Capstone project on

“CSR INITIATIVES OF ICICI AND HDFC BANK”

Submitted in partial fulfillment for the award of

“MASTERS IN MANAGEMENT STUDIES”

Under the guidance of

Dr. NehalJoshipura

Submitted by
KRUTI MUKESH GAJERA
20161015 (Roll No.)

DURGADEVI SARAF INSTITUTE OF MANAGEMENT STUDIES,

RAJASTHANI SAMMELAN CAMPUS, SV ROAD MALAD WEST
 STUDENT’S DECLARATION

This is to declare that the study presented by me to DurgadeviSaraf Institute of Management

Studies, in partial completion of the MMS under the title “CSR initiatives of ICICI and HDFC
Bank” had been done under the guidance of Prof NehalJoshipura.

Date: Signature of the student

KrutiGajera
MMS 20161015
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that Miss KrutiGajera has completed the capstone project “CSR initiatives of
ICICI and HDFC Bank” during 2017-18 under my guidance.

To the best of my knowledge the report submitted by her is original, no part of the report has
been submitted for award of any other degree fellowship or other similar titles or prizes.

Date: Signature of the Faculty Guide

Prof. NehalJoshipura
 ACKNOWLEDGEMENT

I take great pleasure in submitting my project report titled “Performance evaluation of Equity
funds in India” and I would like to express my sincere thanks to all those who helped me in
completion of my project.

I would like to extend my deep gratitude towards Dr. Nehaljoshipura who believed in the spirit
of my work and gave me the opportunity to learn & enhance my skills and knowledge.

I take this opportunity to express my deepest gratitude to all the staff and faculty members of
DurgadeviSaraf Institute of management without whose consistent support, co-operation,
guidance, encouragement and understanding, this project would never have been successfully
completed.
 TABLE OF CONTENT

INDEX

SR NO TOPIC PAGE NO

Executive Summary

1 Scope and Objectives 2

2 Introduction 3

3 Company analysis 8

4 Findings & Conclusion 19

 EXECUTIVE SUMMARY

In India the banking sector plays a very dominant role in the development of the economy. The
banking sector can be separated into private sector banks and public sector banks. In this paper
a study is piloted on ICICI Bank and HDFC Bank which is one of the big players of private
sector bank. Apart from the basic banking services the ICICI bank and HDFC Bank is also
indulged in taking CSR initiatives towards the benefit of society. CSR is a term which means
Corporate Social Responsibility can be elucidated as “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”. CSR is
fair not the charity it is additional to that. In this paper the data of ICICI Bank and HDFC Bank
for the three years is taken. An increase in the involvement is seen by the bank as the year
permits. The study stabs to through the light on different CSR initiatives accompanied by ICICI
Bank and HDFC Bank in the recent time.

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 OBJECTIVES OF THE STUDY

The Present study aims to evaluate the different dimensions of Corporate Social Responsibility with
respect to ICICI bank and HDFC bank.

1. To understand the concept of CSR.

2. To study the CSR initiatives conducted by the ICICI bank and HDFC bankin India.

3. To study the amount of expenditure made for CSR in last three years.

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 INTRODUCTION

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 statutory
requirements, which engages in "actions that appear to further some social good, beyond the
interests of the firm and that which is required by law". The binary choice between 'complying'
with the law and 'going beyond' the law must be qualified with some nuance. In many areas such
as environmental or labor regulations, employers can choose to comply with the law, to go
beyond the law, but they can also choose to not comply with the law, such as when they
deliberately ignore gender equality or the mandate to hire disabled workers. There must be a
recognition that many so-called 'hard' laws are also 'weak' laws, weak in the sense that they are
poorly enforced, with no or little control or no or few sanctions in case of non-compliance.
'Weak' law must not be confused with soft law. The aim is to increase long-term profits and
shareholder trust through positive public relations and high ethical standards to reduce business
and legal risk 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.

Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR or that CSR is
merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations.

