as of the local community and society at large”.

 Corporate: means doing business for wealth creation.

 Social: means to take care of society or community.
 Responsibility: means accountability towards the welfare or development of the
economy.

Banking sector now a day’s are expected to work ethically and fulfill the social obligation
towards the stakeholders. Stakeholders means customers, employees, suppliers, government,
and society. Corporate Social Responsibility holds the responsibility for corporate actions and
creates a positive impact on the environment. Through Corporate Social Responsibility,
banks can increase long term profit and maintain the relationship with stakeholders, while

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critics argue that Corporate Social Responsibility distracts business from economic
consideration.

There are so many challenges like problems of selecting partners, lack of transparency, lack
of awareness, balancing the urban and rural area, maintain relationship for long term creating
an ethical culture.

Corporate Social Responsibility is a wide network now, as it is not limited to giving land or
charity or some emotional activity. The Companies Act, 2013 has formulated the Companies
Rules, 2014 which gives a legal obligation to the entire corporate sector including banking
sector to fulfil their CSR.

Need for the study

The purpose of this study is to identify the corporate social responsibility activities of HDFC
bank for the rural development of India and the challenges they faced while implementing the
project. And how they implemented those activities.

Objective of Research

1. Understand the meaning of Corporate Social Responsibility.

2. Find out the opportunities through social responsibilities of banks.
3. Identify challenges for banking sectors.
4. Present status of Corporate Social Responsibility.

Limitation of research
There are a lot of public and private banks; but the current study is limited to HDFC bank,
which covers the data of its corporate social responsibilities.

Research methodology
The methodology is the analysis of a particular area of study.

The information captured in this research was received from the branch manager of HDFC
banks. The study was conducted to identify the challenges and opportunities of social
responsibilities in the banking sector.

Industry profile

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HDFC Bank Limited is an Indian banking and financial services company, headquartered in
Mumbai, Maharashtra. HDFC Bank is India's largest private sector bank by assets and by
market capitalisation as of April 2021. It is the third largest company by market capitalisation
on the Indian stock exchanges. It is also the fifteenth largest employer in India with nearly
120,000 employees.

History

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance

Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate
office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union
Finance Minister, Manmohan Singh.

As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764
cities. The bank also installed 430,000 POS terminals and issued 23,570,000 debit cards and
12 million credit cards in FY 2017.[15] It has a base of 1,16,971 permanent employees as of 21
March 2020.[16]

Products and services

HDFC Bank provides a number of products and services including wholesale banking, retail

banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital
products are Payzapp and SmartBUY.

Vision and mission of HDFC:

Vision Statement

"To be the premier financial partner in ensuring sustainable housing and living standards."

Mission

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Committed to provide financial solutions for sustainable living and assist entrepreneurs in
value addition.

SWOT Analysis of HDFC Bank

SWOT Analysis of HDFC Bank focuses on Strength, Weakness, Opportunities, and Threats.
Strength and weakness are internal factors and Opportunities and Threats are external factors.
HDFC SWOT Analysis helps the bank to analyze its market potential and help bank to
formulate strategies.

Strengths in the SWOT analysis of HDFC Bank – HDFC Bank SWOT

Analysis
 HDFC bank has 5326 branches and 14996 ATMs and is the second largest private
bank in India.
 HDFC bank operates in 2825 Indian cities and has more than 800 telephone
banking locations to service customers.
 The bank’s ATM is available in Plus/cirus, Visa Electron/ Maestro, Visa/Master,
and American Express domestic and international cards. That’s also another reason
why the most famous card for shopping and online purchases is HDFC cards.
 In contrast to other private banks, HDFC Bank has a high degree of customer
loyalty.
 HDFC has a low turnover rate and is one of the best places to work in the private
banking industry.
 HDFC has many recognition and awards by various financial ranking institutions
such as Dun and Bradstreet, Financial Express, Euromoney awards for innovation,
Finance Asia country awards, etc., it has won ‘Best Bank’ awards.
 HDFC has large number financial advisors guiding customers for good investment
options.
 Financial position: HDFC Bank has a solid financial position with consecutive
earnings over the last 5 years, along with accumulated income reserves that can be
used to fund potential capital spending.
 Has a broad asset base offering greater solvency.

