Sustainable Development Through Corporate Social Responsibility of Public Sector Banks in India

Abstract

The present study aims to analyse the theoretical perspective on the need for implementing corporate social responsibility (CSR) norms by public sector banks (PSBs) in India. The need to study CSR by PSBs in India arose due to the government monopoly and mandated CSR by the Central Bank. The current study analyses a theoretical framework of sustainable development (SD) through CSR by PSBs India. Additionally, the research examined various CSR indicators of PSBs through the development of an SD/CSR Index. The results for the unweighted average index revealed that banks are far from fulfilling SD norms through CSR. The calculated scores of an index also revealed that the State Bank of India secured the first rank in the index among PSBs, whereas Punjab, Sindh Bank, and UCO Bank secured the last rank. In terms of financial implications, effective CSR implementation of PSBs ensured banks to comply with the mandatory norms with enhancement of SD.