DISSERTATION REPORT

ON

IMPACT OF CSR ON FINANCIAL HEATH OF SBI

IN PARTIAL FULLFILLMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BATCH (2016-19)

SUBMITTED TO : SUBMITTED BY :

MS RITIKA KOTHARI INAM UL HAQUE

SEM. 6TH

BEEHIVE COLLEGE OF MANAGEMENT AND TECHNOLOGY , SELAQUI

DEHRADUN.
 DECLARATION

I here by declare that the DISSERTAION report IMPACT OF CSR ON FINANCIAL

HEALTH OF SBI This work is based on original piece of work done by me for the fulfillment

of the award of degree of Bachelor of Business Administration at BEEHIVE COLLGE OF

ADVANCE STUDIES DEHRADUN . And whatever information has been taken from any

sources had been duly acknowledge. I further declare that the personal data & information

received from any respondent during survey has not been shared with any one and is used for

academic purpose only.

INAM UL HAQUE
 ACKNOWLEDGEMENT

I have pleasure in taking the opportunity of expressing gratitude to

all those hands that have helped me directly or indirectly during the whole
Research Report project work. Throug.h a series of efforts made by many
hands behind me, this report has been completed.

Many individuals have contributed to carry out this Research Report.

I am very thankful to my faculty guide MS RITIKA KOTHARI

for constant support and encouragement as well as the valuable
guidance and direction; she has provided the information to
complete my project report.

Lastly I would like to thank all of my friends and well wishers for
their valuable co operation because without their help and support I could
not be able to complete my research report successfully.

INAM UL HAQUE
 CONTENTS

Sr.No. TOPIC Remarks

COMPANY PROFILE

2 I

NTRODUCITON

REVIEW OF LITERATURE

4 RESEARCH

METHODOLOGY

ANALYSIS AND

INTERPRETETION

CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE
 INTRODUCITON

MEANING OF CSR

Corporate social responsibility, often abbreviated "CSR," is a corporation's initiatives to assess

and take responsibility for the company's effects on environmental and social wellbeing. The term
generally applies to efforts that go beyond what may be required by regulators or environmental
protection groups.

CSR may also be referred to as "corporate citizenship" and can involve incurring short-
term costs that do not provide an immediate financial benefit to the company, but instead promote
positive social and environmental change.

Corporate Social Responsibility is the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce and their
families as well as of the local community and society at large.

Corporate social responsibility (CSR, also called corporate conscience, corporate

citizenship or responsible business) is a form of corporate self-regulation integrated into
a business model. CSR policy functions as a self-regulatory mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical standards and national
or international norms. With some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the interests of
the firm and that which is required by law." The aim is to increase long-term profits through
positive public relations, high ethical standards to reduce business and legal risk, and shareholder
trust by taking responsibility for corporate actions. CSR strategies encourage the company to make
a positive impact on the environment and stakeholders including consumers, employees, investors,
communities, and others.

Proponents argue that corporations increase long-term profits by operating with a CSR perspective,
while critics argue that CSR distracts from businesses' economic role. A 2000 study compared
existing econometric studies of the relationship between social and financial performance,
concluding that the contradictory results of previous studies reporting positive, negative, and
neutral financial impact, were due to flawed empirical analysis and claimed when the study is
properly specified, CSR has a neutral impact on financial outcomes.

Types of Corporate Social Responsibility

CSR can encompass a wide variety of tactics, from giving non profit organizations a portion of a
company's proceeds, to giving away a product or service to a worthy recipient for every sale made.
Here are a few of the broad categories of social responsibility that businesses are practicing:

Economic: The first responsibility of the company towards society refers to running the business
as an economically healthy unit. It includes aspects such as return on investment for shareholders,
fair employee salaries, and quality products supplied to customers at fair prices; all required by the
society.

Legal: Demands that companies act in accordance with existing legislation and regulatory
requirements. The legal framework consequentially fosters society's ethical view and all
companies attempting to be socially responsible are therefore required by society to follow the law.

Ethical: It refers to corporation's responsibilities which are not covered by legal or economical
requirements, but instead by what could be considered as right or fair in the eyes of society.
Society therefore expects corporations to act ethically towards their stakeholders.

Environment: One primary focus of corporate social responsibility is the environment.

Businesses, both large and small, have a large carbon footprint. Any steps they can take to reduce
those footprints are considered both good for the company and society as a whole.

Philanthropy: Businesses also practice social responsibility by donating to national and local
charities. Whether it involves giving money or time, businesses have a lot of resources that can
benefit charities and local community programs. This involves corporation's willingness to
enhance the quality of living for their stakeholders (i.e. employees, local community, and society
at large) through charitable donations and organizational support. These corporate decisions are
entirely voluntary, of less importance than the former three, and (with regards to social
responsibility) only seen as desired by society.

Examples of corporate social responsibility

While many companies now practice some form of social responsibility, some are making it a core
of their operations. Ben and Jerry's, for instance, uses only fair trade ingredients and has developed
a dairy farm sustainability program in its home state of Vermont. Starbucks has created its
C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably
grown and processed coffee by evaluating the economic, social and environmental aspects of
coffee production. Tom's Shoes, another notable example of a company with CSR at its
core, donates one pair of shoes to a child in need for every pair a customer purchases.

Undertaking socially responsible initiatives is truly a win-win situation. Not only will your
company appeal to socially conscious consumers and employees, but you'll also make a real
difference in the world. Keep in mind that in CSR, transparency and honesty about what you're
doing are paramount to earning the public's trust.

"If decisions [about social responsibility] are made behind closed doors, people will wonder if
there are strings attached, and if the donations are really going where they say," Cooney said.
"Engage your employees [and consumers] in giving back. Let them feel like they have a voice."
 COMPANY PROFILE

HISTORY OF SBI

State Bank of India is an Indian multinational, Public Sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra and also its corporate office in Mumbai, Maharashtra. As of December 2013, it had
assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest
banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab
National Bank and ICICI Bank.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,
in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank
of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the
State Bank of India. Government of India owned the Imperial Bank of India in 1955, with Reserve
Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In
2008, the government took over the stake held by the Reserve Bank of India.

State Bank of India is a regional banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.

The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the imperial Bank of India became the State Bank of India. In 2008, the Government of
India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest
because the RBI is the country's banking regulatory authority.

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then
on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3%
in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government
hold the balance of 1.7 %.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches.
Also, following the acquisition, SBI's total assets will inch very close to the ₹10 trillion marks (10
billion long scales). The total assets of SBI and the State Bank of Indore stood at ₹9,981,190
million as of March 2009. The process of merging of State Bank of Indore was completed by April
2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson
of the bank.

Associate banks
SBI now has five associate banks, down from the eight that it originally acquired in 1959. All use
the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed
by the regional headquarters' name:

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

The State Bank of India and all its associate banks are identified by the same blue keyhole logo.
The State Bank of India word mark usually has one standard typeface, but also utilises other
typefaces.

Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.