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  Return on Capital Expenditure: In the past, HDFC Bank was able to effectively
produce positive returns on the capital expenditure it spent on different ventures.
 Trained Workforce: HDFC has a employee base of 104154 permanent full time
employees. HDFC Bank has invested heavily in its workforce training, which has
resulted in it hiring a significant number of professional and motivated workers.
 Has a diverse workforce, with people of many ethnic, racial, cultural and
educational backgrounds who help the organization bring in various ideas and
methodologies to do things.
 Revenue of HDFC Bank is 21 US billion Dollars.
 Has trained and certified competent team workers.
 Entering new markets: Creative teams from HDFC Bank have helped it to come up
with new products and reach new markets. In the past it was successful, in most of
the initiatives it took in new markets.
 Social Media: HDFC Bank has a strong social media presence with over millions
of followers on the three most prominent social networking platforms : Facebook ,
Twitter and Instagram. It has a high degree of customer engagement with low
customer response time on those channels.
 Website: HDFC Bank has a well-functioning and engaging website that attracts a
huge amount of traffic and sales on the internet.
 Product Portfolio: HDFC Bank has a broad selection of products and services.
 HDFC Bank’s geography and location give it a cost advantage in serving its
customers as compared with the competition. HDFC Bank products and services
including retail banking, wholesale banking, auto loans, treasury, personal loans,
two-wheeler loans, loans against property, lifestyle loan, consumer durable loan,
and credit cards. Payz app and Smart BUY are HDFC Bank digital products.

Weaknesses in the SWOT analysis of HDFC Bank – HDFC Bank SWOT

Analysis
 HDFC bank has no good presence in rural markets, where its direct competitor is
expanding in the rural market as ICICI bank.
 In rural areas, HDFC does not enjoy first-mover privileges. With respect to
banking institutions, rural residents are hard-core loyalists.
 HDFC lacks methods for effective marketing, such as ICICI.

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  The bank mainly works on high end consumers.
 Any of the commodity groups in the bank lack performance and have very little
market presence.
 HDFC’s share prices frequently fluctuate, causing investors to feel confused.

Opportunities in the SWOT analysis of HDFC Bank – HDFC Bank SWOT

Analysis
 HDFC banks have stronger criteria of asset quality than government banks, so it is
possible that earnings growth will accelerate.
 Big enterprises and SMEs are rising at a very rapid rate. In terms of managing
corporate salary accounts, HDFC has a strong record.
 HDFC Bank has increased its portfolio of bad debts and, relative to government
banks, the recovery of bad debts is high.
 HDFC has really good overseas opportunities.
 Greater scope due to a good financial role for investments and strategic
partnerships.
Threats in the SWOT analysis of HDFC Bank – HDFC Bank SWOT
Analysis
 The non-performing assets (NPA) of HDFC rose from 0.18% to 0.20%. While it is
a small improvement, it is not a positive indication for the bank’s financial health.
 Non-banking financial firms and banks of the modern era are rising in India.
 The HDFC is unlikely to increase its market share when a significant challenge is
levied by ICICI.
 In order to deal with private banks , government banks are seeking to restructure.
 RBI has opened up to 74% to invest in the Indian market for overseas banks.

Implementation process of CSR

HDFC Bank
HDFC (The Housing Development Finance Corporation) is a private bank. The bank
introduced an AI-based chatbot Eva on all its digital platforms, which helps customers find
information in quick time. HDFC bank drives the holistic growth of communities. It works on
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five distinct areas i.e rural development, promotion of education, skill development,
healthcare and hygiene, and financial literacy. In rural development, alongwith various
NGO’s, it has covered 2.98 lakh houses impacting 870 villages. HDFC has also been working
on various initiatives of the government like MANREGA, Ministry of electronics and
Information Technology.

HDFC believes that a nation truly develops when its community sustains in livelihood.
HDFC started a new initiative named PARIVARTAN which means a step towards progress.
Bank also started ZIIEI zero investment innovation for education initiatives to improve the
quality of education in government schools. Every year, the Bikaner branch of HDFC bank,
organizes blood donation camps in Colleges, and in 2018 they collected 32 units blood from a
college, which was a great initiative towards the health sector. HDFC bank also provides
education to the poor socio-economic society, they established a day boarding school in
village Gharsisar, Bikaner. An event named ‘DAAN UTSAV 2018 GOONJ’ was also
organized, in which the bank employee’s donated clothes and sanitary pads to needy people.