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Political sociologists became interested in CSR in the context of theories of globalization,
neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist
legitimacy and in particular point out that what began as a social movement against uninhibited
corporate power was transformed by corporations into a 'business model' and a 'risk
management' device, often with questionable results.

CSR is titled to aid an organization's mission as well as serve as a guide to what the company
represents for its consumers. Business ethics is the part of applied ethics that examines ethical
principles and moral or ethical problems that can arise in a business environment. ISO 26000 is
the recognized international standard for CSR. Public sector organizations (the United Nations
for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to
similar principles, but with no formal act of legislation.

Within the world of business, the main “responsibility” for corporations has historically been to
make money and increase shareholder value. In other words, corporate financial responsibility
has been the sole bottom line driving force. However, in the last decade, a movement defining
broader corporate responsibilities– for the environment, for local communities, for working
conditions, and for ethical practices–has gathered momentum and taken hold. This new driving
force is known as corporate social responsibility (CSR). CSR is oftentimes also described as the
corporate “triple bottom line”–the totality of the corporation’s financial, social, and
environmental performance in conducting its business. Corporate social responsibility is the
commitment of business to contribute to sustainable economic development working with
employees, their families, the local community and society at large to improve the quality of life,
in ways that are both good for business and good for development. Just as business has certain
expectation on society, the society also has a right to expect business to behave in responsible
manner and to assume certain social obligations. The social role of business is rooted in its
economic role. In the business community, CSR is alternatively referred to as “corporate
citizenship,” which essentially means that a company should be a “good neighbor” within its
host community.

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Benefits of CSR

Benefit 1: The ability to have positive impact in the community:

Keeping social responsibility front of mind encourages businesses to act ethically and to consider
the social and environmental impacts of their business. In doing so, organisations can avoid or
mitigate detrimental impacts of their business on the community. In some cases, organisations
will find ways to make changes in their services or value chain that actually delivers benefits for
the community, where they once didn’t.

Benefit 2: It supports public value outcomes:

Put simply, public value is about the value that an organisation contributes to society. A sound,
robust corporate social responsibility framework and organisational mindset can genuinely help
organisations deliver public value outcomes by focusing on how their services can make a
difference in the community. This might happen indirectly, where an organisation’s services
enable others to contribute to the community, or directly through the organisation’s own
activities, such as volunteerism and philanthropy.

Benefit 3: It supports being an employer of choice:

Being an employer of choice typically translates into the company’s ability to attract and retain
high calibre staff. There are ways to approach being an employer of choice, including offering
work life balance, positive working conditions and work place flexibility. Studies have shown
that a robust corporate social responsibility framework can also help a company become more
attractive to potential future employees who are looking for workplaces with socially responsible
practices, community mindedness and sound ethics.

Benefit 4: It encourages both professional and personal development:

Providing employees with the opportunity to be involved in a company’s socially responsible
activities can have the benefit of teaching new skills to staff, which can in turn be applied in the
workplace. By undertaking activities outside of their usual work responsibilities, employees have
the chance to contribute to work and causes that they might feel passionate about, or learn
something entirely new which can help enrich their own perspectives. By supporting these
activities, organisations encourage growth and support for employees.

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Benefit 5: It enhances relationships with clients:
A strong corporate social responsibility framework is essential to building and maintaining trust
between the company and clients. It can strengthen ties, build alliances and foster strong working
relationships with both existing and new clients. One way this can be achieved is by offering
pro-bono or similar services where a company can partner with not-for-profit organisations to
support their public value outcomes, where funds or resources may be limited. In turn, this helps
deliver public value outcomes that may not have been delivered otherwise.

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 COMPANY ANALYSIS

CSR INITIATIVES OF ICICI BANK

The CSR Committee of the Company consist of three directors viz., UdayChitale, B. Prasanna
and Sundaram G. H.