Other SBI Service Points

As of 31 March 2014: SBI has 43,515 ATMs .SBI group (including associate banks) has 53,000
plus ATMs presently. SBI has become the first bank to install an ATM at Drass in the Jammu &
Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo and Slogan

 The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man - being the center of the bank's business. The
logo came from National Institute of Design (NID), Ahmedabad and it was inspired
by Kankaria Lake, Ahmedabad.
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION
BANKS ON US"

Listings and Shareholding

As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with
14.99% shareholding.
 CSR Practices in SBI BANK

Now-a-days CSR has been assuming greater importance in the corporate world including financial
institutions and banking sector. Banks and other financial institutions start promoting environment
friendly and socially responsible lending and investment practices. RBI (2007) has also directed
Indian banks to undertake CSR initiatives for sustainable development and also asked banks to
begin non-financial reporting which is related to activities in the era of environmental, social and
economic accounting. It has been observed from karmayog‟s CSR ratings that most of the Indian
public sector banks do not mention recent CSR activities on their annual reports or on the websites.
The financial institutions do not take adequate steps for updating the recent activities in CSR .CSR
has been assuming greater importance in the corporate world, including the banking sector. To
highlight the role of banks in CSR, the RBI circulated a notice on December 20, 2007 for all the
scheduled commercial banks in India. Recently financial institutions adopt an integrated approach
between customer satisfaction and CSR in a broader way. RBI also instructs the banks to integrate
their business operation along with social and environmental aspects. The major key areas of CSR
like, children welfare, community welfare, education, environment, healthcare, poverty
eradication, rural development, vocational training, women empowerment, protection to girl child,
and employment.

Education: All the five nationalized banks give major contributions towards education as
education plays a very important role in everybody's life.SBI as a leading public sector bank plays
a very key role in the field of education. It helps the needy people by providing education loan in
the field of education. SBI Education Loans has grown by 9.43% during FY 2012-13. It has a total
exposure of Rs. 13,751 cores as on Mar 2013.SBI Loan Scheme for Vocational Education and
Training was launched in July 2012 and loans up to Rs. 1 lakh are given under this scheme.
Maximum Loan Amount for Studies Abroad has also been increased to Rs.30 lakh from the
previous limit of Rs. 20 lac. Same as UCO Bank: An amount of Rs. 4.90 lakh to Shivaji
University, Kolhapur, Maharashtra under environment protection category for installation of Solar
Plant Device. Rs. 2 lakh to Ramakrishna Math, Nattarampalli, Vellore, Tamilnadu for construction
of building for an orphanage. Rs. 10 lakh to Mahaveer Viklang Sahayata Samity, Jaipur for
helping the physically challenged. To facilitate education & women empowerment a sum of Rs. 10
lakh was donated to Ramakrishna Mission Sister Nivedita Girls'' School. Rs. 6 lakh to Rajiv
Gandhi Foundation, New Delhi for purchasing vehicles with disabled-friendly attachment. Bank of
Baroda has been giving donations for the following purposes for the spread of education –
including for the girl child and womenfolk in remote villages. To reputed colleges/public schools
and other similar institutions. Like wise Andhra bank is setting up a school in the campus of
Andhra University in Vishakhapatnam. Along with the Andhra Pradesh Government and
NABARD, it has set up APBIRED for providing training to unemployed youth for improving their
skills. In the year 2007-2008, the bank has donated 2.14cr to various trusts and NGOs. Allahabad
Bank has launched a scheme to meet the total financial requirement of self help groups (SHGs)
members for taking up economic activities and meeting social needs such as Housing, Health,
Marriage, Educations and Consumption and Swapping of debts to informal lenders. Total financial
assistance under the scheme is to the extent of Rs. 50,000/- per member of SHG with a maximum
ceiling of Rs. 5.00 lakhs per SHG.

Environment: All most all the five banks have taken major steps or programs for environmental
protection. State Bank of India has a comprehensive CSR policy approved by the Board and the
focus areas are Supporting Education, Entrepreneur development & Health care, Assistance to
Poor and under privileged, Environmental protection, clean energy, and help in National
calamities. SBI is always in forefront to help states affected by natural calamities. During the
current fiscal SBI has lent its helping hand to the States of Assam, Sikkim, Uttarkhand,
Maharashtra etc with donation to Chief Minister‟s Relief fund to respective States provide to the
people affected by flood to a tune of Rs.9.00 core. In spite of these the bank is also engaged in tree
planting activities. Likewise UCO bank A new scheme named UCO Estate Purchase Loan was
launched based on the guidelines received from Department of Financial services, Ministry of
Finance, Government of India to extend financial assistance for purchase of Estates growing
traditional crops like coffee, tea, rubber, cardamom, cashew nut, pepper, coconut and other
perennial crops. An amount of Rs. 4.90 lakh to Shivaji University, Kolhapur, Maharashtra under
environment protection category for installation of Solar Plant Device. Bank of Baroda formulated
various area-specific schemes tailor-made to the needs of local requirements, particularly where
there is a concentration of industries like Rice Mills, Cold storages, Poultry units, etc. The suitable
concessions in rate of interest, charges were allowed under these schemes to garner maximum
business out smarting competition. As many as 18 area-specific schemes were formulated to
increase the agricultural lending and also the bank made donation in the field of Adoption of
gardens in cities where the Bank's name can be publicized. Allahabad Bank identified the thrust
areas such as financing of supply chains for Agri Business development, Plantation & Horticulture,
Minor Irrigation development, Post harvest storage infrastructures, lending to SHGs/JLGs through
Micro Finance Institutions etc to accelerate credit flow to priority sector with special emphasis to
Agriculture sub- sector during 2008-09. As a part of its CSR activities, the Bank has initiated
adoption of wild animals at 'Van Vihar' Bhopal showing its love for wild animals. The Bank has
adopted following animals for one year commencing from1stApril, 2010Tigress 'BASANI',
Leopard' AGNI', Sloth Bear 'KAMAL' Andhra Bank is not taking any initiatives in field of
environment.

