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Rahul Gupta
Department of Management Studies,
Institute of Management Sciences, Jammu
 In India, majority of the people live in rural areas.

 Nearly all leading corporate in India are involved in corporate

social responsibility (CSR) programmes in various areas like
education, health, livelihood creation, skill development, and
empowerment of weaker sections of the society.

 To evident, notable efforts have come from the Tata Group,

Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil
Corporation among others (Poonam, 2016).
 There is no single universally accepted definition of CSR, it is
usually accepted as business decision making linked to ethical
values, legal compliance, and respect for people, community,
and environment.

 CSR expects the companies to go an extra mile and conduct its

operations with integrity and in an ethical manner in all its
business dealings with customer, suppliers, lenders, and
others, treat its employees in a fair manner and contribute
towards their growth and development, respect human rights,
sustain the environment for future generations.

 CSR as a concept whereby companies decide voluntarily to

contribute towards the society.
 Banking sector plays very important role in Indian
economy to develop rural areas. It acts like blood in
the body for proper and smooth functioning.

 RBI set up Khan Committee in 2005 and Nachiket

committees in 2013 to covers all commercial banks
under financial inclusion plan and make it
compulsory to submit a report on CSR activities at
the end of every year.
 There has been substantial amount of research focused
on the concept of CSR in the context of microfinance,
charitable initiatives to combat poverty in specific
regions, disaster prevention programmes, etc.
 However, there is very limited research that analyses
CSR in the context of the banking industry.
 So, it is very essential to study and understand the CSR
initiatives being taken by Indian banks for rural
development (Yeung, 2011).
 This paper intends to develop a literature review on CSR to
propose a conceptual framework of CSR in banking sector.

 The main purpose of the study is to analyse the CSR

activities carried out by J&K bank.

 Some issues from rural area have been selected to study

their CSR practices in the context of rural development of
banks in order to study main areas of research and present
status of CSR in the banking sector especially J&K bank
 The methodology of the present study relied on the
web-based research, annual reports of the banks,
review of print literature and visit to the selected bank
to witness CSR practices being followed by them.

 J&K bank being state owned bank was selected for the
purpose of conducting this research. For the purpose of
procuring data, the present study used annual report of
J&K bank for the year 2016-2017, to assess CSR
actions and its impact on rural development
 J&K Bank functions as a universal bank in Jammu &
Kashmir and as a specialised bank in the rest of the
 The bank is incorporated in 1938, and is listed on the
NSE and the BSE.
 It is the only private sector bank designated as RBI’s
agent for banking business, and carries out the banking
business of the Central Government.
 As a responsible institution, J&K bank is committed to
CSR. The bank has Board approved policy on CSR.
 CSR policy of the bank identifies key responsibility
areas and seeks to assimilate the CSR ideals into its
empowerment mission for optimising its social
 J&K bank strongly believes that for an organisation to
succeed on long term basis, it is imperative to keep the
inclusive welfare of the society at the core of its values
and purpose.
 J&K bank is committed to the mandated CSR and takes it as a mission.
 The target groups of the bank’s entire CSR programme comprise of the
weaker sections of the society like, women, children, differently abled
and others.
 All these CSR programmes were implemented by the bank either
directly or through implementing agencies like NGOs etc.
 Major CSR initiatives and programmes during the year 2016-2017
revolved around health, education, ecology and community welfare.
 The bank has formulated proper CSR committee to look after the
activities to be performed in terms of social responsibility which
comprises of
Table 1. Composition of CSR Committee
Mr. Parvez Ahmed Chairman & CEO
Mr. Azhar Ul Amin Director
Mr. Mohammad Maqbool Rather Member
Mr. Mohammad Ashraf Mir Member
Various key areas of J&K bank’s CSR programmes to enhance and
uplift the rural and vulnerable sections of society which are as follows:
 a) Improving Public Healthcare delivery system:
 Extending its support to Government Hospitals to augment the help to
the visiting poor patients.