1. Parivartan – HDFC Bank CSR initiative

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 2. HDFC Bank Corporate Social Responsibility is implemented under the aegis of
‘Parivartan’ (the umbrella brand for all its social initiatives). HDFC Parivartan aims
to bring about a transformation in the communities in which the Bank operates
through initiatives in the sectors of Education, Skill training and Livelihood
Enhancement, Health Care, Environmental Sustainability and Rural Development.
3. The CSR Policy (approved by the Board) is driven by the vision of ‘Creating
Sustainable Communities’. The company’s CSR policy and programmes are aligned
to comply with the requirements of Section 135 of the Companies Act, 2013 and are
monitored by a Board-level committee. 

CSR Policy

According to HDFC Bank CSR policy, its CSR mission is to contribute to the social and
economic development of the community. It seeks to mainstream economically, physically
and socially challenged groups in society, and to draw them into the cycle of growth,
development and empowerment.

At the core of this mission are the Sustainable Livelihood Initiatives (SLI) that reach out to
marginalized communities. The company’s corporate sustainability strategy is to integrate its
activities in community development, social responsibility and environmental stewardship in
such a way that encourages each business unit / function to include these considerations into
its operations.

CSR Committee

In compliance with the guidelines of the Ministry of Corporate Affairs, the company has
constituted a Board-level CSR Committee to govern the implementation of the CSR policy.
The HDFC Bank CSR committee monitors the progress of CSR projects on a periodic basis.
The HDFC Bank Corporate Social Responsibility committee comprises:

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

2) Mr. Aditya Puri

3) Mr. Malay Patel (Independent Director)

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4) Mr. Sanjiv Sachar (Additional Independent Director)

HDFC Bank CSR Team 

A dedicated CSR team drives all the CSR programmes with the guidance of senior
functionaries, in particular, the Managing Director/ Deputy Managing Director. The CSR
Committee and CSR team are entrusted with ensuring that the CSR policy is embedded
across the company’s operations. The CSR Department assists in implementation and
monitoring of the CSR projects, under the hands-on supervision of Ms. Ashima Bhat, Group
Head – CSR; and Ms. Nusrat Pathan, Head – CSR.

CSR in India
In 21st-century banking sectors faced many challenges. A strong perception has been
developed in India that banks have to manage a social responsibility to maintain a
relationship with society and for long term sustainability in the marketplace. There are lots of
challenges in the banking sector:

 Lack of awareness of stakeholders.

 Economic pressure and recession.
 Lack of commitment and participation by top management.
 Need to build local capacities
 Lack of consensus implementation of CSR
 An issue of transparency.
 Low management structure
 Lack of clear guidelines about corporate social responsibility.
 Need of proper supervision on (CSR) corporate social responsibility.

Opportunities in the banking sector

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Corporate Social Responsibilities are an opportunity to maintain a relationship with
stakeholders. It also helps to increase the revenue and build an image in the marketplace.
Banks would introduce the new opportunities in banking sector.

 Corporate Social Responsibility can improve the profits.

 Through Corporate Social Responsibility’s banks can effectively communicate with
the targeted audience.
 Corporate Social Responsibility can help in improving the negative image of banks.
 Long term sustainability in the marketplace.
 CSR’s can help to retain the investors.
 Can help creating high performance level of employees.

Corporate Social Responsibility Framework

The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the
Companies Act 2013 as well as the provisions of the Corporate Social Responsibility Policy
Rules, 2014 to come into effect from April 1, 2014.

Private limited or public limited companies have a legal obligation to spend some amount of
profit in social work. Companies should meet any one or more of the following criteria’s:

NET WORTH             Rs 500 crore

TURNOVER             Rs. 1000 crore
NET PROFIT             Rs. 5 crore
Every company needs to spend at least 2% of its average net profit for the immediately
preceding three financial years on Corporate Social Responsibility activities.

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Parivartan – HDFC Bank CSR initiative
HDFC Bank Corporate Social Responsibility is implemented under the aegis of ‘Parivartan’
(the umbrella brand for all its social initiatives). HDFC Parivartan aims to bring about a
transformation in the communities in which the Bank operates through initiatives in the
sectors of Education, Skill training and Livelihood Enhancement, Health Care,
Environmental Sustainability and Rural Development.

The CSR Policy (approved by the Board) is driven by the vision of ‘Creating Sustainable
Communities’. The company’s CSR policy and programmes are aligned to comply with the
requirements of Section 135 of the Companies Act, 2013 and are monitored by a Board-level
committee. 

HDFC Bank CSR and Sustainability Impacting 5 Crore Lives in India

Much before corporate social responsibility(CSR)contribution were made mandatory by the
companies act of 2013,HDFC bank was following board approved targets and contributions
to social causes.