Health: Health plays a vital role in everybody's life. All the public sector banks have taken
various initiatives, various programs in the field of health. State Bank of India for the financial
year 2012-13, earmarked Rs.117.07 crore i.e. 1% of SBI‟s previous year profit for CSR activity.
During the current financial year, the Bank has extended financial assistance for 300 Ambulance
Vans to needy and service organizations, 42,000 water purifiers and 1, 40,000 ceiling fans to more
than fifty thousand schools to provide clean water and conducive climate to school children. Under
health care activities SBI has extended assistance to a tune of Rs. 14 crores for support to hospitals
in the form of Medical equipments and others. UCO bank under health care category Thalassaemia
Society of India was provided with Bank's donation of Rs. 6 lakh for treatment of Thalassaemic
children belonging to BPL category. A van costing Rs. 7.90 lakh was donated to Disha
Foundation, Jaipur for the physically and mentally retarded. Bank of Baroda Vaccination projects
for controlling spread of diseases/epidemics Providing support to organizations extending support
to handicapped persons like blind, lame, deaf and dumb, etc or suffering from any other disabilities
During the Financial Year FY13, the Bank disbursed donations amounting to Rs.699.74 lakh to
various organizations engaged in the field of education, health, women welfare etc. In Allahabad
bank Corporate Social Responsibility (CSR) was introduced for the first time in the Bank in
September / October, 2012. The bank give financial support to Provision of arsenic-free drinking
water in a village, Contribution towards development of the interior of a high quality diagnostic
clinic meant for the economically weaker sections of the society; Contribution towards renovation
of a rehabilitation centre for mentally challenged women, Donation of a vehicle to Centralized
Accident & Trauma Services (CATS) to be used for field inspection. Andhra Bank Being an
integral part of society bank is aware of its corporate social responsibilities and has engaged in
community and social investments During the year ‟07-‟08 the bank has adopted Gundugolanu
village in Andhra Pradesh for improving health , sanitation , education facilities with a
comprehensive budget of 5.50cr. Rural Development: All the public sector banks are having
highest number of rural branches in India. So all the banks take steps for development of rural
people. The State Bank of India (SBI) is committed to spending one per cent of its profits in social
welfare activities for the benefit of the community. Accordingly, while the bank's profit last year
was Rs. 8,200 crore, it spent Rs. 82 crore in community welfare activities under its corporate social
responsibility, according to its Deputy Managing Director Sharad Sharma. RBI said to every bank
that they should spent 1% of the net profit on CSR activities. UCO Bank has received the "Second
Position for National Award" for Excellence in Micro Enterprises Lending during 2007-08. The
Bank's Chairman & Managing Director received the Award from Shri Manmohan Singh, the
Honarable Prime Minister of India on 30.08.2008.The Bank also received the "BEST BANK"
National Award for lending under Rural Employment Generation Programme in Eastern Zone
from the Chairperson of Khadi Village & Industries Commission. The Bank has launched several
new Schemes during the year 2012-13, UCO KISAN BHOOMI VRIDHI Scheme, UCO KISAN
TATKAL Scheme, UCO ESTATE PURCHASE LOAN Scheme, Scheme for Solar Irrigation
Pump set, UCO KISAN ALL PURPOSE TERM LOAN SCHEME, Scheme for relending to
individual borrowers having settled their Direct Agriculture loan dues under Compromise/ One
time settlement scheme (OTS)/legal action. Bank of Baroda has always believed in making a
difference to society at large. As a responsible corporate citizen, it has been its vision to empower
the community through socio-economic development of underprivileged and weaker sections.
Most of the Bank's social activities are linked to rural masses, i.e., adoption of 101 villages across
India for their all-around development and providing financial assistance for development of
infrastructure facilities like setting up village libraries, community hall and solar lighting systems
in villages. The Bank had adopted 500 villages for 100% Financial Inclusion, and this has already
been achieved in all 500 villages. The Bank formulated various area-specific schemes tailor-made
to the needs of local requirements, particularly where there is a concentration of industries like
Rice Mills, Cold storages, Poultry units, etc. Allahabad Bank: The Bank, as a responsible corporate
citizen, has initiated the following measures towards sustainable development of the society
reflecting its concern for human rights and environment. The Bank has established two more Rural
Self Employment Training Institutes (RSETI) this year for imparting training to Farmers,
unemployed youths, NGOs, SHGs etc. for improvement of skills and entrepreneurship ability. .
The Bank had extended financial support in different sectors like Provision of arsenic free drinking
water in a village. Andhra Bank: Being an integral part of society bank is aware of its corporate
social responsibilities and has engaged in community and social investments. Bank has taken many
initiatives with the objective of providing philanthropic assistance for development, education etc.
The Bank has taken initiatives for including more people from the marginalized and down trodden
sections into the banking system. Under the aegis Andhra bank rural development trust bank is
imparting training to youth in rural and semi urban areas so that poor people can take up self
employment ventures. The bank has already implemented financial inclusions in districts of Orissa
and Andhra Pradesh. During the year ‟07-‟08 the bank has adopted Gundugolanu village in
Andhra Pradesh for improving health, sanitation, education facilities with a comprehensive budget
of 5.50cr.

Children & Women: State Bank of India has constituted SBI's Children's Welfare scheme as a
trust in 1983.The corpus of the fund is made up of contribution by staff members with equal
contribution by the Bank. The Bank extends grants from this fund to institutions engaged in the
welfare of under privileged / downtrodden children like orphans; destitute, challenged and
deprived etc.CSR is not an isolated practice or initiative for SBI but runs through its entire
business paradigm. In SBI there is a department name Community Service Banking which deals
with CSR activities. Mainly SBI deals with Donations, Adoption of girl child, blood donation
camps, Medical camps, Family Planning Camps, Veterinary Camps, Adult literary classes, Ladies
club activities, Tree planting Activities special programme for children and other cultural
activities. UCO Bank Women beneficiaries were given finance to the tune of Rs. 3429 crore which
constitutes 6.89 per cent of Adjusted Net Bank Credit against the National Parameter of 5 per cent.
As on 31.03.2009, credit facilities of Rs. 3176 crore has been extended to Minority Communities
which is 13.01 per cent of Priority Sector Advance as against the target of 13 per cent set for the
year. Under health care category Thalassaemia Society of India was provided with Bank's donation
of Rs. 6 lakh for treatment of Thalassaemic children belonging to BPL category. A van costing Rs.
7.90 lakh was donated to Disha Foundation, Jaipur for the physically and mentally retarded. Rs.
5.00 lakhs as donation was awarded to Kharda Janakalyan Rognirnoy Kendra, Kharda for running
a diagnostic clinic for the weaker sections. Bank of Baroda During the Financial Year FY13, your
Bank disbursed donations amounting to Rs.699.74 lakh to various organizations engaged in the
field of education, Corporate Social Responsibility: A Study Of Selected Public Sector Banks In
India www.iosrjournals.org 7 | Page health, women welfare etc. The Bank coordinates its CSR
activities with its Micro-finance and Self-Help Group (SHG) financing. The Bank has developed
relationships with 91,536 SHG and has extended credit facilities of Rs 636.00 crore through SHGs,
whereby million of households have been beneficiaries of financial inclusion. Allahabad Bank
Corporate Social Responsibility (CSR) was introduced for the first time in the Bank in September /
October, 2012 and was targeted mainly on the rural populace. The Bank had extended financial
support in different sectors as below .Provision of arsenic-free drinking water in a village. One
time support to 10 tribal girl children for their education. Contribution towards renovation of a
rehabilitation centre for mentally challenged women. Andhra Bank has taken initiatives for
including more people from the marginalized and down trodden sections into the banking system.
Under the aegis Andhra bank rural development trust bank is imparting training to youth in rural
and semi urban areas so that poor people can take up self employment ventures. They also conduct
vocational and human resource development training. So far they have provided training to 71,666
participants. The bank has taken initiatives for including more people from the marginalized and
down trodden sections into the banking system.

Social Community Welfare: As per the data highest number of banks has contributed for
social community welfare activity. State Bank of India is always in forefront to help states affected
by natural calamities. During the current fiscal SBI has lent its helping hand to the States of
Assam, Sikkim, Uttarkhand, Maharashtra etc. with donation to Chief Minister's Relief fund to
respective States provide to the people affected by flood to a tune of Rs.9.00 crore. UCO Bank
Overlay the CSR activities of the bank are lending to agriculture, financing new farmers, issuance
of kissan credit card, finance to women beneficiaries, finance to minority community, finance to
weaker section of society, advances under education loan scheme, financing of micro, small and
medium, enterprises. Bank has formed a trust “UCO DEVELOPMENT TRUST” through which
the bank has started entrepreneurship development center at Howrah (West Bengal) and Puri
(Orissa). The Bank believes that carrying out Corporate Social Responsibility (CSR) helps in
tangible value-creation. Moreover, CSR creates a positive image in the society and inculcates
essence of loyalty for the Bank among a cross-section of countrymen. In tune with this perception,
the Bank made separate donations for deserving as well as noble causes during the year Rs. 10
lakh was extended to Chief Minister's Relief Fund, Sikkim for assistance during natural calamity.
Bank of Baroda has been giving donations for the following purposes: For the spread of education
– including for the girl child and womenfolk in remote villages. To reputed colleges/public schools
and other similar institutions. To reputed hospitals engaged in charity or in service of weaker
sections Assisting families of soldiers died in wars and handicapped soldiers, Old age homes,
Preservation of places of historical interest like gardens, forts, temples etc. Promotion of efforts for
protection, conservation and cleaning of environment including plantation/re-plantation, rivers,
lakes, forests, sanctuaries etc, Adoption of gardens in cities where the Bank's name can be
publicized, Family planning activities for promoting the promotion and use of non exhaustible
sources of energy like solar power, gobar gas plants in rural areas, Vaccination projects for
controlling spread of diseases/ epidemics ,Providing support to organizations extending support to
handicapped persons like blind, lame, deaf and dumb, etc. Allahabad Bank has launched a scheme
to meet the total financial requirement of self help groups (SHGs) members for taking up
economic activities and meeting social needs such as Housing, Health, Marriage, Educations and
Consumption and Swapping of debts to informal lenders. Total financial assistance under the
scheme is to the extent of Rs. 50,000/- per member of SHG with a maximum ceiling of Rs. 5.00
lakhs per SHG. Andhra Bank Being an integral part of society bank is aware of its corporate social
responsibilities and has engaged in community and social investments. Bank has taken many
initiatives with the objective of providing philanthropic assistance for development, education etc.
Under the aegis Andhra bank rural development trust bank is imparting training to youth in rural
and semi urban areas so that poor people can take up self employment ventures.
 SBI BUSINESS RESPONSIBILITY POLICY

