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TOPIC – Corporate social responsibility practice in Indian banking sectors” ( A Comparative study between public sector banks and

private sector banks)

S.No
certificate Declaration

CHAPTERS

PAGE. NO.
I II

Acknowledgement
Abstract List of tables and chart

III
IV V

CHAPTER – 1: INTRODUCTION
1.1 1.2
Introduction of corporate social responsibility Bank Profile (public sector bank and private sector bank) 1 7

CHAPTER – 2 DEVELOPMENT OF MAIN THEME Review of Literature Need of the study Objectives of the study Limitations of the study

2.1 2.2

8-40

2.3
2.4 3.3

41` 42 43

CHAPTER 3 – ; OVER VIEW OF FINANCIAL PRODUCT

3.1

Over view of corporate social responsibility which follow by select public and private banks

44

CHAPTER – 4: ANALYSIS & INTERPRETATION 4.1 4.4 Research Methodology Analysis & Findings Suggestions and recommendation Conclusion 44-4545-70 71-72 73 APPENDIX Questionnaire References & Bibliography I V .3 4.2 4.

Introduction of corporate social responsibility Bank profile ( selected public and private banks) 2.1. .

responsible business. corporate citizenship.CORPORATE SOCIAL RESPONSIBILITY  HISTORY The term "corporate social responsibility" came in the late 1960s but it use early 1970s after many multinational corporations formed the term stakeholder. or corporate social performance . meaning those on whom an organization's activities have an impact. also known as corporate responsibility.  INTRODUCATION Corporate social responsibility (CSR). sustainable responsible business (SRB).

global warming. deforestation. controlling pollution. By socially responsible.CONTI……  CSR is also referred to as: „business responsibility‟ „business citizenship‟ „community relations‟ „social responsibility‟  CSR means that a company's business model should be socially responsible and environmentally sustainable. For example. it means that the company's activities should benefit the society and by environmentally sustainable it means that the activities of the company should not harm the environment . etc. . mitigate carbon emissions.

CORPORATE SOCIAL RESPONSIBILITY OBJECTIVES 1. Strong Supplier Relationships 3.Customer Loyalty 2. Improved Employee Productivity 4. Better Community Relations .

Community approaches 2.APPROACHES OF CORPORATE SOCIAL RESPONSIBILITY There are three approaches of Corporate social responsibility which are as follow- 1.Shared value approaches .Philanthropy approaches 3.

Delhi. India Types Public bank Public bank Public bank . Karnataka. Maharashtra India Bangalore. Maharashtra India In New Mumbai. Maharashtr India a India Public bank Public bank In Mumbai.BANKS PROFILE  TOP TWO BANKS IN PUBLIC SECTORS BANK‘S NAME STATE BANK OF INDIA (SBI) BANK OF BARODA PUNJABN ATIONAL BANK BANK OF INDIA CANARA BANK PARAMETERS Founded 1955 1908 1895 1906 1906 Headquarters In Mumbai.

mortgage loans. consumer banking. wealth management . investment banking. private banking. wealth management cards.S Mundra (MD . private banking. finance and insurance. corporate banking. BANK OF INDIA Vijayalakshmi R Iyer (CMD CANARA BANK Rajiv Kishore Dubey (CMD cards. corporate banking. private banking. mortgage loans. consumer banking.R Kamath (MD. finance and insurance. chairman) cards. investment banking. corporate banking. finance and insurance. consumer banking. finance and insurance. investment banking. corporate banking. investment banking. private banking. consumer banking. mortgage loans. mortgage loans.PARAMETE RS STATE BANK OF INDIA (SBI) Parent and key people Mr Aditya Puri (MD) BANK‘S NAME BANK OF BARODA S. private banking. consumer banking. corporate banking. chairman) PUNJAB NATION AL BANK K. investment banking. mortgage loans. wealth management ) Products cards. wealth management cards. finance and insurance.