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HDFC bank CSR spend was INR 443.8 crores during the year ending 31 march 2019, which
was better then the financial year of 2018 performance by 20% according to the companies
annual report.

Rural Development
I witnessed the firm’s commitment to rural development when I visited two villages in
Bihar where the HRDP programme is underway. The CSR team is teaching small farmers
organic farming practices, installing solar-powered water pumps, digitising schools and
coming up with customised solutions to each neighbourhood’s concerns, which got the whole
community proactively involved in the bettering the village.

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Holistic Rural Development Programme (HRDP) is the company’s flagship project within
Parivartan. It was developed with the belief that Rural Development is central and significant
to the nation’s economic development. The rural population is predominantly engaged in
agriculture and completely dependent on rainfed irrigation. The programme identifies and
addresses the critical needs of each village adopted as part of the programme. There are
multiple interventions designed in consultation with the village community and other
stakeholders. 

These initiatives are in line with the Adarsh Gaon Abhiyan of the Government of India and
the UN SDGs. The critical needs of the chosen villages are first identified and addressed in
consultation with the village community and other stakeholders. The initiatives are designed
on the basis of their needs and openness. All programmes are continuously monitored and
assessed for performance and inconsistencies if any, in terms of funds or execution is flagged
off. 

HRDP’s various initiatives are in the following areas:

* Improving educational infrastructure

* Promoting quality education

* Healthcare through health camps and awareness sessions

* Construction of individual household sanitation units

* Natural resources management including micro-watershed management, rain water

irrigation, soil and water conservation

* Access to water for drinking and irrigation

* Educating people on renewable energy sources like solar, biogas and biomass

* Promoting financial literacy, job-oriented youth training, creating alternate sources of

livelihood such as livestock management and entrepreneurship activities like embroidery,
knitting, masala making, toy manufacturing etc.

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Parivartan transforms 5 villages in Madhya Pradesh

The Holistic Rural Development Programme (HRDP) was successfully completed in 5

villages in Mandla district of Madhya Pradesh last year. Thanks to this initiative, 824
households now have access to potable water for drinking and farming as well as training in
new and improved agriculture practices.

To address community needs in a sustainable and effective manner in all its HRDP projects,
HDFC Bank corporate social responsibility team has created long-term solutions in
partnership with an NGO and the local community. The beneficiaries of this project included
small farmers, youth, landless labourers, children and women.

The project began on 1st September 2015 and has helped transform Ahmadpur, Surajpura,
Thonda, Salhedanda and Pondi villages of Mandla district in Madhya Pradesh. More than
3,500 villagers who were mostly dependent on agriculture and associated seasonal labour as
their primary source of income, have now found alternate means of sustenance as a result of
the programme.

Drought mitigation in Maharashtra

In November 2018, Govt. of Maharashtra declared some pockets of the state to be drought
affected areas. Stepping up to the opportunity, the bank in partnership with an NGO initiated
a Drought Mitigation and Awareness Drive to be implemented in chosen project villages as
well as adjacent villages.

This included a gamut of activities such as vulnerability mapping, awareness creation, water
management, preventive measures for water-borne diseases and creating livelihood
opportunities.

Water budgeting was done in 65 villages sensitizing more than 11,000 villagers. To enable
groundwater recharge, a total of 87 soil and water conservation structures were created.
Activities included nallah (drain) widening and deepening, constructing earthen dams, check
dams, loose bouldering structures.

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To address the acute issue of water scarcity, water storage tanks were arranged at various
locations. Moreover, existing hand-pumps water distribution channels were repaired to
prevent water wastage through transportation loss and evaporation. Awareness sessions on
water purification methods to prevent water borne diseases were also conducted. 

Water scarcity leads to migration and issues like family and social disorganization. In order
to provide for better job and self-employment opportunities for the youth, the Bank
conducted skill development programme in the villages.

Through this, more than 120 youth were mobilized and approximately 40 were enrolled for
various courses such as hospitality, automobile, welding, masonry, beautician etc.

As part of the Green Ethos Movement’ launched in June 2018, over 48,000 trees were
planted through community mobilisation. One of these project villages Anjanpur from
Ahmednagar districts is also becoming a model village for afforestation.

The Bank partnered with two different NGOs for projects in Jalgaon and Yevatmal districts
of Maharashtra. Both the projects were designed to address water issues in areas chronically
affected by drought. Interventions under these projects have increased water storage
capacities of rivers, dams, wells and ponds.

