New Delhi, 10 December 2021: With four banks spending nil on their Corporate Social Responsibility (CSR), Public Sector Banks (PSBs) spent a total of Rs 261.45 crore in 2020-21. Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and Union Bank of India spent nil while State Bank of India was on top when it came to spending for the social cause.
It should be clear that PSBs are not covered by the Companies Act and hence the CSR policy related provisions of the Companies Act are not applicable to these banks. However, RBI has issued guidelines on Corporate Social Responsibility, Sustainable Development and Non-Financial Reporting – Role of Banks
The details emerged when Ashok Kumar Rawat, a BJP parliamentarian from Sitapur in Uttar Pradesh asked a question about PSBs and their CSR activities.
He asked, “Whether the Government has fixed any criteria for spending funds under the CSR by various PSBs and whether all PSBs are adhering to the provisions of the CSR?” He also asked the details of the works done along with the amount of funds allocated by each PSB during the last three years.
Responding to his question, Minister of State for Finance Bhagwat Karad responded saying that RBI has apprised that no such deviations were observed.
“It may be noted that CSR spending, approved by the bank Board, includes expenditure on activities that are not attributable to specific locations and are spread across the country with multiple organisations, including PSBs, supporting a project pan-India, e.g., Swachh Bharat Kosh, National Sports Development Fund, Clean Ganga Fund, PM’s National Relief Fund, etc. and therefore, the full CSR expenditure State / Union Territory-wise or backward and scheduled castes dominated regions wise cannot be apportioned, he said.
As per him, PSBs spend majorly on education, healthcare, enabling employment and vocational training, providing safe drinking water etc.
As per the data he shared, four banks including Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and Union Bank of India spend nil in 2018-19, 2019-20, 2020-21. However, Union Bank of India spent Rs 29 lakhs in 2021-22 till September but other banks maintain the same status.
On other hand, top spender on CSR includes State Bank of India, Canara Bank, Punjab National Bank and Bank of Baroda.