POLICY STATEMENT

State Bank of India is committed to:

Enhancing stakeholder’s value though value-driven engagement.

 Economic and social well-being of the society, particularly the less fortunate and under-
privileged members of the society.
 Minimize the direct and indirect impact of its operations on the environment.

In order to further guide our Sustainability Development journey, the individual elements of the
policy are grouped into three key pillars – Social Responsibility, Environmental Responsibility and
Economic Responsibility. The policy and its elements are applicable to all Departments / Verticals
/ Business Groups of State Bank of India.

Social Responsibility

 Adhere to highest standards of honest and ethical conduct, including proper and ethical
procedures in dealing with actual or apparent conflicts of interest between personal and
professional relationships. The Bank does not tolerate any proven instance of bribery and
corruption.
 Provide a workplace environment that is safe, hygienic, humane, harassment free and
which upholds the dignity of the employees.
 Provide equal opportunities to all employees and refrain from discrimination based on
caste, creed, gender, race and religion. Respect the employees’ rights to freedom of
association.
 Provide timely remuneration to employees, conduct trainings and accord due importance to
work-life balance.
 Refrain from using child labour, forced or compulsory labour.
 Work towards stakeholder value creation by systematically engaging with them,
understanding their concerns and formulate strategies to address them. Special emphasis
would be given to the less fortunate and under- privileged members of the society.
  Utilize the trade and industry chambers and associations for advocating public policy
formulation regarding country specific sustainable development issues.
 Make efforts to understand the impact of the bank operations on the society and strive to
respond to the needs by utilizing the allocated resources to protect the interests of the less
fortunate and under-privileged members of the society. Employees are encouraged to
contribute to the social cause within the available means and interest. The Bank has a
Board approved CSR Policy which lays down the framework for discharging its
responsibility towards Society. Bank’s CSR Policy clearly sets out how & where the Bank
will deploy the CSR spend.

Environmental Responsibility

Minimize the overall environmental footprint through reduction in consumption of natural

resources, pollution prevention, waste minimization, using renewable energy etc.

 Adopt feasible clean technology wherever applicable.

 Strive to procure products or services from locally-based suppliers who comply with the
local and national regulations pertaining to their business.
 Progressively encourage and support its members of value chain to adopt its environmental
policy/management systems.

Economic Responsibility

 Provide complete factual information on products & services to protect the interest of
customers.
 Accord preference to projects/products which accrue more environmental/social benefits.
 Ensure customer privacy.
 Ensure compliance with applicable standards/guidelines while advertising and make efforts
to improve the financial literacy of the stakeholders.
 IMPLEMENTATION

The Business Responsibility Policy is circulated across all Departments / Business Groups /
Verticals of the Bank. Further, it is communicated to all employees through induction programs,
orientation sessions and internal portals.

The designated Nodal Officer (BR officer) heads the BR function of the Bank. He / She reports
directly to the Managing Director & Group Executive (NB), and is responsible for implementation
of the policy, identification of various initiatives and ensuring their effective implementation by
the BR Function staff. The BR Officer, who would head the BR Function is responsible for
implementing the BR initiatives, provide clarifications on the policy, 0guiding the staff in
implementation, review the results, audit, impact assessment etc.

SBI has a robust grievance handling procedure for employees to address and resolve complaints.
Any policy violation by an employee is brought to the notice of the BR officer. All steps would be
taken for free and fair treatment of the complaints.
 REVIEW OF LITERATURE
The BR Function is responsible for overall BR policy compliance. The head of each Bank unit
(Branch / Department / Business Group / Vertical) is responsible for compliance of the BR Policy.
He / She would update the BR Officer about the policy implementation, initiatives taken,
discriminatory complaints received, cases of incidents of violation of freedom of association and
collective bargaining etc. The BR Officer would update the Top Management.

The BR Policy will be updated from time to time by the BR Officer i.e. General Manager
(Corporate Communication & Change), in the light of amendments to laws, rules and regulations,
as applicable, and an annual review report shall be submitted to the Board.

State Bank of India Business Responsibility Governance Structure

Board of Directors

CSR Committee (Chairman, MD & CFO, MD & GE (NB) Independent Director)

MD & GE (NB)

GM (CC&C)

BR Function

CORPORATE SOCIAL RESPONSIBILITY POLICY: CONCEPT

The concept of Corporate Social Responsibility (CSR) was introduced in the State Bank of India as
early as 1973, under the name Innovative Banking, covering both banking as well as non-banking
activities. The initial emphasis was on assisting groups belonging to the weaker and downtrodden
sections of society by providing avenues for improvement of their economic condition. Non-
banking activities involved participation in community activities which contributed to the
communal good, e.g. blood donation camps, health camps, participation in local festivals, adult
literacy, tree planting etc. As the scope of activities increased, the Bank classified these activities
as Community Service Banking. Community Service Banking is now one of the activities through
which the Bank plays the role of a responsible and responsive corporate citizen and discharges its
corporate social responsibility to the community.
CORPORATE PHILOSOPHY:

 The Bank is a corporate citizen, with resources at its command and benefits which it
derives from operating in society in general. It therefore owes a solemn duty to the less
fortunate and under-privileged members of the same society.
 Staff members are encouraged to make their contribution by understanding the aspirations
of the public around them and by endeavouring to evolve measures to remove indisputable
social and developmental lacunae. This will lead to their self-development and
improvement of the Bank’s image besides development of the Community.

Under community service banking, various welfare and social activities are undertaken by the
Bank both in Banking and Non-Banking areas to raise the quality of life of the downtrodden and
under-privileged sections of society.
 : CSR PRACTICE
BANK’S DONATIONS

In terms of Reserve Bank of India instructions, the Bank can sanction donations up to 1% of the
previous year’s profits. The Bank shall not carry forward the unutilised amount of the permissible
limit of any year for use in subsequent years. The Board of Directors of the Bank are required to
lay down the policy of making donations including the purpose for which donations may be given.

Bank’s donations are classified under 2 broad categories:

a) National Donations b) Normal Donations

CEILING

The annual ceiling for donations, i.e. 1% of the previous year's published profit is divided as:

 Normal Donations [0.75% of profit]

 National Donations [0.25% of profit]

The unutilized portion of either of the two categories of donations may, at the discretion of the
Chairman, be utilized for the remaining category of donations in case its quota for the year has
been exhausted.

