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

d 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 4.2 4.3 4.4

Research Methodology Analysis & Findings Suggestions and recommendation Conclusion 44-4545-70 71-72 73

APPENDIX
Questionnaire References & Bibliography I V

1.

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

2.

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, meaning those on whom an organization's activities have an impact.

INTRODUCATION

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance

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. By socially responsible, 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 . For example, controlling pollution, global warming, deforestation, mitigate carbon emissions, etc.

CORPORATE SOCIAL RESPONSIBILITY OBJECTIVES

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

APPROACHES OF CORPORATE SOCIAL RESPONSIBILITY

There are three approaches of Corporate social responsibility which are as follow-

1- Community approaches 2- Philanthropy approaches 3- Shared value approaches

BANKS PROFILE

TOP TWO BANKS IN PUBLIC SECTORS

BANKS 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, Maharashtra India

In New Mumbai, Delhi, Maharashtr India a India Public bank Public bank

In Mumbai, Maharashtra India

Bangalore, Karnataka, India

Types

Public bank

Public bank

Public bank

PARAMETE RS STATE BANK OF INDIA (SBI) Parent and key people Mr Aditya Puri (MD)

BANKS NAME
BANK OF BARODA S.S Mundra (MD , chairman) PUNJAB NATION AL BANK K.R Kamath (MD, chairman) cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, BANK OF INDIA Vijayalakshmi R Iyer (CMD CANARA BANK Rajiv Kishore Dubey (CMD cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

Products

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

CONI.
PARAMETE RS STATE BANK OF INDIA (SBI)

BANKS NAME
BANK OF BARODA PUNJAB NATION AL BANK BANK OF INDIA CANARA BANK

Revenue

US$13.2 billion(2012)

US$ 6.487 billion (2012)

US$7.6 billion (2012)

US$ 4.5 billion

US$ 6.2 billion

website wwwi.cicban k.com

, Wwwbankofb www.pn bindia.in aroda.com

wwwbanko Canaraban findia.com k.in

TOP FIVE BANKS IN PRIVATE SECTORS

PARAMETERS

BANKS NAME
KOTAK MAHINDRA BANK

HDFC BANK Founded

ICIC BANK

AXIS BANK

INDUSLN D BANK

1954 In Mumbai, Maharashtra India

1954

1895

1985 Mumbai, India

1994 In Mumbai, Maharasht ra India Private bank

Headquarters

In New Mumbai, Delhi, Maharashtr India a India Private bank private bank

Types

Private bank

Private bank

PARAMET ERS
HDFC BANK Parent and key people Mr Aditya Puri (MD)

BANKS NAME
ICIC BANK Ms.Chanda Kochhar (MD & CEO ) AXIS BANK
KOTAKMA HINDRA

INDUSLND BANK Hinduja group (owner

K.R Kamath (MD, chairman) cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking,

Uday kotak (MD,chairem an) cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

Products

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management

PARAMETER S

BANKS NAME
KOTAKMAH INDRA BANK

HDFC BANK

ICIC BANK

AXIS BANK

INDUSLND BANK

Revenue

US$ 6.847 billion(2012)

US$ 13.52 billion (2012)

US$7.6 billion (2012) , www.pnb india.in

US$2.0 billion(2012)

US4600 million

website www.hdfcbank. com wwwicici.com

www.kotak.c om

www.inslnd .com

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.

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.

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 Activities of Four Public Sector Enterprises in Energy and Power Sector in India
Corporate Social Responsibility Bangladesh

Nikhil Atale

Using secondary data, this paper analyses various dimensions of CSR activities of four key CPSEs. 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,

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, able to create economic value over time. The second finding is the bi directional relationship that links CSR to the CR of banks, 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. 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, S. Pria

Title

Author

Findings & suggestions

Corporate Social Responsibility and Profitability of Nigeria Banks - A Causal Relationship

C.N.M. 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.

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.

NEED OF THE STUDY

What banks taken from the society and what they do. 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

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. As it is understood that the limitations are a part of the project, they have been overshadowed by the benefits of the study.
The sample size had been conducted considered for the study is small considered because of the time constraint. 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

OVER VIEW OF CORPORATE SOCIAL RESPONSIBILITY PRACTICE

1.

2.

Over view of corporate social responsibility practice of public sector banks Over view of corporate social responsibility practice of public sector banks

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 IN HAS BEEN INCURRED by SBI BANK:(Year - 2011-12)

National Donations Supporting Education Supporting Healthcare Assistance to underprivileged

5.50 38.33 15.03 5.37

AMOUNT (` IN CRORES)

Research & Development

Supporting Culture Environment Protection Other projects Total expenditure on CSR

3.75
1.15 0.67 1.38 71.18

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 - 2011-12) Activity 1. Education 2. Health 3. Women Welfare Donations (Rs cr.) 24.00 4.50 2.00

4. Social Welfare Activities Total expenditure on CSR activity

66.9 97.4

3- 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

9.2 22.7 6.2 29.5 18.6

Energy conservation
Other projects Total expenditure on CSR activity

18.5
10.6 115.3

4- 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

18.25
25.8

Education
Housing

17.6
6.3

Research and development

Total expenditure on CSR activity

19.26
87.15

5- CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF CANARA BANK (2011-2012)

S.No. Activity 1 2 3 4 5 6 7 Education Health Charities Social Welfare & Relief Energy Conservation Women Welfare Agriculture activity

Amount in cr. 7.4 9.1 2.0 2.4 6.68 2.4 31.9

Total expenditure on CSR 72.75 activity

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 - 2011-12) National Donations 8.50 Supporting Education Supporting Healthcare Assistance to underprivileged Research & Development 58.33 15.03 5.37 2.75

Supporting Culture
Environment Protection Other projects Total expenditure activity on CSR

3.15
1.67 1.38 96.18

2- CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF ICICI BANK (2011-2012)

LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year - 2011-12) Amount (` in cr.) National Donations Supporting Education Supporting Healthcare Substantiality livelihood Total expenditure on CSR activity 15.37 35.03 24.0 21.38 95.78

3-CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICE OF AXIS BANK (2011-2012)

LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year - 2011-12) Amount (` in cr.)

