COMPARATIVE ANALYSIS OF CORPORATE SOCIAL
RESPONSIBILITY IN PUBLIC AND PRIVATE SECTOR BANKS
IN INDIA.
Abstract
Corporate Social Responsibility (CSR) has become a crucial component of the
banking sector in India, shaping financial institutions' roles in sustainable
development and social welfare. Corporate social responsibility (CSR) is a
management idea where companies incorporate their socio-environmental
problems into their operations and maintain good relations with its stakeholders.
Section 135 of the companies Act of 2013, a new section of the new act, set
certain provisions on corporate social responsibility for entities doing business in
India, which resulted in a significant change in the creation, administration, and
governance of companies. This paper conducts a comparative analysis of CSR
initiatives undertaken by public and private sector banks in India, examining
their regulatory frameworks, strategic motivations, and societal impacts. The
CSR in Indian Banking Sector is aimed towards addressing the financial
inclusion, providing financial services to the unbanked or untapped areas of the
country, the socio-economic development of the country by focusing on the
activities like, poverty eradication, health and medical care, rural area
development, self- employment training and financial literacy trainings,
infrastructure development, education, and environmental Protection etc Public
sector banks primarily focus on government-mandated social welfare programs,
financial inclusion, and rural development, private sector banks integrate CSR
into their business strategies, emphasizing education, healthcare, and
environmental sustainability. The study highlights key differences in CSR
execution, funding allocation, and impact measurement, revealing that while
public banks operate under regulatory compliance, private banks leverage CSR
for brand building and competitive advantage.
Hypothesis
Public sector banks undertake CSR primarily to comply with government
mandates, whereas private sector banks engage in CSR to enhance their
corporate image and market position.
Research questions
1. How do CSR strategies differ between public and private sector banks in India
in terms of objectives, execution, and impact?
2. How do public and private sector banks interpret and implement the CSR
mandates under the Companies Act, 2013?
3. What are some examples of CSR initiatives that have led to significant social
change in India?
Scope of Research
This study focuses on comparing the CSR activities of public and private sector
banks in India, specifically analyzing how they plan, fund, and implement these
initiatives. It examines major banks like SBI, PNB, and Bank of Baroda (public
sector) and HDFC, ICICI, and Axis Bank (private sector). The study uses bank
reports, policy documents, and case studies to evaluate the impact of CSR
programs. The goal is to understand how CSR can be more effective in benefiting
society.
Methodology
This research adopts a comparative and analytical approach to study the CSR
initiatives of public and private sector banks in India. It relies on both qualitative
and quantitative methods to assess the differences in CSR strategies, execution,
and impact.
References
1. Singh, N., Srivastava, R., & Rastogi, R. (n.d.). CSR Practices & CSR
Reporting in Indian Banking Sector.
2. State Bank of India. (2020). Corporate Social Responsibility. Retrieved
from https://sbi.co.in/corporate/AR1920/download_center/english/11-4.10-
Corporate%20Social%20Responsibility.pdf
3. Reddy, M. S. (n.d.). Corporate Social Responsibility in Indian Banking
Sector – A Comparative Study of Public and Private Sector Banks.
Submitted to Sri Ramananda Theertha Maratwada University, Nanded.
Retrieved from
https://shodhgangotri.inflibnet.ac.in/bitstream/20.500.14146/5621/1/01_sy
nopsis.pdf.
4. Axis Bank. (2021, September 22). Axis Bank commits to positive
climate action and Sustainable Development Goals. Retrieved from
https://www.axisbank.com/about-us/press-releases/axis-bank-commits-to-
positive-climate-action-and-sustainable-development-goals