The Company’s primary focus areas for CSR activities are:

 Education
 Health Care
 Skill development and sustainable livelihoods
 Financial inclusion
 Support employee engagement in CSR activities
 Capacity building for corporate social responsibilityOther areas

The Company partnered with ICICI Foundation for Inclusive Growth to support the cause of
elementary education, primary health, sustainable livelihood and skill development to achieve
the CSR objectives. The Company contributed to the Prime Minister’s National Relief Fund to
work on relief activities for the flood affected of Jammu & Kashmir.

1. A brief outline of the Company’s CSR policy, including overview of projects or programs
proposed to be undertaken and a reference to the web-link to the CSR policy and projects or
programs:

CSR has been a long-standing commitment at ICICI Securities Primary Dealership Limited (the
Company) and the ICICI Group and forms an integral part of our activities. The ICICI Group’s
contribution to social sector development includes several pioneering interventions, and is
implemented through theinvolvement of stakeholders within the Group and the broader
community. ICICI Bank established the ICICI Foundation for Inclusive Growth (ICICI
Foundation) in 2008 with a view to significantly expand the ICICI Group’s activities in the area
of CSR. Over the last few years ICICI Foundation has developed significant projects in specific

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areas, and has built capabilities for direct project implementation asopposed to extending
financial support to other organisations.

The CSR Policy of the Company sets the framework guiding the Company’s CSR activities. It
outlines the governance structure, operating framework, monitoring mechanism, and CSR
activities that would be undertaken. The CSR committee is the governing body that articulates
the scope of CSR activities and ensures compliance with the CSR policy. The Company’s CSR
activities are largely focused in the areas of education, health, skill development and financial
inclusion and other activities as the Company may choose to select in fulfilling its CSR
objectives.

2. The Composition of the CSR Committee:

The Company’s CSR Committee comprises one independent Director, the Managing Director &
CEO and the Executive Director, and is chaired by the Independent Director. The composition of
the Committee is set out below:

 UdayChitale, Chairman
 B. Prasanna
 Sundaram G. H.

The functions of the Committee include: review of CSR initiatives undertaken by the Company;
formulation and recommendation to the Board of a CSR Policy indicating the activities to be
undertaken by the Company and any amendments thereto; reviewing and recommending the
annual CSR plan to the Board; monitoring the CSR activities, implementation of and compliance
with the CSR Policy; and reviewing and implementing, if required, any other matter related to
CSR initiatives as recommended/suggested by RBI or any other body.

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CSR INITIATIVES OF HDFC BANK

HDFC Bank, has worked towards the vision of “Creating Sustainable Communities” through its
CSR Programmes. In line with therequirements of Section 135 of the Companies Act, the Bank
has instituted the CSR Policy, duly approved by the Board. HDFC Bank’s CSR policy outlines
the Bank’s mission to contribute to social and economic development of the communities at
large.

During the financial year 2016-17, the Bank has undertaken CSR Programmes aligned to the
CSR Policy in the below focus areas –

 Promoting Education
 Skill Training and Livelihood Enhancement
 Health Care
 Environmental Sustainability
 Eradicating Poverty
 Rural Development

Composition of CSR Committee

The Bank has also constituted a Board-level CSR Committee to govern the implementation of
the policy. The composition of the Committee is as follows:

 MsRenuKarnad
 Mr. Bobby Parikh
 Mr. ParthoDatta
 Mr. U C Sarangi
 Mr. AdityaPuri
 Mr. PareshSukthankar

‘Creating Sustainable Communities’ is the underlying philosophythat drives your Bank’s CSR
initiatives and it springs from one of its Core Values: Sustainability. The objective is to enable
families break the vicious circle of poverty and draw them into a cycle of growth, development
and empowerment without disturbing the ecological balance.

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The Bank is committed to identifying and supporting outreach programmes aimed at developing
and advancing the community in this manner. The Bank works through partnerships with Non-
Governmental Organizations (NGOs) as well as directly through its various businesses to create
social value through its products and services.

