1 Corporate Social Responsibility Policy – Federal Bank 1.

Our CSR Statement For us in Federal Bank

reaching out to people who needs assistance is part of the values passed down by our Founder Shri KP
Hormis. The objective we intend to achieve through our CSR programs aims at developing communities
and environment sustainability to create a protected future for the generations to come. Our activities
touches a wider footprint through areas like Health, Education, Woman empowerment, Environment
sustainability, and other activities as permitted under Companies Act,2013, all aimed at creating a
meaningful difference in the society where we live and operate in. In tune with the Companies Act, 2013
read with regulatory requirements in Companies (Corporate Social Responsibility Policy) Rules, 2014, the
following points need to be observed while implementing the CSR activities. i. Bank’s CSR corpus to
include at least 2% of the average net profit (profit before tax) the immediate three preceding financial
years ii) any income arising from CSR activity iii) Surplus funds or unspent CSR funds. ii. CSR Policy relates
to the activities to be undertaken by the Bank as specified in schedule VII of the Companies Act, 2013
and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business
of the Bank. iii. CSR Committee of the Board shall institute a transparent monitoring mechanism for
implementing the projects/programmes/ activities proposed to be undertaken by the Bank. iv. For
Implementation of approved CSR activities of the Bank, services of Federal Bank Hormis Memorial Trust
can be utilized. Bank shall disclose the contents of the CSR Policy in its website and publish it in its
Annual Report. v. Incase if Bank fails to spend the mandatory required amount earmarked, the Board
shall, in its report under Section 134 of the Act, specify the reason for not spending the amount. vi. CSR
projects/programmes will have focus on integrating business models with social and environmental
priorities and processes in order to create shared value. vii. Bank will ensure that the surplus if any
arising out of the CSR activity will not be part of business profits of the Bank. 2 2. Vision i. To identify and
implement CSR projects aimed at uplifting the weaker sections of the social strata and to support the
needy and elderly people. ii. To empower youth, children and women through skill building programs iii.
To get involved in activities that can build a sustainable environment for future generations. 3.
Organization Structure for CSR activities The CSR activities will be undertaken in compliance of and as
per the CSR Policy approved by the Board of the Bank. CSR Cell of the Bank shall co-ordinate, monitor,
ensure, inspect and report to the CSR Committee of the Board, that the benefit reaches the intended
beneficiaries. As far as possible the activities would be implemented by the Trust set up by the Bank,
which will act as a special vehicle for the implementation of CSR activities, with due compliance of the
applicable statutory provisions. 4. Geographical Coverage Bank with its presence pan India will be
extending its CSR activities across all geographies irrespective whether a Federal Bank branch has
operation or not. This will be applicable to any project undertaken by the Bank. More thrust shall be
given to states which are socially backward as may be decided by Board Committee from time to time.
5. Scope of Projects The Companies Act, 2013 specify that at least 2% of the average net profit (profit
before tax) of the immediately preceding three financial years has to be allocated for CSR activities.
Being in the service sector having its footprint throughout the length and breadth of the country and
wide reach amongst society, the core focus of our CSR projects (which are connected to Companies Act
2013) would revolve around social development programs. The other critical areas where we would get
involved are in the field of environment protection, empowerment of women, promoting education
including special education and employment, training to promote rural sports, nationally recognized
sports, setting up public libraries and others including contribution to Prime Ministers National Relief
Fund or any other funds set up by the Central Government for socio economic development. 6.
Identification of Projects The CSR Committee of the Board will decide on a theme which can vary from
year to year to have a meaningful focus happening on CSR initiatives. Based on the theme, projects shall
be 3 identified by the CSR Committee of Executives or Zonal CSR Committee and approved by the CSR
Committee of Board. Required assistance for identification of projects shall also be taken up through
professional agencies appointed for the purpose from time to time. The final right rests with the CSR
Committee of the Board for approving or rejecting a particular proposal taken up for implementation. 7.