NATIONAL DONATIONS

 Donations granted to funds sponsored / recognized by Central or State Governments, like

Prime Minister’s National Relief Fund, National Defence Fund, Chief Minister’s Relief
Fund etc. for relief / rehabilitation during natural calamities.
 25% of donation ceiling [0.25% of profit] is earmarked for National Donations.
 All National Donations are included while computing the 1% annual ceiling applicable for
overall donations in a year except for donations to Prime Minister’s National Relief Fund
which has been excluded by the Reserve Bank of India.
 All National donations are to be sanctioned at Corporate Centre only.

BANKING ARRANGEMENT FOR NATIONAL DONATIONS RECEIVED

FROM THE PUBLIC AND DONORS OTHER THAN THE BANK:
In addition to our donation, the Bank will also facilitate the collection of donations by the Public
and other donors to the Prime Minister’s National Relief Fund. All branches of the Bank will
receive contributions to the Prime Minister’s National Relief Fund and transfer the funds so
collected to the Nodal branch, i.e. Institutional Division, New Delhi Main branch every day
without fail. Institutional Division, New Delhi Main branch is to deposit the funds so collected
with Central Bank of India, 70, Janpath Branch, New Delhi.

NORMAL DONATIONS

Donations granted to voluntary organizations / NGOs/ charitable institutions registered as Societies

or Public Charitable Trusts for implementing socially oriented projects will be deemed as Normal
Donations. 75% of the donation ceiling [0.75 % of profit] is earmarked for Normal Donations.

ELIGIBILITY

 Discretion to be exercised judiciously to ensure that assistance is extended for worthy

causes to well established institutions / NGOs with proven track record, for socially
oriented projects. It should be ensured that donations are invariably made directly to
institutions / NGOs without any involvement of agents/middlemen/consultants.
 Donations should be routed through institutions having a long unblemished record of
public service.
 Institution should preferably be registered as a Society or a Charitable Trust.
 Donations should be made only to institutions/NGOs eligible for tax exemption, i.e.
institution/NGOs should have income-tax exemption certificate under Sec.80(G) / 35 of
I.T. Act, so that Bank can claim tax exemption.
 Donations should be made only to institutions/NGOs having an account with State Bank of
India.
 Request for donations from institutions having caste / religious / communal bias and/or
political overtones should not be considered.
 Donations to Government Departments or Organisations / Institutions funded exclusively
by the Government should not be given as these institutions are expected to meet their
financial requirements through government budgetary grants. Donations given for
promotion of Information Technology / computer education and for promotion of Sports
 are exceptions where proposals from Government aided Departments / Organisations /
Institutions may also be considered.
 Donations to institutions which are having their own funds and / or can raise, on their own,
funds to meet costs of their project should be avoided.
 Institutions with meagre resources should be given preference.
 In respect of donations to multi-branch organizations, Circles should obtain in-principle
approval from Corporate Centre before considering donations to such institutions at Circle
level.
 Donations are not to be given to individuals.

PURPOSE

 To have a lasting impact, donations are to be released for the purchase of some equipment
for clearly identifiable projects, which seek to provide long term advantages to the target
beneficiaries (preferably underprivileged / deprived sections of society) and are conducive
to their sustained development.
 Preference may be given for donations for purchase of vehicles like ambulance/school bus
etc. which provide visibility for the Bank.
 Donations for construction activities should be discouraged. Only in very exceptional
circumstances, donations may be considered for construction activities provided it directly
benefits the target beneficiaries.
 Donations should not be released as contribution towards corpus funds. In very exceptional
and deserving cases, donations may also be considered for augmentation of corpus fund or
creation of endowment funds for awarding scholarships to meritorious and economically
weaker students pursuing higher / technical / management education at reputed institutions
like IIMs, IITs, etc. Such donations may, however, be granted on extremely selective basis
and only to highly reputed institutions.
 Donations should be given for a specific activity / purpose rather than a general donation to
discourage utilisation of such funds at the discretion of the donee institution.
 Donations for meeting recurring expenses should be discouraged.
 Similarly donations for too many small value sundry items (like bed sheets, pillow-covers,
utensils, carpets, chairs, fans, mattresses, etc.) should normally be avoided as it becomes
 difficult to monitor utilisation of such donations. Further, donations for such items do not
yield desired publicity to the Bank.
 The Circle should make efforts to ensure that there is equitable distribution of donations.
Donations are to be distributed among different institutions by Circles and not limited to a
few donee institutions.

Normal Donations may cover the following areas:

Health

ii) Education

iii) Sports and Games.

iv) Adoption of the Girl Child

v) Women’s empowerment

vi) Child development

vii) Welfare and rehabilitation of poor and handicapped

viii) Assistance to poor and under privileged

ix) Entrepreneur development programmes

x) Vocational guidance

xi) Thrust for assistance to IT education in Rural /Tribal / unreached areas

xii) Environment protection

xiii) Adoption, maintenance, restoration of historic / heritage monuments / buildings including

activities such as audio visual and son et lumiere shows

xiv) Assistance during natural calamities like floods/droughts etc

Repeat donation should be considered only after a gap of three years from the date of sanction of
previous donation, if considered absolutely necessary. However, in deserving cases, the MD & GE
(NBG) may allow deviation from this rule.
  Donations can be considered for development of infrastructure, like laying of tracks /
artificial turf at stadia, purchase of training equipment and sports material to Central / State
Governments as also reputed boards, sports associations working / established at national /
state level.
 Donations can be considered for motivating and ensuring involvement of masses for social
upliftment and beneficial / developmental activities by utilizing services of eminent figures
/ prominent personalities for lectures, tours etc.
 Requests for high value donations should be considered carefully and on a very selective
basis and granted only to highly reputed organizations / institutions with proven track
record.

ADOPTION OF THE GIRL CHILD

Society’s preference for the boy child has resulted in a large number of instances when the girl
child is deprived of familial attention, education, affection, healthcare and in extreme cases, even
food. In order to supplement the efforts of the Govt., to change this concept, Branches may adopt
Girl Children in the age group of 6 to 14 years, who are orphans / destitute / physically
handicapped / belong to poor families.

A lump sum amount of Rs.3000/ to Rs.5000/- per annum is given for the child’s education. Apart
from financial assistance, it is desirable that individual employees from the Bank / spouses of
employees should adopt one or two children for care / mentoring / counselling, to try and fulfil the
role of a foster parent.

IN CONNECTION

a. When a girl child is selected for adoption, support should continue till she finishes school except
in cases where the girl drops out from the school.

b. Circles are encouraged to engage in activities which will bring out the child’s needs both
financially and emotionally. Our aim should be to fulfil the emotional needs too, through
monitoring, social intervention, counselling and spending quality time with them.

c. It is especially desirable to associate our lady employees and wives in the initiative.
Officials and staff of the branches adopting girl children should be encouraged to maintain regular
contact with the beneficiaries to provide them with emotional and psychological support.

e. Further the underlying ethos of the adoption scheme i.e. developing a more personal relationship
with the adopted child should be shared with the operating functionaries to make the adoption
meaningful and creating a long term bond and goodwill for the Bank.

f. The financial assistance should be provided directly to the school on behalf of the child
identified.

INFORMATION TECHNOLOGY (IT)/COMPUTER EDUCATION

With a view to dissipating Information Technology education to the remotest areas of our country
amongst the downtrodden classes, requests received for donations from NGOs / Institutions /
schools, both government and private (whether aided or unaided) / reputed universities or technical
institutes to acquire hardware (computers and other accessories) and/or software may be
considered provided the Bank is satisfied that the purpose is to spread IT education amongst the
needy.