The Bank’s Holistic Rural Development Programme (HRDP) is its flagship CSR initiative. This
programme aims to improve the economic and social conditions of the villages where it operates.
The focus areas of HRDP are Promoting Education; Skills Training and Livelihood
Enhancement; Natural Resources Management; Healthcare and Hygiene; Financial Literacy and
Inclusion. Under the programme, the Bank is working in over 500 villages across 14 states in the
country.

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 DATA INTERPRETATION

CSR Details of FY 2014-15 (ICICI BANK)

CSR Development Project Amount

S.No Project(s) Sector(s) State District Outlay Amount Spent Mode of Implementation

1 Education Education Gujarat Ahmedabad 53,000,000.00 54,000,000.00 Other Implementing

Agency

2 Environmental Environmental PAN India NEC/ Not 32,300,000.00 28,943,140.00 Directly

Sustainability Sustainability mentioned

3 Livelihood Livelihood PAN India NEC/ Not 412,800,000.00 260,000,000.00 By Trusts/ Societies/
enhancement Enhancement mentioned Section 8 Company set up
projects Projects by the Company itself

4 Vocational Vocational Skills Karnataka Udupi 17,000,000.00 15,738,830.00 Directly

skills

5 Education Education PAN India NEC/ Not 15,000,000.00 9,169,133.00 By Trusts/ Societies/
mentioned Section 8 Company set up
by the Company itself

6 Education Education PAN India NEC/ Not 5,900,000.00 5,910,503.00 NEC/ Not Mentioned
mentioned

7 Health care Health Care Maharashtr Mumbai 6,200,000.00 6,174,000.00 Other Implementing
a City Agency

8 Prime Minister Prime Minister's Jammu NEC/ Not 37,000,000.00 37,836,401.00 Directly
National Relief National Relief And mentioned
Fund Fund Kashmir

9 Rural Rural PAN India NEC/ Not 1,300,000,000.00 1,137,670,000.00 Directly

development Development mentioned
projects Projects

Grand Total 1,879,200,000.00 1,555,442,007.00

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 CSR Details of FY 2015-16 (ICICI BANK)

Development Project Amount

S.No. CSR Project(s) Sector(s) State District Outlay Amount Spent Mode of Implementation

1 Rural Development Rural PAN NEC/ Not 1,400,000,000.00 1,196,615,673.00 NEC/ Not Mentioned
Projects Development India mentioned
Projects

2 Healthcare Health Care Rajasthan Jaipur 0.00 900,000.00 NEC/ Not Mentioned

3 Education Education PAN NEC/ Not 54,000,000.00 5,100,000.00 NEC/ Not Mentioned
India mentioned

4 Education Education PAN NEC/ Not 15,000,000.00 7,738,137.00 NEC/ Not Mentioned
India mentioned

5 Livelihood Livelihood PAN NEC/ Not 0.00 10,000,000.00 NEC/ Not Mentioned
Enhancement Projects Enhancement India mentioned
Projects

6 PM National Relief Prime PAN NEC/ Not 0.00 38,658,312.00 NEC/ Not Mentioned
Fund Minister's India mentioned
National Relief
Fund

7 Others Nec/ Not PAN NEC/ Not 41,000,000.00 6,100,000.00 NEC/ Not Mentioned
Mentioned India mentioned

8 Education, Vocational Nec/ Not Rajasthan NEC/ Not 450,000,000.00 450,000,000.00 NEC/ Not Mentioned
skills, Livelihood Mentioned mentioned
enhancement projects,
Poverty, Hunger &
Malnutrition,
Healthcare

Grand Total 1,960,000,000.00 1,715,112,122.00

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 CSR Details of FY 2016-17 (ICICI BANK)

Development Project Amount

S.No. CSR Project(s) Sector(s) State District Outlay Amount Spent Mode of Implementation

1 Rural development RURAL PAN NEC/ Not 1,370,000,000.00 1,303,300,000.00 Directly

projects including DEVELOPMENT India mentioned
digital village PROJECTS
initiative, financial
inclusion and financial
literacy