Moreover, the ground water table level has also increased as a result of bore-well recharge.
This has also increased the area under irrigation and cultivation. For our work in these
villages, the Bank received the ‘Smart Gram Award’ and the ‘Sant Gadgebaba Gram
Swachhata Award’ from the Government of Maharashtra.

Skills Training and Livelihood Enhancement

Skill Training and Livelihood Enhancement programme provides training and imparts
income generating skills, primarily in agriculture and allied areas such as dairy and poultry.
This is focused on people in rural areas, especially young women and youth. This programme
aims to skill individuals, helping them to find local jobs thereby curbing migration.

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Under SLI, the Bank provides both Financial & Non-Financial services. Financial Products/
Services including Basic Savings Bank Deposit Account (BSBDA) which is a “Zero Balance
Account”, Recurring and Fixed Deposits and Insurances are provided to SHG/JLG groups
and their members. Non-Financial services include Credit Counselling, and encouraging
women to take up entrepreneurship activities.

 Employment opportunities for 3,000 youth in Nagpur

In FY 2018-19, HDFC launched a Career Counselling and Skills Training Centre for youth in
Nagpur, to train them on skills necessary to be job ready. Young women from over 180
villages in and around Nagpur joined the first batch of students at the training centre. On
successful completion of the nine-month course, they received certificates from the National
Skills Development Corporation (NSDC), making them eligible for jobs in Retail, Telecom,
and Tourism & Hospitality. 

In addition to the skills training, the Bank has also provided career counselling to over 13,000
students across 65 schools in and around Nagpur to help them pursue appropriate career
opportunities. The youth were not only counselled on career opportunities but also given
personalized career assessment, career toll-free hotline, career guidance booklet, HDFC
Parivartan scholarship booklet and access to job fairs. This programme helps the Bank
contribute to SDG 1 – No Poverty and SDG 8 – Decent Work and Economic Growth. 

 The programme entails:

* Various tailor-made skill and competency building programmes such as job oriented
training and placement

* Capacity building and communication skills

* Upskilling for agricultural and allied practices

* Promoting entrepreneurial activities

* Agriculture techniques and livestock management

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The nationwide programme has benefited over 1 lakh individuals (excluding those trained
under the Sustainable Livelihood Initiative or SLI). As a part of the programme, more than
40,000 youth have received placement- linked skill development training. The company has
provided both on-farm training to upskill farmers as well as placement linked training. The
Bank’s Training Centre in Bhubaneswar provides training to youth and women in hospitality,
tourism, telecom, retail and health care. Over 1900 youth were provided job skilled training
and exposure providing them access to approx. 100 companies and institutions in Odisha. 

Sustainable Livelihood Initiative (SLI)

The Sustainable Livelihood Initiative (SLI) is aligned with SDG 6 (Gender Equality and
women empowerment). The Bank believes that empowering a single woman can empower an
entire family. The Bank guides women from the communities to form Self Help Groups
(SHGs) or Joint Liability Groups (JLGs). These groups are then trained on occupational
skills, financial literacy, credit counselling and livelihood finance in addition to providing
market linkages. 

 Education

Education is the key for developing the economy and transforming an individual’s life.
Hence, Parivartan puts focus on inclusive and quality education for all. The Bank strives to
promote a conducive learning environment in schools.

The Bank’s efforts in the area of education include teacher training, HDFC Bank CSR
Parivartan scholarships and career guidance. It also includes provision of infrastructure
support, such as building toilets in schools and improving classrooms.

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Teacher training provides teachers with alternative teaching pedagogy, improves their soft
skills and promotes innovation. The programmes also focus on providing quality education
through remedial classes, learning camps, special scholarships etc. This programme is in line
with the Sarva Shiksha Abhiyan of the Government of India and SDG 4 (Promoting Quality
Education). Navachar Pustika (Innovations Handbook), is a compilation of innovative
teaching ideas contributed by teachers themselves. These zero cost, high impact ideas are part
of HDFC Bank’s ‘Teaching-the-Teacher’ (3T) programme under #Parivartan. The 3T
programme is run in partnership with Sri Aurobindo Society.

 Three flagship programmes under the theme of Education are:

* Zero Investment Innovations for Education Initiatives (ZIIEI)

* Project Disha

* Educational Crisis Scholarship Support (ECSS)

ZIIEI (Zero Investment Innovations for Education Initiatives)

ZIIEI or Zero Investment Innovations for Education Initiatives seeks to transform education
in government schools across India. It is committed to improving the skills of teachers, which
in turn, benefits the students. 