Preference to be given to NGOs / institutions undertaking projects in under developed and

backward regions of the country, particularly tribal areas which are predominantly inhabited by
downtrodden and underprivileged people.

MONETARY CEILING

 Maximum ceiling for individual donation under ‘Normal Donations’ is 3% of Normal

donation quota.
 Ceiling for donations to each multi-branch organization like Indian Red Cross Society,
Ramakrishna Mission etc. not to exceed 5% of Normal donation quota at the whole Bank
level. In deserving cases, donations in excess of 5% of the ceiling may also be considered
on a case-to-case basis for highly reputed multi-branch organizations.
 Each instance of donation should not exceed Rs. 25 lacs. Under exceptional circumstances,
ECCB may sanction beyond this cap.
 In case old or used computers / equipment being donated, the depreciated value of such
items should be taken as the amount of donation [and not the original value there of.
RESEARCH & DEVELOPMENT FUND

CONSTITUTION

The Bank set up the Research & Development Fund in 1977 with the primary objective of
supporting research work relevant broadly to the activities of the Bank.

ELIGIBILITY

 Under the Fund, Research grants are extended to Universities / reputed academic and
Research institutions for undertaking research projects which are of direct relevance to the
Bank / Banking industry or having indirect relevance to the Bank or which relate to the
emerging scenario in the Banking industry / Economy.
 Research grants should be considered only to the Universities or highly reputed academic
institutions.

PREFERENCE

 Preference should be given for appropriate and well-conceived projects / studies or action
programmes which could be completed over a period of 2/3 years.
 The maximum period for which assistance could be considered for any project would be
about 2 years.
 Topics of study should be relevant to the Bank / Banking industry.
 The Research Projects / Studies should be utilized properly by the relevant user
department(s) in the Bank.

PROCEDURE FOR OBTAINING FINANCIAL SANCTION FROM ECCB:

 Proposals for assistance under the Fund received from Universities / reputed academic
institutes for undertaking research projects / establishment of Chairs are submitted to
Corporate Centre by Circles together with recommendations for obtaining sanction. These
proposals are evaluated by the relevant User department and also by Economic Research
Department at Corporate Centre as to its utility to the Bank etc.
  User Department at Corporate Centre may also indicate the choice in selection of research
projects / establishment of Chairs for specified purpose. After the proposal is cleared by
User Department and ERD, approval from Steering Committee is obtained. The members
of the Steering Committee will be as under:

 MD & GE (NBG)
 MD & GE (IBG)
 MD & CFO
 DMD & CDO
 CGM & STU
 Financial approval from ECCB is obtained and conveyed to the Circle. The Circle would
arrange for disbursal of the amount, monitor the project and advise developments to
Corporate Centre for appraising the Steering Committee. The progress of the project will
also be evaluated by the relevant User Department at Corporate Centre.

DIRECT ACTIVITIES

 As part of community service, the Bank undertakes a number of welfare activities and
programmes directly which have a high social content through its branches / offices by way
of voluntary efforts of the staff members.
 These activities which are conducted on an ongoing basis showcase the Bank’s concern to
the societal needs / welfare.
 Some of such activities / programmes are:
 blood donation camps
 medical camps
 family planning camps
 veterinary camps
 adult literacy classes
 ladies club activities
  tree planting camps
 special programmes for children and
 other cultural activities.

Further, various community service banking activities are organized by LHOs / Administrative
Offices / branches to mark the observance of certain events for the welfare of underprivileged
sections of society.

When suitable Community Service activities are held, reasonable expenses may be incurred in
carrying out such direct activities as per the discretionary powers vested at various levels under the
Scheme of Delegation of Financial Powers, ‘General Matters – Group V(E) – Charges not
enumerated’.

SBI CHILDREN’S WELFARE FUND:

CONSTITUTION

The Bank constituted an SBI Children’s welfare Fund as a Trust in 1983. The following are its
Trustees:

Designation Position in the Trust

Chairman Chairman

MD & GE (NBG) Trustee

Nominee of SBI Officer's Federation Trustee

Nominee of SBI Staff Federation Trustee

DGM (CSR) Managing Trustee

The Corpus of the Fund is made up of contributions by staff members and matching contribution
provided by the Bank.

ELIGIBILITY FOR GRANTS :

Proposals for grants under the SBI Children’s Welfare Fund should be submitted to Corporate
Centre with the CGM’s recommendations, after vetting by the Circle Level Committee at the LHO
comprising of the following officials :

Circle Development Officer President

AGM (PR & CSB) Member Secretary

Representative of SBI Officers Association Member

Representative of SBI Staff Union Member

 The Fund extends grants to institutions engaged in the welfare of underprivileged /

downtrodden children like orphans, destitute, challenged and deprived, etc.
 The projects will be funded from the interest earned on the Corpus for providing shelter,
food, medical relief, education including vocational training, etc.
 Quantum of grant per project is, at present, limited up to a maximum of Rs.1 lakh as these
grants are disbursed from out of the interest earned on the corpus of the Trust. Grants
under the Fund are sanctioned only at Corporate Centre.
 0While the Circle Level Committee at LHO concerned will monitor the utilization of the
grant, the end use of the grant is to be ensured by the branch concerned.

COLLECTION & REMITTANCE OF FUNDS

The staff members should be requested / appealed to contribute funds voluntarily to the Fund.
Letters of authority may be given to salary disbursing officer for regular deduction from salary for
remittance to the Fund. Contributions above Rs.250/- p.a. are exempted under Section 80G of
Income- tax Act. Such remittances are to be sent by Circles for credit of Account No.10972434018
being maintained at Backbay Reclamation Branch, Mumbai at monthly intervals.

CONTROL RETURNS & ACCOUNTING PROCEDURE

CONTROL RETURNS

Control Return of donations sanctioned at Circle level will be put up to MD & GE (NBG).
Similarly Control Returns of donation sanctioned by CGM CAG & CGM MCG will be put up to
DMD & GE (CBG) & DMD & GE (MCG) respectively.

Control return in respect of donations sanctioned under Chief General Manager’s discretionary
powers is to be forwarded to Corporate Centre for quarters ended March / June / September /
December together with a statement of donations sanctioned by General Managers.

The Control Return should also include a report on the utilization of donations sanctioned, and the
publicity measures undertaken for all community service banking activities during the quarter.

ACCOUNTING PROCEDURE

The aggregate amount of donations sanctioned from 1st March of the previous financial year to the
end of February in the current financial year [both at Corporate Centre and at the Circle] should be
debited to Corporate Centre, as a single debit at the end of February every year, latest by 28th
February.

The relative List-cum-Debit advice together with an annexure containing complete details of
donations sanctioned should be forwarded to the Dy. General Manager (CSR), Corporate Centre,
to reach on or before 5th March every year to arrange for responding the same.

FOLLOW-UP FOR ENSURING END USE OF FUNDS DONATED

 Circles shall monitor the utilization of funds donated and ensure end use of funds for the
purpose for which they are sanctioned.
 Circles should ensure that the donee exhibits the Bank's logo along with the notation
“Thanks to State Bank of India”.
 Stamped receipt for the amount of donation and an attested photocopy of Income-tax
exemption certificate obtained from the donee institution are to be sent to Corporate Centre
for claiming the necessary tax exemption from tax authorities.
 CSR Activities by SBI

ENHANCING CSR EFFORTS

The SBI Group is vigorously promoting business activities in harmony with corporate social
responsibility (CSR) With our password to success, "integrity is the basis of profit," the SBI Group
is demonstrating that honest business activities will be rewarded.