CONI….2 billion website wwwi.com .487 billion (2012) US$7.cicban k. Wwwbankofb www.in .com wwwbanko Canaraban findia.6 billion (2012) US$ 4.in aroda. PARAMETE RS STATE BANK OF INDIA (SBI) BANK‘S NAME BANK OF BARODA PUNJAB NATION AL BANK BANK OF INDIA CANARA BANK Revenue US$13.5 billion US$ 6.com k.2 billion(2012) US$ 6.pn bindia.

Delhi. Maharashtr India a India Private bank private bank Types Private bank Private bank . Maharashtra India 1954 1895 1985 Mumbai. Maharasht ra India Private bank Headquarters In New Mumbai.TOP FIVE BANKS IN PRIVATE SECTORS PARAMETERS BANK‘S NAME KOTAK MAHINDRA BANK HDFC BANK Founded ICIC BANK AXIS BANK INDUSLN D BANK 1954 In Mumbai. India 1994 In Mumbai.

consumer banking. Uday kotak (MD.PARAMET ERS HDFC BANK Parent and key people Mr Aditya Puri (MD) BANK‘S NAME ICIC BANK Ms. consumer banking. mortgage loans. wealth management cards. investment banking. mortgage loans. private banking. mortgage loans.Chanda Kochhar (MD & CEO ) AXIS BANK KOTAKMA HINDRA INDUSLND BANK Hinduja group (owner K. investment banking. wealth management . mortgage loans. finance and insurance. corporate banking. corporate banking. finance and insurance. finance and insurance.R Kamath (MD. private banking. wealth management Products cards. wealth management cards. consumer banking. private banking. investment banking. investment banking. private banking.chairem an) cards. corporate banking. finance and insurance. corporate banking. chairman) cards. consumer banking. finance and insurance. investment banking. mortgage loans. consumer banking. corporate banking. private banking.

PARAMETER S BANK‘S NAME KOTAKMAH INDRA BANK HDFC BANK ICIC BANK AXIS BANK INDUSLND BANK Revenue US$ 6.pnb india.c om www.com www.com .0 billion(2012) US4600 million website www.in US$2.kotak.52 billion (2012) US$7. com wwwicici. www.inslnd .hdfcbank.6 billion (2012) .847 billion(2012) US$ 13.

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Review of Literature  Need of the study  Objectives of the study

 Limitations of the study

LITRATURE OF REVIEW

Indian review of literature –7

Foreign review of Literature- 3

LITRATURE OF REVIEW
Title Author Findings & suggestions

Corporate social responsibility in Nigerian banking system

K. Jose

The findings suggest that banks have an objective view-point about CSR activities. They are concentrating mainly on education, balanced growth (different strata of society), health, environmental marketing and customer satisfaction as their core CSR activities. in the Nigerian banking system.

The Integration of Corporate Social Responsibil ity (CSR) Initiatives into Business Activities: Jette Steen Knudsen This article compares CSR initiatives to human resource management (HRM) initiatives. which have a longer tradition of being integrated into company strategy .Title Author Findings & suggestions CSR Initiatives of Indian private Banking Industry Mahabir Narwal The Indian private banking industry is found to be adopting an integrated approach by combining CSR with the ultimate customer satisfaction.

this paper analyses various dimensions of CSR activities of four key CPSEs.Title Author Findings & suggestions CSR Activities of Four Public Sector Enterprises in Energy and Power Sector in India Corporate Social Responsibility Bangladesh Nikhil Atale Using secondary data. . Critical observations are made and recommended to enhance the effectiveness of CSR programs as mandated by department of public enterprise (DPE) in its policy guidelines in April 2010 Krithika Subrani In Bangladesh. there are forty eight scheduled banks and out of them forty six had engagement in CSR practices in some form or other in 2009 Due to intense competition in the banking sector.

