Compilation of responses received to “CSR: Is your bank a socially responsibile one?”

Original message:

CSR: Is your bank a socially responsibile one?

Fri Apr 10, 2009

The Karmayog CSR Ratings of the 1000 largest Indian companies in 2008 includes a sector-wise analysis of CSR activities.

See www.karmayog.org/csr2008 for details of the study and all sectors.

Following are observations for the Banking industry: (this does not include financial institutions)

- 40 out of 1000 companies are in the banking industry - 57% of these companies are doing CSR

- 60% of the companies are working in the area of Rural development

- There are six Level 3 companies: (Andhra Bank, Canara Bank, ICICI Bank, PNB, Union Bank of India, Yes Bank)

- Mandatory regulations on CSR for PSU banks ensures that most banks are doing some CSR

- The total Sales of 40 companies is Rs.2,60,000 cr.

- If 0.2% of sales is spent on CSR (as per Karmayog's recommendation), then annual CSR expenditure would amount to over Rs. 500 crores

Karmayog CSR Rating 2008 -- Number of Banks (total 40)
   Level 5 -- 0  
   Level 4 -- 0  
   Level 3 -- 6 

   Level 2 -- 9

   Level 1 -- 8 

   Level 0 -- 17  

The Reserve Bank of India has issued a notification in Dec. 2007 on the Role of Banks (including private) in CSR, Sustainable Devp., and Non-Financial Reporting. The Notification dt. Dec.20, 2007 is at http://www.karmayog.org/redirect/strred.asp?docId=16669

What would be your suggestion regarding CSR activities to be done by Banks?

Please see the details of CSR activities of 40 individual banks at http://www.karmayog.org/redirect/strred.asp?docId=22489 and send us your feedback on the same.

Regards,

Vinay

www.karmayog.org/csr2008 -- your interest is important

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1.

Congratulations to Karmayog which is an inspiring site. I try to keep up
with what is happening and have made very good contacts with the help of
this site! I am an educationist now working on CSR projects with schools and
colleges based on the principle of development education - where learners
take responsibility for the learning process and are active participants of
the same.

Currently CDE (My organisation - Centre for Development Education) has three
projects - The International Climate Challenge which is a climate change
project with the youth and is a CSR activity of Barclays, Gardens for Life
- school food garden project - which was a CSR activity of Syngenta
foundation earlier and is now run by us and Rights Bytes - a child rights -
short film project - which is funded by Chew TV and RIO UK.

I believe that CSR is NOT charity but RESPONSIBILITY. The company has to
take responsibility to educate, empower and strengthen the community (that
they sometimes mislead, misguide etc) just as it makes profits and declares
dividends. This is different from just donating money to a cause (Don't get
me wrong - both initiatives are very important) The difference is like
adopting a child as your own (responsibility) and just paying the school
fees and maintenance of another (charity). Again rehabilitating and
providing a life to people who are displaced by them is compensation which
they have to do - That is NOT CSR.

I have worked out on a list of projects which each company could do - Since
I work with Development Education and with colleges and schools I feel the
best way to get into the community is through the schools and colleges - be
it rural or urban.

Let me give you an example of a CSR project that I have designed for say a
bank like SBI - Fund a project that will work with the youth of 10 commerce
colleges in 4 or 5 cities. The project objectives? To train children who are
learning Banking in colleges to understanding the value of savings ,
investments, future planning, economics, sustainable development, macro and
micro financing - both individual , local and national. SBI could operate
their branches in these schools - Urban School/college students will walk to
school, use a water bottle and put the money to buy a bisleri...etc and save
their fuel cost and save that etc. And find creative solutions to save money
which they can get when they leave school. Teachers will be trained to do
the project and it should be done through the Banking subject that is taught
in commerce colleges!!! Study materials with real life experiences can be
developed with teachers and students and the banking subject that is so-oooo
pathetically bookish can be revamped... Thus SBI can 1. bring life to a
complete subject like banking. 2 with students projects develop a
publication that can be used by all colleges after this project. 3. If the
project is really good and has a great impact - it can impact the entire
banking curriculum with this.

FYI I had written a letter about our organisation and our ability to
implement such projects to all the chairman of banks - TWICE - but got no
response.. I am glad I can speak about my ideas here.

More details about our CSR projects can be had from www.cdeindia.in

Best,
Subbalakshmi

Subbalakshmi Kumar
Director,
Centre for Development Education
D2/3 Ratan Park - Phase II
Pashan Sus Road
Pune 411021, INDIA
Ph: 020-25871692; M: 0919371069730
www.cdeindia.in

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2.

Over Rs 1,000 cr is lying unclaimed with banks in India in 1 crore inactive accounts. Banks term money lying in accounts that have been inactive for over 10 years as unclaimed deposits according to the latest figures released by the Reserve Bank of India as of December ‘06.