DIRECT CONTRIBUTIONS TO SOCIETY SO FAR

The SBI Group believes an enterprise can only prosper in harmony with society. Building a better
company naturally produces better future results. As Professor Michael E. Porter of Harvard
University has stated, "corporate social contribution activities are like strategic investments for a
company." In addition to indirect contributions to society through main business activities, the SBI
Group is also taking the initiative to engage in direct social contribution activities.

2002/1

The Softbank Finance board of directors established a basic policy.

Each group company that earns over 300 million yen in profits after tax deductions donates
1% of its profit to the Children's Social Welfare Corporation.

2004/7

Charitable activities took hold.

After receiving the support of nine special government ordinance-designated cities and 39
prefectures, SBI donated 167.1 million yen (173 facilities) to children's homes and infant
homes that are under local government jurisdiction.

2004/12
 SBI established the SBI Child Welfare Limited Liability Intermediate Corporation.
In addition to donations from each SBI company, SBI became the first enterprise in Japan
to make use of stock options and securities as donations from supporters.

2005/1

SBI Child Welfare Limited Liability Intermediate Corporation became fully active.
SBI representatives visit local governments and child welfare facilities across Japan to
learn about child welfare facilities.
SBI representatives visit local authorities across Japan and participate in public hearings.

2005/3

SBI Child Welfare Limited Liability Intermediate Corporation started to receive donations
from supporters.
Founders of newly listed companies began to donate treasury stock.
Unlisted companies began to donate stock option rights.

2005/10

The SBI Children's Hope Foundation was established.

http://www.sbigroup.co.jp/zaidan/

The SBI Group invites supporters from a wide cross-section of society to participate in the
Foundation. The Foundation was established to help children become self-reliant adults and
to contribute to child welfare through activities to enhance child welfare awareness in
Japanese industry.

SBI creates foundation for group CSR activities

MUMBAI: The nation's largest lender State Bank of India(SBI) has created a separate company,
SBI Foundation, to carry out its massive CSR initiatives and hopes to get it "running" from July.
"We have been spending over 1 per cent of our profit on CSR even before the new law on
corporate social responsibility (CSR), mandating every company to spend 2 per cent of its profit
on such activities, came into effect. This is despite the fact that we are not legally bound to do so
as we are not governed by the Companies Act.

"So, to streamline our CSR activities and better target our efforts, we've decided to create a new
company called SBI Foundation. We hope to get the foundation running from July 1," general
manager in-charge of CSR and change management at SBI, Vinod Pande told PTI.
Incidentally, July 1 is the foundation day of the bank, which was started as Bank of Calcutta in
June 1806.

He said in fiscal 2104, the bank had spent Rs 115 crore on CSR, on a profit of Rs 10,891 crore,
which was Rs 6 crore more than its 1 per cent profit.

Pande said the SBI Foundation has already been registered under Section 8 of the Companies Act,
2013, which applies to non-profit companies or organisations and will be headquartered in
Mumbai.

The foundation has already taken an office in the 22-storey Air India Tower in the city, where the
bank has taken four floors.

When asked about management structure of the foundation, he said the bank
chairperson Arundhati Bhattacharya will be the chairman of the foundation and will have a full-
time managing director and chief executive.
That apart, SBI has eight foreign banking subsidiaries -- State Bank of India California, SBI
Canada, SBI Mauritius, Nepal SBI Bank, State Bank of India Botswana, Bank SBI Indonesia,
Bank of Bhutan, and Commercial Indo Bank.

The bank also has seven non-banking subsidiaries -- SBI Capital Markets, SBI Funds
Management, SBI Global Factors, SBI Cards & Payments Services, SBI DFHI, SBI General
Insurance Company, SBI Pension Funds -- and three joint ventures -- SBI Life
Insurance Company, SBI General Insurance Company and SBI-SG Global Securities, says the
State Bank's website.
The State Bank and its five associate banks are registered under a separate Act of Parliament, the
SBI Act.

Pande said once the foundation is registered and starts working, SBI and its five associates banks
as well its arms will carry out their CSR work via the foundation.

Pande said he expects that the total outgo from the group will be more than Rs 200 crore this
fiscal.

Except the associate banks, all of these subsidiaries will have to spend 2 per cent of their profits on
CSR as they are governed by the Companies Act, he said, adding that the bank has already
received approval from the Reserve Bank for setting up the company.
 STATE BANK OF INDIA's CSR INITIATIVES

Pratip Chaudhuri, Chairman, State Bank of India, under State Bank’s Corporate Social
Responsibility Activity (CSR), donated a School Bus to Ramakrishna Math Saradha Vidyalaya,
Madurai. The school is run by Ramakrishna Math, Madurai. The school was started in the year
2000, and having classes from KG to 5th standard with 627 inmates. Pratip Chaudhuri, Chairman
also donated an Ambulance van to Sacred Heart Hospital, Tuticorin.

The hospital provides high quality health care to the needy and downtrodden in Tuticorin, in a
befitting function arranged today at State Bank of India, Zonal Office, Madurai in the presence of
A.Krishna Kumar, Managing Director & Group Executive (NB), Corporate Centre,
Mumbai,Varsha Purandare Chief General Manager , Shri S.Krithivasan, Shri Sanjiv Chadha,
General Managers, Local Head Office Chennai and Shri Sundar Rajan Deputy General Manager,
Madurai.

SBI has a comprehensive CSR policy approved by the Board and the focus areas are Supporting
Education, Entrepreneur development & Health care, Assistance to Poor and under privileged,
Environmental protection, Clean energy, and help in National calamities.
For the financial year 2012-13, SBI earmarked Rs.117.07 crore i.e. 1% of SBI’s previous year
profit for CSR activity. During the current financial year, the Bank has extended financial
assistance for 300 Ambulance Vans to needy and service organisations, 42,000 water purifiers and
1, 40,000 ceiling fans to more than fifty thousand schools to provide clean water and conducive
climate to school children. Under health care activities SBI has extended assistance to a tune of
Rs. 14 crores for support to hospitals in the form of Medical equipments and others.

SBI is always in forefront to help states affected by natural calamities. During the current fiscal
SBI has lent its helping hand to the States of Assam, Sikkim, Uttarkhand, Maharashtra etc. with
donation to Chief Minister’s Relief fund to respective States to provide succour to the people
affected by flood to a tune of Rs.9.00 crore.
The Bank has constituted SBI’s Children’s Welfare scheme as a trust in 1983.The corpus of the
fund is made up of contribution by staff members with equal contribution by the Bank. The Bank
extends grants from this fund to institutions engaged in the welfare of under privileged /
downtrodden children like orphans, destitute, challenged and deprived etc.
CSR is not an isolated practice or initiative for STATE BANK OF INDIA but runs through its
entire business paradigm.
 RESEARCH METHODOLOGY

Research methodology means the method that is used for research on a specific topic. In this
research methodology, the basic trends will be taken into account. The basic purpose of
including this chapter is to assess the methodology that is used for research and the reason
for choosing that specific methodology in respect to how it helps and leads to a conclusion.

3.1 Research Philosophy

The methods used for a research include pondering over the in a theoretical way so that the
research approach can be applied, Mason stated (2002). The main purpose of explaining
research philosophy here is to get to know of as many research methods and information as
possible so that research can be made by gathering data about the Corporate Social
Responsibility of the organizations and how they actually practice it.