 Donated two critical Gen-II coagulation machines to Leh and Kargil

district hospitals.

 St. Joseph hospital (Baramulla) was given critical USG machine for the
benefit of patients belonging to rural areas.

 Started project ‘Muskaan’ in which bank has adopted around 200

differently abled children through registered NGOs like Voluntary
Medicare Society, Chotey Taray foundation, Sahyog India.
Bank took some initiatives for the education of children of
marginalised sections of society which are as under

 Providing primary education through leading NGO named ‘Chinar

Kashmir’ and adopted 50 children for the programme.

 Launched scheme for ‘Empowering Girl Child’ and made a

substantial contribution in distributing Scooties to meritorious girl
students (belonging to poor families).

 Under the new concept of ‘Model Schools’ J&K bank developed

two Government Girls Secondary Schools in South & North
 Upgradation of Balgran, a charitable home in Jammu, housing more
than 150 children.
J&K bank is proactive and very sensitive to preserve and promote
pollution free environment in the state for the larger welfare of
the society.
 Launched ‘Environmental Excellence Programme’ and
undertaking number of measures like planting trees, developing
parks and gardens at barren lands and also undertaking
cleanliness drives.
 Under the same premise i.e. ‘Environmental Excellence
Programme’ Bank has been maintaining thirteen (13)
Parks/walkways at various locations of the State, indirectly
helping the cause of environmental protection, besides wellbeing
of the people.
 Upgradation of charitable homes in Jammu area.
 J&K bank has started many welfare organisation like JK Yateem Trust
for old aged people, widows, flood victims, etc. with the main motto of
serving the deserving.
e) Sanitation:
 J&K bank had an awareness programme which was held in Budgam, on
the importance of water conservation and need for undertaking proper
sanitation and ensuring hygiene today.
 The programme was organized by PHE Division Budgam in
collaboration with AR Azad Memorial Foundation in Town Hall
 Representatives from different Departments including ICDS, Rural
Development, Health, and Education participated in the workshop.
 The programme focuses on impacts of water pollution and urged people
to keep all the water bodies' safe and clean.
Expenditure by J&K Bank on various Aspects
Improving Public Healthcare delivery system INR 5,08,59,382
Promotion of Education INR 4,19,41,016
Environmental and Ecological Concerns INR 21,70,55,108
Up gradation of charitable homes INR 21,84,57,230
Sanitation INR 21,71,55,108
Promotion of sports INR 21,74,17,670
Discussions and Conclusions
It is concluded that J&K bank is taking many CSR initiatives like improving public
healthcare, promotion of education and sports, sanitation, upgradation of charitable
homes, etc. to develop rural areas.
It is further seen that bank has proper CSR policy and board to implement CSR
related programmes.
Furthermore, it is viewed that though the J&K bank is making efforts in the CSR
areas but still there is a requirement of more emphasis on CSR.
There are some other CSR practices like farmer’s training centre, rural clinic service,
farmers training centre, women welfare, etc. performed by other banks like PNB,
Canara bank, Allahabad bank, etc. which J&K bank is not taking into consideration.
 This study can be taken as a base to do empirical research by
many researchers, academicians as well as bankers to know
the CSR practices being performed by banks and how to cover
more banks under the ambit of CSR.
 This study might be valuable for commercial banks to
understand their own position among the overall banking
sector and also it is important for policymakers to judge the
banking performance from the angle of corporate social
 The present study can be generalised for all private sector
banks as the culture and operations of banks are similar all
over the country.
 This present study mainly uses secondary data for
analysis. In future, questionnaire or interviews can be
conducted with banks to collect data.
 In this study only one bank i.e. J&K bank is selected
but in future study can select all public and private
sector banks to examine the various CSR practices and
programmes held by banks.
 Moreover, comparison between public and private
sector banks can be drawn to assess the impact of CSR
action on overall development of nation.