Corporate Social Responsibility in Indian Banking Sector: A Critical Analysis

As corporates are profit making organizations basic assumption is that they should be sensitive to the needs of communities or society at large in which they operate, similarly their products and services should not bring negative impact on people and planet. The concept of Corporate Social Responsibility [CSR] has wider scope. The banks are one of the major stakeholders in the finance sector. Through its huge network of branches and profit the banking industry is one of the major corporates in India. The banks can have wider socio-economic impact in the society through their financial products and services. Considering this Reserve Bank of India has issued guidelines to banks regarding CSR, sustainable development and non-financial reporting and advised that the banks should frame their policies on CSR. To have demonstrated effects implementation of CSR is crucial. The present paper is based on the analysis of CSR activities undertaken by 19 public and private sector banks during three financial years. The paper will throw light on the social issues focused by banks, strategies adopted to implement CSR and social development, involvement of staff, sustainability of such activities etc. The paper will also take review of overall CSR and Social Development and nonfinancial reporting by banks.