New Delhi, 1 March 2021: On the same day when Prime Minister of India Narendra Modi initiated second phase of Covid vaccination in the country by taking first dose of the vaccine at All India Institute of Medical Science AIIMS), New Delhi, India’s leading public sector Bank State Bank of India (SBI) committed Rs 11 crore to PM CARES Fund in a bid to support government’s COVID-19 vaccination drive. This is the second chunk of bank’s contribution towards PM CARES Fund. The bank and its employees had contributed to the fund earlier as well when Covid-19 had hit India.
It should be noted that SBI is not obliged to spend 2 per cent of its average of annual income under the Companies Act 2013. However, the company has been on forefront when comes to spending on upliftment of the society.
Dinesh Khara, Chairman, SBI said, "It is in times of adversity that the true form of unity is tested, and we all can take pride in the efforts that our nation has put in to fight the pandemic. The fight against the pandemic is not yet over, and as a responsible Corporate Citizen, we consider it our duty to support the government’s efforts to vaccinate all. I request everyone to come forward and help in whatever way they can to ensure a successful vaccination drive."
Early last year, SBI had committed 0.25% of its annual profit to support the fight against COVID-19 and also made significant contribution in the form of supply of masks, sanitizers among others to the needy. Additionally, SBI employees in their effort to support the nation in the unprecedented times had contributed Rs 107 Crores to the PM CARES Fund.
SBI’s Contribution towards CSR in 2019-20
India’s biggest public sector State Bank of India (SBI) spent Rs 27 Crore towards its Corporate Social Responsibility (CSR) for the financial year 2019-20. This is more than thrice the earmarked budget of Rs 8.62 Crore. Apart from this, its employees also contributed Rs 107 Crore to the PM Cares Fund to support the fight against Covid-19.
In the financial year 2019-20, the net profit of the Bank was Rs 862 Crore and it earmarked 1% of the profit which is Rs Rs 8.62 crore as CSR fund for the year.
It should be noted that few government entities like Air India, SBI and LIC fall outside the purview of CSR and any initiative taken up by them are voluntary in nature. Though, there is a demand for a level playing field for all corporate but the government is yet to take any decision on the issue.
However, the bank and its employees have spent a significant amount towards the social causes. In its annual report, the company informed that its staff members collectively donated Rs 108 crore to the PM Cares Fund. The bank also pledged Rs 30 crore for COVID related CSR activities along with donating around 21,000 PPE Kits to government hospitals.
It said, "Further, during the year, with the approval of RBI, Bank spent or donated a total of Rs 27.47 crore for various initiatives under CSR including donation of an amount of Rs 9 Crore towards Chief Minister Relief Fund of various states and Rs 12.38 crore to SBI Foundation (SBIF).
The focus areas of SBI’s CSR activities include Healthcare, Education, Livelihood, Skill Development, Environment Protection of National Heritage, Empowerment of Women, youth, and senior citizens, amongst others
CSR activities are implemented through the SBI Foundation, the CSR arm of State Bank of India which was established in 2015.
The bank’s Corporate Social Responsibility Committee (CSRC) was constituted on the 24th September 2014 as a measure of good corporate governance to review the activities undertaken by the Bank under Corporate Social Responsibility Policy.
The Committee was last reconstituted on the 18th February 2020 and has seven members. During the year 2019-20, four meetings of the Committee were held.
Area-wise CSR expenditure
Education
The bank says that it always strives to support education to weaker sections of society in remote, unreachable, and underdeveloped areas. It has spent an amount of Rs 1.13 crore to support education.
Healthcare
State Bank of India provides basic infrastructure to Hospitals and NGOs to improve the medical facilities of underprivileged and economically weaker sections of the society. To deliver quality healthcare services, an amount of Rs 1.75 crore has been spent during the year.
Skill Development
State Bank of India has undertaken skill development initiatives as a focus area to support the supply of trained manpower. It has set up 152 Rural Self Employment Training Institutes (RSETIs) across the country to help and mitigate the unemployment and underemployment problems of youth in the country. During FY2020, it allocated an amount of Rs 1 crore for capital expenditure of two RSETIs.
Empowerment of Women and Senior Citizens
During the financial year 2019-2020, an amount of Rs 0.42 crore was spent towards the empowerment of women and senior citizens. For the same, it donated a 13-seater TATA Winger vehicle to the Society of Sisters of the Destitute Santhisadan, Oramanjhi, Ranchi z Donation of a bus for senior citizen pilgrims to Sri Varaha Lakshmi Narasimha Swamy Temple.
Swachhata, Environment Protection and Sanitisation
The bank claims that it is committed to the Government’s mission of "Swachh Bharat" and has undertaken several initiatives across the country, which include providing sanitary napkin vending machines, dumper bins, and machines for plastic recycles, amongst others. During the financial year it has spent Rs 1.10 crore towards environment protection and sanitation.
SBI Children’s Welfare Fund
With the concept of "Charity begins at home", State Bank of India had established a Trust named SBI Children’s Welfare Fund in 1983, as an initiative by its staff members. The Trust receives funds from the voluntary contribution of the bank’s staff towards the betterment of the underprivileged and orphan children. The interest earned on the corpus of the fund is utilised to extend grants to Institutions engaged in the welfare of underprivileged children viz. orphans, differently abled, destitute, and deprived, amongst others.
National Donation
Many parts of India have recently been devastated by the Cyclone and Floods, causing large scale destruction of property and infrastructure. In the financial year ended on March 31,2020, the bank donated Rs 9.00 crore to various Chief Minister’s Relief Fund.
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