The second finding is the bi directional relationship that links CSR to the CR of banks.Title Author Findings & suggestions Banking reputation and CSR: a stakeholder Value approach Anita The paper identifies two main findings. Firstly. it argues that CSR is an important reputation driver. which is very important in satisfying all stakeholders Expectations It is found that banks do not phase their CSR based on the strategies of its competitors. Pria . able to create economic value over time. S. It may be due to the fact that all banks are operating in niche area The banking sector and CSR: An unholy alliance Sangeetha Krishnam urthy.

Lavanya The study concluded that there is positive relationship between banks CSR activities and profitability. The implications of this study include the need for banks to demonstrate high level of commitment to corporate social responsibility based on stakeholder theory in order to enhance their profitability in the long run. .M.Title Author Findings & suggestions Corporate Social Responsibility and Profitability of Nigeria Banks .N.A Causal Relationship C.

.Title Author Findings & suggestions Impact of Corporate Social Responsibility on Corporate Sustainability: A Study of the Indian Banking Industry Manisha Saxena The study would find relevance as it tries to sensitize the managers in the banking sector or any other organization to probe further and deeper to understand the impact of CSR on their sustainability while taking decisions about investing in CSR areas.

Banks have to makes expenditure on the welfare of the society it also enhance the reputation of the banks the selected reputed banks are doing corporate social responsibility practice for the last decades This need spread to study the corporate social responsibility practice of the selected banks and to make a comparative analysis of this practice so as to evaluate which banks is doing better practice from other .NEED OF THE STUDY  What banks taken from the society and what they do.

OBJECTIVE OF THE STUDY 1) TO examine the corporate social responsibility practices in selected banks 2) To make a comparative analysis of corporate social responsibility practice in selected public and private sector banks .

 There were certain limitations in undertaking this research work. Only limited sample size had been considered for the study and therefore. the conclusions drawn based on this may not be a reflection of the entire population   . As it is understood that the limitations are a part of the project. The sample size had been conducted considered for the study is small considered because of the time constraint. they have been overshadowed by the benefits of the study.

2.OVER VIEW OF CORPORATE SOCIAL RESPONSIBILITY PRACTICE 1. Over view of corporate social responsibility practice of public sector banks Over view of corporate social responsibility practice of public sector banks .

38 71.50 38.37 AMOUNT (` IN CRORES) Research & Development Supporting Culture Environment Protection Other projects Total expenditure on CSR 3.75 1.15 0.2011-12) National Donations Supporting Education Supporting Healthcare Assistance to underprivileged 5.OVER VIEW OF CSR PRACTICE WHICH FOLLOW BY SELECTED BANKS IN PUBLIC SECTOR 1.18 .33 15.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF SATE BANK OF INDIA (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE IN HAS BEEN INCURRED by SBI BANK:(Year .67 1.03 5.

50 2. Health 3. Education 2.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF BANK OF BARODA (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE IN 4 ABOVE HAS BEEN INCURRED:(Year .00 4.00 4. Women Welfare Donations (Rs cr.2.2011-12) Activity 1. Social Welfare Activities Total expenditure on CSR activity 66.9 97.4 .) 24.

7 6.2 29.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF PUNJAB NATIONAL BANK (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(2011-12 ) Amount (` in crores) Women welfare activity Supporting Education Agriculture Small Enterprise Credit of weaker Section 9.5 10.2 22.5 18.6 Energy conservation Other projects Total expenditure on CSR activity 18.3 .3.6 115.

8 Education Housing 17.26 87.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF BANK OF INDIA (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE IN 4 ABOVE HAS BEEN INCURRED:(Amount (` in crores ) As on 31st March 2011-12 Particulars Agriculture Small Enterprise 18.6 6.4.15 .25 25.3 Research and development Total expenditure on CSR activity 19.

4 9.75 activity .4 31.0 2. 7.68 2.1 2. Activity 1 2 3 4 5 6 7 Education Health Charities Social Welfare & Relief Energy Conservation Women Welfare Agriculture activity Amount in cr.5.4 6.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF CANARA BANK (2011-2012) S.No.9 Total expenditure on CSR 72.