ZIIEI aims to find ‘the scattered, isolated and unrecognized, but effective solutions’ created
by teachers at grassroots and systematically scales them up to millions of schools through the
‘Navachar Pustika’. Along with this transformational journey, the concept of ‘Innovative
Pathshaala’ was also introduced, where each chapter of the state curriculum is mapped to
innovative ideas that could be used to engage and teach students. A group of teachers have
suggested moving away from traditional ‘Chalk and Talk’ technique of teaching to using
Dramatization, Puppetry to arouse curiosity among students. This enables better
understanding of the topics instead of simply relying on rote.

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 Project Disha

Project Disha is yet another initiative that has helped achieve higher levels in numeracy,
reading and science in the remote and rural areas of India. Project Disha was initiated in 2016
and is currently spread across four states in India; namely Chhattisgarh, Maharashtra,
Madhya Pradesh and Rajasthan. It works with the children in government schools. The
project has been able to provide quality education to about 18,000 children. 

Educational Crisis Scholarship Support (ECSS)

HDFC Bank CSR under its ECSS programme, educates children from economically and
socially disadvantaged groups who are most at risk of dropping out of school due to sudden
financial crisis. The ECSS programme covers students in middle school, high school, as well
as scholars pursuing undergraduate and postgraduate education. ECSS Parivartan
scholarships help students navigate difficult situations without affecting their education. 

Healthcare and Sanitation

In line with Government of India’s National Health Mission, Swachh Bharat Abhiyan and the
SDGs, HDFC Bank Ltd CSR is geared to work towards fostering behavioural change to
improve the Health and Hygiene in India. Since the values of cleanliness and hygiene are best
inculcated in childhood, awareness programmes on healthcare and hygiene are conducted in
schools. The programme focusses on schools as well as communities.

 Core programmes in health and sanitation:

* Community-led sanitation campaigns that promote hygienic conditions in rural areas

through appropriate wastewater and sewage disposal

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* Construction of toilets

* Provision of clean drinking water

* Health camps, nutrition programs, and vaccination drives

* Conducting blood donation drives

Change for Childhood Cancer in Tamil Nadu

HDFC Life joined hands with Cankids Kidscan in the year 2016, to support the cause of
childhood cancer in Tamil Nadu. Families belonging to the economically challenged segment
of the society and incapable of affording cancer treatment for their children, have been the
target beneficiaries under this CSR initiative.

HDFC Life helped set up two dedicated cancer wards – Cankids Hospital Support Units
(CHSUs) in the Institute of Child Health and Hospital for Children at Chennai. These
dedicated wards provide cancer treatment support to children in the form of medical, psycho-
social and nutritional support thereby aiding the children and their families cope with the
disease.

The overarching aim of setting up these dedicated wards is to ensure that the children are not
deprived of appropriate treatment for the disease, thereby reducing the treatment
abandonment rate.

In addition to the wards, a full-fledged accommodation facility – Home Away from Home,
has also been set up which provides complete accommodation support to the families of the
children undergoing cancer treatment. This intervention has aided more than 2,500
underprivileged children till date and counting.

Milk-to-Money ATMs

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Multi-function Terminals (MFTs) popularised as Milk-to-Money ATMs bring transparency
in the milk procurement and payment process. The MFT, like a standard ATM, contains a
cash dispenser that facilitates quick access to payments which greatly benefits many dairy
farmers. As of last year, the Bank has digitized payments at over 1,000 milk co-operatives
spread over 18 states benefiting more than 4 lakh dairy farmers. The Bank facilitates instant
realization of payments for over 1 lakh customers.

Financial literacy for SMEs

The firm has extended its financial literacy programme to the general public as well as SME
entrepreneurs. Under this initiative, HDFC Bank conducts financial literacy camps in various
states to bring SMEs into the traditional banking fold. Advances to the MSME segment as on
March 31st, 2018 stood at INR 89,042.1 Crore while advances to the Micro Enterprises alone
stood at INR 40,644.7 Crore. The Emerging Enterprises and Business Banking Groups cater
to the Micro Enterprises and SME segments respectively.