Source: http://economictimes.indiatimes.com/Unclaimed_Money_Banks_may_end_up_with_Rs_1000_cr_booty/articleshow/2646368.cms

Some law should be introduced whereby these funds can be put into use for society as a whole instead of lying with and being enjoyed by individual banks.

In many countries, there are many bank and building society accounts that are lying dormant and unclaimed, often because people have forgotten about them. A number of countries have introduced unclaimed assets schemes to manage such accounts. These include Australia, Canada, Ireland, New Zealand, Spain and the United States. These schemes have a variety of different features e.g. UK has a "DORMANT BANK AND BUILDING SOCIETY ACCOUNTS ACT 2008" Source: http://www.opsi.gov.uk/acts/acts2008/en/ukpgaen_20080031_en_1.htm

Salient features:

- can be distributed for the benefit of the community, whilst ensuring the right of owners to reclaim their money is protected

- some money can be transferred to a charity or charities which meet certain conditions

Also see http://www.hm-treasury.gov.uk/d/unclaimedassets_uacc.pdf

Rgds,

Vinay

www.karmayog.org/csr2008

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3.

From: PARAM ESWARAN

Sat Apr 11, 2009 12:28 am

Dear Vinay :
I am a journalist, poet, awarded for poetry in USA but I work as a banker/manager for the past 36 years in a big nationalised bank. You will hear very radical remarks from me because I am always straight forward and I call a spade, a spade.

MY HUMBLE OPINION:

Most of the worker staff below the top management level of banks in today’s context are closer to people than they were before and many of them will agree with me, that Bankers are NOT able to execute or complete or finalize their EXPECTED STATUTORY FINANCIAL RESPONSIBILITES towards people due to GRAVE LACUNAE in many VITAL AREAS; For this I will blame First, and FOREMOST, the Finance Ministry who diluted the importance of BANKING INDUSTRY. by not recruiting people for those who quit, who died, who retired.

Now bank offices are full of half dead, nearly dead souls, stooping into the banking hall in the hope of expecting their normal delivery into the world on retirement, from the clutches of the ministry, the management, the Unions, the officer's Associations(all functioning without knowing resp.)

JUST TELL ME IF I AM WRONG:
Find out whether enough of battery backup hours is given in branches,
Whether Inverter facilites are given in bank branches;

ATM kiosks are without Webcams

Banking Halls and vital areas are without webcams

Security is totally lacking with top management

They get staff to punish and transfer employees depending upon their relationship with the unions.

Staff are generally good. But top mangements are crying without help from finance ministry.  Just ONE final word, WITHOUT APPROPRIATE MANPOWER AND TIME, work cannot be completed as desired. QUALITY OF WORK HAS GONE DOWN INCREASING THE RISE IN PRONENESS TO FRAUDS;
They are in a fix between the devil and the dead sea.  And this analysis is required BUT it should be carried out after--

REFUNDING THOSE ATM CLIENTS WHOSE ACCTS WERE DEBITED BUT MONEY WAS NOT REFUNDED, THIS AMOUNT MAY RUN TO CRORES at the top.
Ordinary salary employees get accts debited and do not get refund for more than 3 months.

Some have forgotten.

Computers and softwares are out of tune with the activity as bankers were not consulted in a proper fashion as to what is required.
Computer programmers make programs for Hospitals without knowing the ABCD of diseases and medicine.  The result is catastrophe.

FINAL IF CSR is expected of banks:
Minimum facilities for clients such as water, toilet sitting arrangements are required

Social expenditure should be monitored by an agency. However it will just be on papers and will not reach the real people whom shown as intended. However Banks are better than NGOs who are worse than our politicians in wrecking this country.

There are good people everywhere as exceptions.  They alone make the rains come without fail.

Bye

Param

D.PARAMESWARAN/PROJECT DIRECTOR/SUNFLOWERDANCE.COM/9442285506/MADURAI/INDIA
dpsfd2004@yahoo.com

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4.

From: Jitendra P. Shah

jpshah50@yahoo.com

Sat Apr 11, 2009 11:15 am

I am retired bank manager of a nationalised bank. The best CSR by private and public sector banks would be not to harass their customers, forget customer satisfaction or delight. Let not bank misuse SARFESAI against small borrowers instead of big defaulters.

Jitendra P. Shah Junagadh-Gujarat 09924106490

MY BLOG: jps50.blogspot.com 

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5.

Karmayog
Shri R.O. Somani Charitable Trust
Shreeniwas House, 2nd floor,
H. Somani Road , Fort,
Mumbai - 400001

Dear Shri Somani

Training programme on CSR- Interaction with Ms. Pooja Roy

Please refer to the presentation of Karmyog CSR rating of the 1000 largest
Indian Companies by Ms Pooja Roy at BIRD Lucknow .
We are very grateful to you for having deputed Ms Pooja Roy from your
organization to give us inputs on the innovative and noble work done by your
organization in evaluating the CSR initiatives of the Indian Corporate.