37 2.75 Supporting Culture Environment Protection Other projects Total expenditure activity on CSR 3.67 1.33 15.18 .50 Supporting Education Supporting Healthcare Assistance to underprivileged Research & Development 58.2011-12) National Donations 8.15 1.OVER VIEW OF CSR PRACTICE WHICH FOLLOW BY SELECTED BANKS IN PUBLIC SECTOR 1.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF SATE BANK OF INDIA (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year .38 96.03 5.

38 95.37 35.CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF ICICI BANK (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year .2.2011-12) Amount (` in cr.0 21.) National Donations Supporting Education Supporting Healthcare Substantiality livelihood Total expenditure on CSR activity 15.78 .03 24.

2011-12) Amount (` in cr. Activity 1.) 6.23 31. Donation for women welfare 3.64 14.) CSR. Human resources development Total expenditure on CSR activity Donations Cr.13 (Rs .09 14. Education 2.3-CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF AXIS BANK (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year .40 66. Green banking 4.

) 9.2011-12) National Donations Supporting Education Supporting Healthcare Environment protection Human resources development Employee safety Total expenditure on CSR activity Amount (` in cr.4.44 8.0 50.47 .8 12.73 6.5 7.CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORTING OF KOTAK MAHINDRA BANK (20112012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year .0 8.

Activity No.) 1.36 .16 5.Humanresources development Total expenditure on CSR activity 7.2011-12) Amount (` in cr.0 41.5. Donation 2. Green banking 3.CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORTING OF INDUSLND BANK (2011-2012) LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year . Energy conservation 4. Donations (Rs Cr.) Sr.2 5.0 58.

ANALYSIS & INTERPRETATION Research Methodology Analysis & Findings Suggestions and recommendation Conclusion .

official website of Selected banks books. five from each sectors public and private These banks are among the top five banks in their respected sectors. The researcher proposes the following research procedure for this study: SCOPE OF STUDY In this study it is a empirical research . journals . evaluate and analyze the study the secondary data will be taken into consideration. DATA COLLECTION In order to examine. Researcher have been conducted on 10 banks.etc .RESEARCH DESIGN Research design & methodology is the backbone of any research study. Secondary data will be collected from annual reports.

5 banks .5 banks TOTAL SAMPLE SIZE – 10 BANKS HYPOTHEISE Ho = there is no significant difference between the corporate social responsibility practice of private sector banks and public sector banks METHODS AND TOOLS OF ANALYSIS – Tools use for analysis are  Mean and percentage  T.test TOOLS FOR PRESENTATION graph and chart .Conti…… SAMPLE SIZE Private sector Public sectors .

the paper is descriptive in nature. As a result.RESEARCH METHODOLOGY The paper is constructed to synchronize theoretical and practical exposure of CSR in Banking perspective. To find out the knowledge of CSR practice in top ten bank of each sector public and private 2) To fill second object “To make a comparative analysis of corporate social reporting practice in selected public and private sector banks “ researcher will be Collected data have been processed & compiled with the aid of MS Word. Most of the information are generated by evaluating “Secondary Sources” like 1) To fill the first object “TO examine the corporate social responsibility practices in selected banks “researcher have been collect data from the Annual report of different commercial Banks and official website of the banks. Excel & other related computer software. Necessary tables have been prepared on the basis of collected data and various statistical techniques have been applied to analyses on the basis of classified information .

Analysis & Findings   THREE TYPES CORPORATE SOCIAL RESPONSIBILITY ACTIVITY There are mainly threes types of corporate social responsibility which are as follows .

.VARIABLE In this category many corporate social responsibility activity involve but researcher select 20 variable 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) National donation activity Supporting education activity Supporting healthcare activity Assistance to under privileged activity Research and development activity Supporting culture activity Environment protection activity Women welfare activity Social welfare activity Agriculture activity etc.