Digital literacy

The campaign ‘Bank Aapki Mutthi Mein’ was the starting of the digital journey of the Bank.
Digitization within the Bank has certainly given customers a convenient banking experience
while also decreasing the Bank’s carbon footprint by minimizing footfalls and physical
transactions at ATMs and Branches. Digital literacy camps are conducted across villages to
ensure that the rural population are also capacitated with online banking. 

Alignment with UN Sustainable Development Goals

Transitioning towards a low carbon economy is the need of the hour. As a responsible
business, it has been measuring its greenhouse gas (GHG) emissions since 2010, according to
the HDFC Bank sustainability report. Addressing and mitigating environmental concerns also
makes business sense as climate change impacts have the potential to not just impact
operations but also revenues, by impacting lending and investments. 

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HDFC Bank has set a goal of 10% reduction in its Scope 1 and 2 emissions intensity by FY
2021-22. The Bank has aligned itself to the SDGs (Sustainable Development Goals set by the
United Nations for the year 2030) and works towards integrating them into its business
strategy. It is harnessing renewable energy through installed solar panels in its office
premises aligns with SDG 7 – Affordable and Clean Energy.

The Bank ensures responsible consumption of natural resources, complying with SDG 11 and
12 – Sustainable Cities and Communities. Initiatives taken by the Bank towards SDG 12
(Responsible Consumption and Production) include efforts to monitor and reduce energy
consumption, installing capacitor banks and occupation sensors for reducing electricity
consumption and sensor-based faucets in washrooms for water conservation. 

Environmental Responsibility

The Bank’s environmental policy articulates that the large loans disbursed by the Bank, will
first be assessed for environmental and social risks. The projects should comply with the
environmental norms of the land and, should have a plan for implementing and monitoring
environmental initiatives. In FY 2017-18 there were no fines, non-monetary sanctions or
cases brought forward regarding non-compliance with environmental and social laws and
regulations against the Bank. 

Energy Management

In FY 2018-19, the energy consumption per employee was 22.6 GJ (energy intensity, the
energy taken into account is energy consumed within the organization), 16% less than the
previous year. There is a decrease in both the electricity and diesel consumption, this is partly
attributed to a change in methodology and emission factors used in the calculation of
emissions. HDFC Bank has adopted Energy Efficient Management Systems (EnMS) to
improve energy efficiency in its operations and systematically manage energy use.

EnMS and other energy-saving methods were probably the reason for reduction in electricity
usage, despite a substantial increase in the number of employees compared to the previous
year. The Bank records employee travel/ business commute under scope 3 emissions but does
not track/ measure energy equivalent of the same.

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Renewable Energy

HDFC Bank CSR is serious about alignment with SDG 7 (Affordable and Clean Energy). As
on 31st March 2019, the Bank had a cumulative installed solar capacity of 135.5 KWP across
Jaipur, Pune, Noida and Bhubaneswar. The electricity generated from these solar panels in
FY 2018-19 was estimated at 1,62,600 KWh, about 58% more than the previous year,
attributed to the addition of a solar plant at Bhubaneswar. The Bank has been using
renewable energy to power ATMs in areas with a fluctuating power supply. 

Emissions and Climate Change

The Bank understands the criticality of environmental challenges and the benefits of
transitioning towards a low carbon economy. Therefore, in line with SDG 13 which is
undisputedly one of the important focus areas today, there is an urgent need to combat
climate change.

Last year, there was a drop of 11% in absolute combined Scope 1 and Scope 2 emissions
because of EnMS and other energy saving initiatives in the through the Bank offices and
branches. There was a change in methodology and use of emission factors in the calculation
of fuel consumption, contributing to the decrease in emissions.

In order to sensitise its stakeholders on emissions reduction, the company has adopted digital
banking channels, energy efficiency initiatives and paper conservation measures. Emissions
other than Scope 1, 2 and 3 for example SOx, NOx and SPM are not material to the Bank as
it operates in the service sector.

Currently the measurement of coolant leaks as part of Scope 1 emissions are not being
captured; the process for recording the measurement is in progress and will be reported in the
next reporting period. The total amount of distance travelled for the various sectors is
determined to calculate the emissions generated from Business Travel. Responsible Lending
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HDFC Bank Ltd refrains from funding projects that will prove to have an adverse impact on
Environment, Health and Safety (EHS). The bank considers EHS to be an integral part of
overall credit risk assessment and monitoring.

Every project funded has to pass the Bank’s muster in terms of the EHS risk it entails,
potential impact and mitigation measures in place or proposed. All projects which are
financed have the clause on not using child, compulsory or forced labour.