Implementation of Projects and modalities of execution (a) Implementation through employee
involvement The Bank perceives CSR programs as an avenue for employee engagement and
development and will devise schemes which will help employees contribute to CSR programs. For
implementation of approved CSR projects services of Federal Bank Hormis Foundation Trust can be
utilized. (b) Association with NGO’s, Trusts Wherever the CSR Board Committee feels that the assistance
of a registered society or registered trust is required for implementing identified projects, such
assistance will be taken for effective implementation, with its approval, provided such organizations
have an established track record of at least three years in carrying on activities in related areas. The
projects or programs to be undertaken through these entities, the modalities of utilization of funds on
such projects and programs and the monitoring and reporting mechanism should be specified. The
contribution to any such Organisation/Trust shall not exceed 5% of the amount expended for CSR
purposes in a financial year. 8. Monitoring of the projects Quarterly report shall be submitted to the CSR
Committee of the Board through CSR Cell outlining the status of the CSR projects initiated, completed,
as well as a breakup of the funds utilized for the purpose. 9. Projects and Programmes The focus sectors
and the general projects where Bank will deploy CSR funds and efforts are appended. The projects and
programmes will be implemented by the total participation of the entire employees of the Bank. (i)
Healthcare & Poverty Alleviation: Eradicating hunger, poverty and malnutrition; providing safe drinking
water, housing to economically backward sections of the society, healthcare including preventive
healthcare and trauma-care, improved sanitation and hygiene and other measures for reducing
inequalities faced by socially 4 & economically backward sections of the society; including contribution
to funds set up by Central Government for promotion of sanitation. (ii) Education & Skill Development:
Promoting education including special education and vocational education including skill development
for children, women, elderly and differently able and livelihood enhancement projects and other
activities within the overall objective of promoting education. (iii) Gender equality and welfare of Senior
Citizens: Undertaking activities for gender equality including, but not limited for women empowerment,
self help groups and similar organisations; setting up of homes and hostels for women and orphans;
setting up of homes of elderly or day care centres or other such facilities for Senior Citizens. (iv) Ensuring
environmental sustainability and ecological balance: Undertaking activities with the overall objective of
ensuring environmental sustainability and ecological balance, protection of flora and fauna, animal
welfare, agroforestry, conservation of natural resources including maintaining quality of soil, air and
water, renewable energy and other activities within the overall objective of environmental sustainability
including contributions to funds set up by Central Government. (v) Protection of National Heritage:
Contributing to provide protection to national heritage, art and culture including restoration of buildings
and sites or historical importance and works of art; setting up of public libraries, promotion and
development of traditional arts and handicrafts. (vi) Benefit of armed forces veterans: Taking up projects
or activities intended for providing benefit of armed forces veterans, war widows and their dependents.
(vii) Promotion of sports: Promote rural, nationally recognised, Paralympics and Olympic sports by
supporting training for attaining excellence in all area of sports. (viii) Contribution to the Prime
Minister’s National Relief Fund and/or other Funds set up by the Central Government for socio
economic development and relief and welfare of the scheduled castes, the scheduled tribes, other
backward classes, minorities and women. (ix) Providing financial assistance to technology incubators,
located within academic institutions duly approved by the Central Government for the purpose. (x) Rural
Development: Development projects for rural areas and areas declared by Government as slum areas.
The above objectives are broad based, and will be construed in a liberal manner within the framework
of the Act. 5 7. Financials For CSR activities, Bank will earmark at least 2% of the average net profit for
the immediately preceding three financial years as the budget for the financial year as mandated in the
Companies Act 2013. The CSR Committee to the Board can fix the maximum amount which can be
expended for CSR purposes. The funds so allocated every year shall move into a CSR corpus fund from
where planned expenses will be made. It shall be the endeavor of the Bank to fully utilize the budget
allocated every year for CSR programs as per the policy; however any leftover amount for the year will
move into a CSR corpus fund which will be used for next years’ CSR activities. The surplus arising out of
CSR activity will not be part of business profit of the Bank. The CSR corpus fund shall be accounted
separate and the fund shall essentially comprise of three elements 1. At least 2% of the average net
profit for immediately preceding three financial years allocated as CSR budget every year 2. Any income
arising from CSR activity 3. Surplus funds or unspent CSR funds – (Left over funds) 8. Validity of the
Policy This Policy shall be valid unless it is amended by the Committee as may be required from time to
time.