11) Housing 12) Small enterprise development activity 13) Credit of weaker Section 14) Energy conservation 15) Charities 16) Sustainability livelihood activity 17) Green banking 18) Human recourses development activity 19) Employee safety 20) Other project .Conti……….

Corporate social responsibility practice in Indian banking sectors”( A Comparative study between public sector banks and private sector banks ) On the basic of check list – HYPOTHEISE Ho = there is no significant difference between the corporate social responsibility practice of private sector banks 1 National and public sector banks donation activity CHECK LIST OF CSR ACTIVITY WHICH FOLLOW BY (TOP FIVE) PRIVATE BANKS S. CORPORATE SOCIAL RESPONSIBIL ITY ACTIVITY HDFC BAN K ICICI BAN K AXIS BAN K INSL AND BAN K KOTA K MAHI NDRA BAN K Y Y Y Y Y 2 Supporting education activity 3 Supporting healthcare activity Y Y Y Y Y Y Y N N Y . N.

RESPONSIBILITY ACTIVITY HDFC ICICI AXIS BAN BAN BANK K K INSLA KOTAK ND MAHIN BANK DRA BANK 4 5 6 Assistance to under privileged activity Research and development activity Supporting culture activity Y Y N N N N N Y N N Y Y N Y N 7 8 9 10 11 Environment protection activity Women welfare activity Social welfare activity Agriculture activity Small enterprise development activity Y N Y N N N Y Y Y N N N Y Y Y Y N N N N Y N N N N .N CORPORATE SOCIAL .CONTI…… S.

CORPORATE SOCIAL RESPONSIBILITY ACTIVITY HDFC BANK ICICI BANK AXIS BANK INSLA KOTAK ND MAHIND BANK RA BANK N Y Y N N Y Y N Y N N N Y Y 12 13 14 15 16 17 18 Credit of weaker Section N Energy conservation Housing Charities Sustainability livelihood Green banking Human recourses development activity N N N N Y N Y N N Y Y N N Y N N N Y Y Y 19 20 Employee safety Other project Y Y Y N N N N N Y N .CONTI…… S.N .

N. S. of yes Percentage HDFC BANK ICICI AXIS INSL KOTAK BANK BANK AND MAHIN BANK DRA BANK 8/20 40 9/20 45 6 /20 30 5/20 35 10 /20 50 CSR PRACTICE IN SELECTED PRIVATE BANKS IN PERCENTAGE (2011-2012) 60% 50% 40% 30% 20% 10% 0% HDFC BANK ICICI BANK AXIS BANK INSLAND BANK KOTAK MAHINDRA BANK 50% 40% 45% 30% 35% .CONTI…. CORPORATE SOCIAL RESPONSIBILITY ACTIVITY Total no.

CHECK LIST OF CSR ACTIVITY WHICH FOLLOW BY (TOP FIVE) PRIVATE BANKS S. RESPONSIBILITY ACTIVITY SBI BOB PNB BOI CANAR A BANK 1 2 3 4 5 6 National donation activity Supporting education activity Supporting healthcare activity Assistance to under privileged activity Research and development activity Supporting culture activity Y Y Y Y Y N Y Y Y N N N Y Y N N N N Y Y N N Y Y Y Y Y N Y N 7 8 Environment protection activity Women welfare activity Y N N Y N N Y N Y N .N CORPORATE SOCIAL .

N.Conti S. CORPORATE SOCIAL RESPONSIBILITY ACTIVITY Social welfare activity Agriculture activity Small enterprise development activity Small enterprise development activity Credit of weaker Section Energy conservation Housing Charities Sustainability livelihood Green banking SBI BOB PNB BOI CANAR A BANK N N N N N Y N N N N 9 10 11 11 12 13 14 15 16 17 N N N N N N N N N N Y Y N N Y N N N N N N Y Y Y Y Y N N N N Y Y Y Y N N Y N N N .