There are also techniques defined used for data acquisition for the purpose of research in case
the data could not be obtained. Saunders et al., (2007) mentions that research philosophy can
be categorized as is shown in the diagram below:

The major approaches are as follows:

. Realist Approach: The realistic approach states that all the data and information
collected are purely related to true beliefs
. Positivist Approach: This approach includes the hard facts and figures about the
research
. Interpretive: It includes getting information about the real time experiences of the
people included in the research

In this research paper, realist approach has been used. Information and data were collected
based on true beliefs.

3.2 Research Design

Research design gives the direction or framework how to carry out or conducting the research
project so that the desired result can be obtained. It is also called the overall research plan.
The basic purpose of this study is to know how do firms use CSR to build brand equity .

3.3 Units of analysis

Unit of analysis in this research is the case studies of four multinational companies SBI

3.4 Sample

In this study, sample consists of 4 multinational companies who are performing in different
parts of the world. This sample is based on non probability sample technique because the
sample is selected on the basis of convenience and by keeping in the mind the main issue,
variables on which this study is focusing environment, labor and local community and the
research questions. A sample of this study is representative because all the 4 companies deal
in different part of their world. It is not possible that all of them perform the same for us.
Some of them will be good, others will be moderate and few of them will be weak in this
scenario.

3.6 Research Approach

Inductive research approach will be carried out in this research and a result of provisional and
belief is a theory created by this research. The important inspection and assessment of the
specific process is done. In order to reach and find out to the areas of that general and basic
process and practice is called inductive thought. In this research, qualitative inductive
approach is being used.

This study focus on CSR partlarly MNCs and its effect on brand equity for this research
case study is the most appropriate research strategy because the case study look a research
question in its real-life context and it include in-depth examination of few insistence. In this
study multi case study approach will be used.

CSR is an important issue these days. This study will check that how a firm use CSR and how
it affect company.s brand equity. Does it effect in a positive manner or negative manner. In
order to check all these issues case study strategy are the most appropriate choice.

3.8 Data Collection

3.8.1 Secondary Data

Secondary data collection method is the one in which the data is already available and is not
the firsthand information. For this particular research, secondary data were used. This data
can both be used in small or large scaled surveys. The reliability of the data can be questioned
in the fact that the figures and facts were not collected by the researcher directly through
Primary Research, which is the mail disadvantage of conducting research on secondary data
available already. The data includes in this research was collected from different company
reports, websites, articles, company blogs, pressure groups. reports and the like.
 DATA ANALYSIS AND INTERPRETAITON

1. About respondent

AGE NO. OF RESPONDENTS

Below 18 4
19-30 46
31-40 17
41 and above 33

(a) Age

50
45
40
35
30
years

25
20
15
10
5
0
Below 18 19-30 31-40 41 and above
age

NO. OF RESPONDENTS
2.

OCCUPATION NO OF RESPONDENTS
Student 33
Employee 40
Business 22
Housewife 5

45
40
no. of respondent

35
30
25
20
15
10
5
0
Student Employee Business Housewife
occupation

NO OF RESPONDENTS
3. ) Monthly income

MONTHLY INCOME NO. OF RESPONDENT

Less than 10,000 11
10,000-20,000 53
20,000-30,000 27
30,000-40,000 9

9% 11%

27%

53%

Les s than 10,000 10,000-20,000 20,000-30,000 30,000-40,000

4. . Qualification

QUALIFICATION NO. OF RESPONDENTS

Under-graduate 42
Graduate 37
Post-graduate 14
Professional 7

7%

14%

42%

37%

Under-graduate Graduate Post-graduate Professional

 
5. Types of account maintained IN SBI AT CSR

Accounts SBI ICICI

Saving 54 31
Current 6 8
Fixed deposit 9 6
Any other 2 2

Types of account maintained

60
50
40
no. of
30
respond
20
ent 10
0
Saving Current Fixed Any other
deposit
Types of account

SBI ICICI
6. Frequency of your visit to bank

SBI ICICI
Daily 4 3
Weekly 8 9
Monthly 40 21
Yearly 8 7

Frequency of your visit ot bank

50
no. of respondents

40

30

20

10

0
Daily Weekly Monthly Yearly
time

SBI ICICI
7). Presence of enquiry counter

SBI CSR
YES 50 39
NO 10 1

Presence of enquiry counter

60
50
no. of respondent

50
39
40
30
20
10
10 1
0
SBI CSRICICI
name of the bank

YES NO

 good relationship with the customers.

 CONCLUSION
The perspective of Corporate Social Responsibility by initiating social and community initiatives
is to benefit the society and nation at large which sought to be achieved through the participation
of its employees. Though these five banking sectors have taken effect in the era of CSR but it is
not satisfactory. In order to attain the social objectives there is a need to frame a CSR policy in
every bank and prioritization of activities for social spending and allocation of separate funds
should be given for this specific purpose. The banks also created maximum value from its
activities and developed strategies to effectively communicate progress with various stakeholders
and provide information on the issues that concern them. To have an impact of spending and
utilization of allocated budget by CSR there should be a system of periodical monitoring and
reporting to the Board of Directors. Most banks use CSR as a marketing tool to spread the word
about their business, Generally speaking, most banks seem either unaware or don't monitor their
CSR. Special training needs to be given to business managers in working with social issues and
Participation of small and medium business should be encouraged... The concept of CSR has failed
to some extent to take deep root in India because of lack of coordination between the banks,
government, and non-government organizational efforts. The Financial Institutions should realize
that running an efficient and profitable business organization means ensuring that the surrounding
communities and environment grew and prospered along with the institutions. In a nutshell, it can
be said that the state of mind of the Indian entrepreneurs towards CSR is changing due to tough
competition in an international level. Conclusively, there are three suggestive measures which are
advisable for a better CSR in these banks. First is to enhance and accelerate government's
involvement in CSR activities, Second can be noted as development of a broad sector of the
consulting in the era of CSR, and lastly media should increase its interest and play a vital role in
the era of CSR
 BIBLIOGRAPHY

Websites

http://www.sbigroup.co.jp

https://www.sbi.co.in

http://articles.economictimes.indiatimes.com

http://www.indiainfoline.com

http://iosrjournals.org
 QUESTIONNAIRE
1. Do you have a copy/access to your organisation’s code of ethics/ conduct?

Yes No

2. Is the Code of conduct updated or reviewed as per the changing requirements?

Yes No Cannot say

3. Do you follow the rules framed by the Banking Conduct and Standard Board

of India?

Never Sometimes Often Always

4. Does your bank encourage professional banking training?

Yes No

5. Is behavioural training to the bank employees provided during the induction?

Yes No Cannot say

6. Does your Manager ensure that ethical practices are carried out at your bank?
Never Sometimes Often Always

7. Is your bank inspected every year?

Yes No Cannot say

8. (i) Does your bank give due recognition to the staff that prevents frauds in

your bank?

Yes No
 (ii) If yes, then what kind of reward is given?

Sl. No. Types of Reward

i. Verbal acknowledgement

ii. Personal note or card

iii. Banker of the year award

iv. Leave with pay

v. Others (Please specify)

9. Do your bank have customer grievances cell?

Yes No Cannot say

10. Is customer’s information secured in your bank?

Yes No

11. Does your bank analyse the business plan/project of the customer

thoroughly before sanctioning the loan?

Never Sometimes Often Always

12. Does your bank provide loan for organizations employing child labour?

Yes No Cannot say

13. Does your bank sanctions loan to any business that has been violating

the rules of Pollution Control Board?

Yes No Cannot say

399