Impact of Corporate Social Responsibility Practices on Financial Performance: A Study of Selected Banks in India

Dr. Sharif Mohd.

doi:https://doi.org/10.17492/jpi.manthan.v10i1.1012302

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Impact of Corporate Social Responsibility Practices on Financial Performance: A Study of Selected Banks in India

Sharif Mohd.

Vol 10 , Issue 1 , January - June 2023 | Pages: 27-42 | Research Paper

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https://doi.org/10.17492/jpi.manthan.v10i1.1012302

Published Online: June 05, 2023

Author Details ( * ) denotes Corresponding author

1. * Sharif Mohd., Assistant Prof. , Department of Commerce, Shivaji College, Delhi University, Delhi, Delhi, India (smohd2991@gmail.com)

Corporate Social Responsibility (CSR) in Indian banking sector is aimed at improving financial inclusion, and providing financial services to the untapped areas of the country. The socio-economic development of the country can be improved by focusing on activities like poverty eradication, health and medical care, rural development, financial literacy, education and environment protection. The purpose of this study is to examine the impact of CSR practices on financial performance of banks. This study uses a causal and cross sectional model to identify the impact of CSR on the financial performance of banks in India. The study finds that banks focus on the community welfare and farmers’ welfare programs, but the efforts for environmental practices, financial literacy and education are not sizeable. There is a significant difference between the CSR practices of public sector and private sector banks. Further, the study deduces that financial performance may get affected by CSR performance to some extent.

Keywords

CSR performance; Financial performance; Community welfare; Financial literacy; Environmental protection; Education; Farmer welfare

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