The Relationship Manager (RM) has to report compliance with EHS norms in the Credit
Assessment Memorandum (CAM) both at the time of initial sanction and during the
monitoring process. Such certification is based on information or disclosures provided by the
borrower at the time of initial appraisal and during periodic review of the facilities. The
relationship manager records outstanding EHS issues (if any), and follows them up with the
client.

The bank levies penal interest in case of deviations and, thus, ensures compliance with EHS
norms. If there are significant deviations that could affect the viability of the project, HDFC
Bank reserves the right to either reduce its exposure or recall the loan. Most significantly, the
Bank, as part of its credit policy, requires all projects perceived as carrying high or unusual
EHS risk to be approved by a higher authority. 

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Social impact in 2019 

Annual Report on Corporate Social Responsibility (CSR) Activities

• Foundation for Education and Development (Education)
• Foundation for Promotion of Sports & Games (Development of Indian Athletes)
• Gramalaya Trust (Water & Sanitation)
• Gujarat Mahila Housing SEWA Trust (Water & Sanitation)
• Indian Cancer Society (Healthcare)
• Indian Institute of Human Settlements (Education)
• Indian Institute of Science (Education)
• Jai Vakeel Foundation & Research Centre (Differently Abled)
• ISKCON Food Relief Foundation (Healthcare)
• Jaldhaara Foundation (Water & Sanitation)
• Mobile Creches (multi location) (Healthcare / Child Development)
• Paani Foundation (Water & Sanitation)
• Sampark (Education)
• Shelter Associates (Water & Sanitation)
• Teach to Lead (Education)
• The Bombay Community Public Trust (Community & Child Development)
• The CHILDS Trust (Healthcare)

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• Vandana Foundation (Skilling & Livelihoods)
• Village Social Transformation Foundation (Rural Development)
• Vision Foundation of India (Healthcare)
• Youth4Jobs Foundation (Skilling & Livelihoods)

Problems faced by HDFC bank while implementing the projects

• Communities often lack awareness about health cover needs and the complex situation
of healthcare provision detains them from seeking quality healthcare.

• There is a need to demystify health insurance, healthcare and hospitalization

apprehensions

• They often try pushing a plain vanilla product to the community ignoring the need to
study and develop need-based products. This may often lead to ignoring the opportunity
to pass premium benefits to the end user.

• A better experience results from mechanisms put in place to regularly monitor the
products and services, collection of feedback from different stakeholders and
innovations in policy and claims administration.

• Micro-health insurance initiatives should ideally be integrated within a community

health intervention"

Recommendation
Below are some of the recommendations and solution for improving the Corporate Social
Responsibility and to overcome the challenges:

1. Define your messaging: Don’t strike blindly at different goals. Come up with causes
that resonate with your business culture, research the kind of support they need, then
pick one and stick with it.
2. Involve your customers: Seek the assistance from your website visitors. Bring old
but usable technology into your store so that it can be donated to students in
underfunded schools. Potential rewards should be offered for all the participants.

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 3. Use social media: Solicit the ideas, experiences and concerns of the customers to get
them invested in your projects. Multiple digital platforms to be used to reach people.
4. Partner with a third party: Form an alliance with any NGO as it will offer an
opportunity to blend customers and networks.
5. Repurpose the CSR reports: Charts, stories and photos can be used in the annual
reports and newsletters which will appeal to stakeholders and shareholders alike.
6. Seek publicity: Send out a press release about any contests, events or fundraising
drives, and reach out to media outlets that present on green topics as they’ll be apt to
give you positive coverage.

Conclusion
Corporate Social Responsibility is most important part of banking sector because it increases
the revenue and also removes the negative image of the organization. It builds a long term
relationship with society as well as improve the brand image of the banking sector.

After the analysis, we can suggest that the public sector works more than the private sector in
social welfare but there is more need for creation of awareness among Corporate Social
Responsibility. At present the banking sectors are working more effectively as compared to
past years.  After the involvement of RBI and Government of India, banking sectors are more
aware of the policies and activities related to Corporate Social Responsibility.

HDFC Bank corporate social responsibility has positively impacted 5 crore lives through
#Parivartan. It has collected over 1 million units of blood, constructed (or renovated) 7,000
toilets in school, trained 7.6 lakh women in SHGs (self help groups) and provided 21,000
renewable energy units. Not only is it among the top spenders on CSR in India, it is among
the few corporates to adopt an integrated reporting approach. 

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