A Study on Corporate Social Responsibility spending of selected Banking and Non Banking Financial Companies in Central Districts of Tamil Nadu

Abstract

            Corporate Social Responsibility spending by corporate in India is mandatory according to the Sec 135 of Companies Act, 2013. Every company having net worth of five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more, during any financial year have to spend at least two percent of the average net profits of the company made during the three immediately preceding financial years. The objective of this paper is to study about the CSR activities of ten financial institutions which includes three banks and seven non banking financial companies. The data used for the study was collected from the annual reports of the financial companies from 2014 to 2018. The study found that Sundaram Finance Ltd have almost spent the prescribed CSR amount, but the CSR spending of other financial institution is not as specified in the act. The study identified the most concentrated district for CSR activities among the Central districts of Tamil Nadu and the most concentrated development sector for CSR spending.  The paper concluded with the suggestions to improve the amount spend by the corporate towards CSR activities according to the CSR Rules of the government.