CSR. Activity
1. Education 2. Donation for women welfare 3. Green banking 4. Human resources development Total expenditure on CSR activity

Donations Cr.)
6.23 31.09 14.64 14.40 66.13

(Rs

4- CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORTING OF KOTAK MAHINDRA BANK (20112012)

LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year - 2011-12) National Donations Supporting Education Supporting Healthcare Environment protection Human resources development Employee safety Total expenditure on CSR activity Amount (` in cr.) 9.0 8.73 6.5 7.8 12.44 8.0 50.47

5- CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORTING OF INDUSLND BANK (2011-2012)

LIST OF CSR ACTIVITIES IN WHICH EXPENDITURE HAS BEEN INCURRED:(Year - 2011-12)

Amount (` in cr.) Sr. Activity No. Donations (Rs Cr.)

1. Donation 2. Green banking

3. Energy conservation 4.Humanresources development Total expenditure on CSR activity

7.2 5.0
41.16 5.0 58.36

ANALYSIS & INTERPRETATION

Research Methodology Analysis & Findings Suggestions and recommendation Conclusion

RESEARCH DESIGN
Research design & methodology is the backbone of any research study. The researcher proposes the following research procedure for this study:

SCOPE OF STUDY
In this study it is a empirical research . Researcher have been conducted on 10 banks, five from each sectors public and private These banks are among the top five banks in their respected sectors.

DATA COLLECTION
In order to examine, evaluate and analyze the study the secondary data will be taken into consideration. Secondary data will be collected from annual reports, official website of Selected banks books, journals ,etc

Conti
SAMPLE SIZE
Private sector Public sectors - 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

RESEARCH METHODOLOGY
The paper is constructed to synchronize theoretical and practical exposure of CSR in Banking perspective. As a result, the paper is descriptive in nature. 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. 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, 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.

Conti.
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

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, N.

CORPORATE SOCIAL RESPONSIBIL ITY ACTIVITY

HDFC BAN K

ICICI BAN K

AXIS BAN K

INSL AND BAN K

KOTA K MAHI NDRA BAN K

2 Supporting education activity 3 Supporting healthcare activity

CONTI
S,N CORPORATE SOCIAL . 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

CONTI
S,N .

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. CORPORATE SOCIAL RESPONSIBILITY ACTIVITY
Total no. 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%

CHECK LIST OF CSR ACTIVITY WHICH FOLLOW BY (TOP FIVE) PRIVATE BANKS
S,N CORPORATE SOCIAL . 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

Conti
S, N. 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

CONTI
S,N CORPORATE SOCIAL . 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. 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- 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%

T-TEST CALCULATION OF CSR PRACTICE OF PUBLIC AND PRIVATE SECTOR BANKS

PUBLIC BANKS NAME HDFC ICICI AXIS INSLAN D KOTAK N=5 N0.of yes D = X- X D

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 D = 10

CONTI FORMULA OF MEAN = x n

FORMULA OF STANDARD DEVIATION =

40 / 5 = 8 d n 10 / 5 = 1.41

Private banks Mean = 8 Standard deviation = 1.41

Conti
CALCULATION OF MEAN AND STANDARD DAVIATION OF PRIVATE BANKS

PUBLIC BANKS NAME SBI BOB PNB BOI CN N=5

N0.OF YES D = X- X

9 6 7 8 5 X=35

2 -1 0 1 4 D = 0

4 1 0 1 4 D = 10

CONTI FORMULA OF MEAN =

x n

35/ 5 = 7

FORMULA OF STANDARD DEVIATION

d n

= 10 / 5

= 1.41

Public banks Mean = 7 Standard deviation = 1.41

CALCULATION OF SD OF BOTH GROUP (PRIVATE BANKS AND PUBLIC BANKS

FORMULA OF STANDARD DEVIATION

=
= 0.564

SD1 + SD2 N1 + N2

1.41 + 1.41 5 + 5

CALCULATION OF T-TEST OF BOTH PRIVATE BANKS AND PUBLIC BANKS

m1 +
SD

m2

8 + 7 = 1.77 0.564

CALCULATION OF T-TEST OF PRIVATE BANKS AND PUBLIC BANKS

Banks Mean Standard deviation t-test Table valu value e 1.7 2.306 Result

1- Private Sector banks

1.41

2- Public Sector banks

1.41

H0 is accepted because the Calculated value of t-test (1.7) is less than table value (2.306) at confident level is 95%

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 . N .

CORPORATE SOCIAL RESPONSIBILITY ACTIVITY

HDFC ICICI BANK BANK

AXIS INS KOT BAN LA AK K ND MAH BA INDR NK A

1 National donation

8.50

5.37

31.09 7.2

2 Supporting education activity

3 Supporting healthcare activity 4 Assistance to under privileged

58.33
15.03

35.03
24

6.23
-

8.73
6.5

5.37

CONTI..
S. N. 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

2.75 3.15 1.67 -

6 -

7.8 -

10
11 12

Agriculture
Small enterprise development Credit of weaker Section

14.845 23.795 -