RESPONSIBILITY ACTIVITY 18 Human recourses development activity SBI BOB PNB BOI CANARA BANK Y N N N N 20 19 Other project Employee safety Y N N N Y N N N N N Total no.N CORPORATE SOCIAL .2012) 45% 50% 40% 30% 20% 10% 0% SATE BANK OF INDIA BANK OF BARODA PUNJAB NATIONAL BANK PUBLIC BANKS BANK OF INDIA CANARA BANK 30% 35% 40% 25% . of yes Percentage 9 /20 50 6/20 40 7/20 45 8 /20 30 5/20 35 CSR PRACTICE IN SELECTED PUBLIC BANKS IN PERCENTAGE ( 2011.CONTI S.

of yes D = X.T-TEST CALCULATION OF CSR PRACTICE OF PUBLIC AND PRIVATE SECTOR BANKS PUBLIC BANKS NAME HDFC ICICI AXIS INSLAN D KOTAK N=5 N0.X¯ D² CALCULATION OF MEAN AND STANDARD DAVIATION OF PRIVATE BANKS 10 8 9 6 7 ∑X=40 2 0 1 -2 1 ∑D = 0 4 0 2 4 1 ∑D² = 10 .

CONTI… FORMULA OF MEAN = ∑ x ∕n FORMULA OF STANDARD DEVIATION = 40 / 5 = 8 √∑d² ∕ n √10 / 5 = 1.41 .41 = Private banks  Mean = 8  Standard deviation = 1.

X¯ D² 9 6 7 8 5 ∑X=35 2 -1 0 1 4 ∑D = 0 4 1 0 1 4 ∑D² = 10 .OF YES D = X.Conti… CALCULATION OF MEAN AND STANDARD DAVIATION OF PRIVATE BANKS PUBLIC BANKS NAME SBI BOB PNB BOI CN N=5 N0.

41 Public banks  Mean = 7  Standard deviation = 1.CONTI… FORMULA OF MEAN = ∑ x ∕n 35/ 5 = 7 FORMULA OF STANDARD DEVIATION = √∑d² ∕ n = √10 / 5 = 1.41 .

41 + 1.77 0.CALCULATION OF SD OF BOTH GROUP (PRIVATE BANKS AND PUBLIC BANKS FORMULA OF STANDARD DEVIATION = = 0.564 .41 5 + 5 CALCULATION OF T-TEST OF BOTH PRIVATE BANKS AND PUBLIC BANKS m1 + SD m2 8 + 7 = 1.564 SD1 + SD2 N1 + N2 1.

41 2.Private Sector banks 8 1.41 H0 is accepted because the Calculated value of t-test (1.7) is less than table value (2.7 2.CALCULATION OF T-TEST OF PRIVATE BANKS AND PUBLIC BANKS Banks Mean Standard deviation t-test Table valu value e 1.306) at confident level is 95% .306 Result 1.Public Sector banks 7 1.

50 5.23 - - 8.09 7.2 9 2 Supporting education activity 3 Supporting healthcare activity 4 Assistance to under privileged 58.33 15.03 35. N .COMPARISON ON THE BASIC OF EXPENDITURE – Ho = there is no significant difference between in private and public sectors banks expenditure on corporate social responsibility Expenditure of private sector banks on Corporate Social Responsibily S .37 - - - - .5 5.03 24 6.73 6. CORPORATE SOCIAL RESPONSIBILITY ACTIVITY HDFC ICICI BANK BANK AXIS INS KOT BAN LA AK K ND MAH BA INDR NK A 1 National donation 8.37 31.

75 3. S.15 1. CORPORATE HDFC ICICI SOCIAL BANK BANK RESPONSIBILITY ACTIVITY AXIS BANK INSLA ND BANK KOTAK MAHINDRA BANK 5 6 7 8 9 Research and development Supporting culture Environment protection activity Women welfare Social welfare 2.67 - - - 6 - 7.8 - 10 11 12 Agriculture Small enterprise development Credit of weaker Section - - 14.795 - - .CONTI..845 23. N.