2 Financial Counsellling Education PAN NEC/ Not 8,000,000.00 9,300,000.00 Other Implementing Agency
India mentioned

3 Projects of ICICI Livelihood PAN NEC/ Not 580,000,000.00 475,000,000.00 By Trusts/ Societies/ Section 8
Foundation for Enhancement India mentioned Company set up by the
Inclusive Growth Projects Company itself

4 Miscellaneous Health care PAN NEC/ Not 63,000,000.00 36,100,000.00 Other Implementing Agency
India mentioned

Grand Total 2,021,000,000.00 1,823,700,000.00

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 CSR Details of FY 2014-15 (HDFC BANK)

CSR Development Project Amount

S.No. Project(s) Sector(s) State District Outlay Amount Spent Mode of Implementation

1 Environmental Environmental PAN NEC/ Not 9,500,000.00 9,500,000.00 Directly

sustainability Sustainability India mentioned

2 Vocational Vocational PAN NEC/ Not 124,700,000.00 124,700,000.00 By Trusts/ Societies/ Section 8
skills Skills India mentioned Company set up by the Company
itself

3 Education Education PAN NEC/ Not 76,300,000.00 76,300,000.00 By Trusts/ Societies/ Section 8
India mentioned Company set up by the Company
itself

4 Education Education PAN NEC/ Not 85,200,000.00 85,200,000.00 By Trusts/ Societies/ Section 8
India mentioned Company set up by the Company
itself

5 Health care Health Care PAN NEC/ Not 72,400,000.00 72,400,000.00 By Trusts/ Societies/ Section 8
India mentioned Company set up by the Company
itself

6 Not NEC/ Not PAN NEC/ Not 5,700,000.00 5,700,000.00 Directly

Mentioned Mentioned India mentioned

7 Rural Rural PAN NEC/ Not 801,800,000.00 801,800,000.00 By Trusts/ Societies/ Section 8
development Development India mentioned Company set up by the Company
projects Projects itself

Grand Total 1,175,600,000.00 1,175,600,000.00

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 CSR Details of FY 2015-16 (HDFC BANK)

CSR Development Project Amount

S.No. Project(s) Sector(s) State District Outlay Amount Spent Mode of Implementation

1 Rural Rural PAN NEC/ Not 1,408,900,000.00 930,400,000.00 NEC/ Not Mentioned
development Development India mentioned
projects. Projects

2 Environmental Environmental PAN NEC/ Not 7,200,000.00 7,200,000.00 NEC/ Not Mentioned
sustainability Sustainability India mentioned

3 Health care Health Care PAN NEC/ Not 82,600,000.00 82,600,000.00 NEC/ Not Mentioned
India mentioned

4 Poverty, Poverty, PAN NEC/ Not 13,600,000.00 0.00 NEC/ Not Mentioned
hunger, Eradicating India mentioned
malnutrition Hunger,
Malnutrition

5 Education Education PAN NEC/ Not 245,900,000.00 96,700,000.00 NEC/ Not Mentioned
India mentioned

6 Education Education PAN NEC/ Not 10,000,000.00 10,000,000.00 NEC/ Not Mentioned
India mentioned

7 Vocational Vocational PAN NEC/ Not 179,900,000.00 145,900,000.00 NEC/ Not Mentioned
skills Skills India mentioned

Grand Total 1,948,100,000.00 1,272,800,000.00

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 CSR Details of FY 2016-17 (HDFC BANK)

Development Project Amount Mode of

S.No. CSR Project(s) Sector(s) State District Outlay Amount Spent Implementation

1 Promoting Education PAN India NEC/ Not 0.00 180,100,000.00 Other Implementing
Education mentioned Agency

2 Promoting Education Maharashtra Mumbai 251,100,000.00 71,000,000.00 Directly

Education City

3 Environmental Environmental PAN India NEC/ Not 10,100,000.00 10,100,000.00 Directly

Sustainability Sustainability mentioned

4 Healthcare Health Care PAN India NEC/ Not 231,900,000.00 231,900,000.00 Directly
mentioned

5 Skill Training and Livelihood PAN India NEC/ Not 300,400,000.00 180,300,000.00 Directly
Livelihood Enhancement mentioned
Enhancement Projects