The presentation made by Ms Pooja Roy and the interaction / discussions we
had with her was really very useful for our training design. We will be
shortly making the announcement of the programme and would like to work in
close cooperation with you.

Yours sincerely
(R.R.Kulkarni)
Dy. General Manager / Faculty Member
Bankers Institute of Rural Development (BIRD), Lucknow

About BIRD:
Bankers Institute of Rural Development (BIRD), Lucknow is a premier institute
for providing training, research and consultancy services in the field of
agriculture and rural development banking in India. The Institute was
established in 1983 by National Bank for Agriculture and Rural Development
(NABARD), the apex development bank supporting agriculture and rural development
in India. In 1992, BIRD was reconstituted as a Society (under the Indian
Societies Registration Act, 1860), promoted and funded by NABARD.
It is an ISO 9001 : 2000 Certified Institute

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6.

From: mohan siroya

Cc: cccell@hotmail.com

Sat Apr 11, 2009 1:13 am 

Dear Vinay
 
As already rated by you, majority banks in India are performing poor on this CSR. In fact my grouse is that most of the Private and Public sector banks (Excluding nationalized) have not displayed any CSR being practiced by them on their websites.  Let them first let the public know what policy indeed they have and what has been implemented by them.

 As per our record of complaints received/handled by the Consumer Complaints Cell, 

1. These banks appear to be active only in making more money, giving less services and value to the senior  citizens or small account holders in metro cities.

2. Charges for various core /basic banking services, especially for safe deposit lockers are revised/levied upwards periodically; irrespective of the consideration for the needs of account holders.

3. The wordings of the BCSBI /RBI guidelines for levy of service charges are vague like "Reasonable" and "Transparent" which is open for disputes and different interpretations and there is no max cap put on such service charge even for basic/core services
 
Regards
 
Mohan Siroya 

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7.

From: Jagriti Operations

Sat Apr 11, 2009 11:16 am

All banks - especially the nationalised banks - have the capital required to convert to CFL and LED lighting in their Head, Zonal and Branch offices.

Many locations have roof tops open-to-sky to permit the fixture of Photo Voltaic panels to power at least a part of their energy needs. 

Let the RBI take the iniative and mandate that this be done.

Jagdish Raja

--
JAGRITI
Ramagondanahalli, Varthur Road, Whitefield
Bangalore 560 066 INDIA
T: +91 80 2847 5373, M: +91 98440 33373
E: operations@jagrititheatre.com, W: www.jagrititheatre.com 

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8.

From: sreedhar sharma

Sat Apr 11, 2009 11:17 am

tks for ur info on banks csr. i really doubt if anyone really does it seriously or it is to showcase their work before govt and public. to prevent the eyewash they should take the help of ngos like yours to spread their csr activity.

tks,sharma

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9.

From: Bharati Deshpande

bharati8000@yahoo.com

Sat Apr 11, 2009 12:12 pm

Vinay can you tell me how many banks CSR activities involve trying to reduce suicide of men and reducing harrassment of husbands under misuse of dowry laws .

I would be interested in that .

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10.

From: Narayan Varma

Sat Apr 11, 2009 12:50 am

I am happy to go thru this mail. I have interest in studying CSR and some day create well designed audit tool for professional rating of banks but presently my priorities does not give any time to go into it. I am also happy to note that three banks with who I do banking, YES, INDIAN, ING are ranked well.
Maybe at later date I may join hands with you on this subject.

 
Narayan Varma
56B Mittal Tower,
210 Nariman Point
Mumbai 400 021

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11.

From: <hillman@vsnl.com>

Sat Apr 11, 2009 12:45 am

Dear Vinay Ji,
I'm sure your efforts will convince them to realise their responsibilty.
After all if they think rationally, all their contribution to society would
help them grow more and help realise the dream of equity.
Regards,
M.Mirza
hillman@vsnl.com

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12.

From: Vijay Sharma

Sat Apr 11, 2009 11:16 am

Dear Vinay,

It's really wonderfull effort by karmayog.

Thanks for keeping me in loop.

vijay

Dr.Vijay Prakash Sharma ,

MSC, PHD, MAAA(USA),Gold Medalist(USA),

Senior Technical Advisor, The Vistaar project, Intra Health International Inc.

153-C, first floor,Road N0-4, Ashok Nagar,Vidyalay Marg, Ranchi-834002

Jharkhand, India.

Mobile: 9334042144,Phone: +91 651 2551251(R)

 drvijayprakashsharma@gmail.com

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13.

From: ruturajp .

Sat Apr 11, 2009 11:15 am

Really I enjoyed your analysis. Will it be possible to provide details of CSR activities carried out by PSU Banks.

Ruturaj

ruturajp@sify.com

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14.

Dear Karmayog Team

Namskar, Thanks for informative message This study help to building our brightness through the knowledge.

thanks

with regards,
Sanjay M.Vanani (MSW)

Department of Social Work

Saurashtra University,

Rajkot-360 005

Mo:-94280 55135

sanjay_vanani@yahoo.com