Chairman of the largest lender of the country, State Bank of India, Mr. Pratip Chaudhuri, raised questions about banks under spending the budget allocated to corporate social responsibility (CSR) activities. RBI guidelines mandate banks to spend 1% of their bottomline on CSR activities.
Mr. Chaudhary was chairing the e-launch of associate bank, State Bank of Travancore's (SBT) 1000th branch.
Corporate social responsibility (CSR) activity occupied a pride of place in the schemes of parent State Bank of India too, Mr. Chaudhary said.
When he joined the bank, the bank's net profit was Rs. 9100 crore, so ideally Rs. 91 crore should have been spent on CSR, but only Rs. 22 crore actually went into such activities.
Mr. Chaudhary stated that SBI corrected the fallacy in the very next financial year, where it spent the entire amount set aside for CSR activity. He further added that banks shouldn't just commit CSR funds to the neighbor areas, but move out of their home base.
SBT's Managing Director, Mr. P. Nandakumaran also praised his bank's involvement in community banking services at branch level. SBT is also working at over 500 branches on important issues like education, and geriatric care.
The event also saw the associate bank donating an ambulance and a school bus as a part of its commitment towards CSR activities.