6 Rural Development Rural PAN India NEC/ Not 0.00 934,200,000.00 Other Implementing
Development mentioned Agency
Projects

7 Rural Development Rural PAN India NEC/ Not 2,201,300,000.00 1,267,100,000.00 Directly
Development mentioned
Projects

8 Overheads Rural PAN India NEC/ Not 14,800,000.00 14,800,000.00 Directly

Development mentioned
Projects

9 Skill Training and Livelihood PAN India NEC/ Not 0.00 120,100,000.00 Other Implementing
Livelihood Enhancement mentioned Agency
enhancement Projects

10 Eradicating Poverty Poverty, PAN India NEC/ Not 44,600,000.00 44,600,000.00 Other Implementing
Eradicating mentioned Agency
Hunger,
Malnutrition

Grand Total 3,054,200,000.00 3,054,200,000.00

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Comparative analysis

ICICI Bank FY 2014-15 FY 2015-16 FY 2016-17

Average Net Profit 85,789,620,197.00 1,060,000,000,000.00 99,863,893,310.00

CSR Prescribed Expenditure 1,715,792,404.00 2,121,075,993.00 1,997,277,866.00

CSR Spent 1,555,442,007.00 1,715,112,122.00 1,823,625,073.00

HDFC Bank
FY 2014-15 FY 2015-16 FY 2016-17

Average Net Profit 98,563,500,000.00 124,000,000,000.00 152,000,000,000.00

CSR Prescribed Expenditure 1,971,300,000.00 2,480,000,000.00 3,039,911,638.00

CSR Spent 1,185,500,000.00 1,272,800,000.00 3,054,237,852.00

During FY 2014-15 ICICI bank spent total of 155 crores whereas HDFC bank had spent 118
crores. Next year in 2015-16 ICICI banks’ CSR spent increased by 10.32% from 155 crores to
171 crores whereas HDFC banks’ CSR increased by 7.62% from 118 crores to 127 crores. In FY
2016-17 total CSR spent by ICICI bank was 182 crores which was 6.43% more compared to last
year whereas HDFC banks’ CSR increased by 140% since HDFC banks’ average profit had
increased whereas ICICI banks’ average net profit had decreased.

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 FINDINGS & CONCLUSION

Banking sector is highly contributing towards the Corporate Social Responsibilities for the
benefit of society along with their basic banking services, ICICI& HDFC banks are an emerging
private sector bank which is stepping positively towards the social banking apart from earning
the profit, both banks are increasing their amount of expenditure as the year possess, by seeing
its contribution in the year 2017 we can say that this Bank can give a tough competition to other
private sector banks. The Bank must try to increase the amount of expenditure in the future
which will shows a positive attitude by the banking sector. Banks can play an important role in
the growth of nation’s economy,when the people get additional support in the form of different
social programmes then their standard of living will raise and it help in making a developed
nation. The banks must focus on making the people aware about what they are doing for them so
that they can get the benefit from such CSR initiatives. The Banks work for their profit along
with contributing towards the society because corporate social responsibility is just not the
charity but a practical implementation of ethical ideas towards the society.

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 BIBLIOGRAPHY

(n.d.). Retrieved april 6, 2018, from national CSR portal: http://www.csr.gov.in/CSR/page-history.php

(2014-15). Annual Report HDFC Bank.

(2014-15). Annual Report ICICI bank.

(2015-16). Annual Report HDFC Bank.

(2015-16). Annual Report ICICI Bank.

(2016-17). Annual Report HDFC Bank.

(2016-17). Annual Report ICICI Bank.

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