IDBI (Industrial Development Bank of India) and Bharatiya Mahila Bank (BMB) have together invested Rs. 4.17 crore in FY 2016-17 in comparison to Rs. 9.5 crore in FY2015-16.
In FY 2016-17, IDBI has invested Rs. 4.17 crore, whereas BMB has not invested any amount in the corporate social responsibility sector.
IDBI (Industrial Development Bank of India) and Bharatiya Mahila Bank (BMB) are the only public sector banks covered under the Companies Act and hence these two companies invest in Corporate Social Responsibility (CSR).
The Public Sector Banks [except Industrial Development Bank of India (IDBI) and Bharatiya Mahila Bank (BMB)] are not covered under the Companies Act and hence Corporate Social Responsibility (CSR) policy is not applicable on the banks.
IDBI has received six requests to undertake various activities under CSR in FY 2016-17 and taken action keeping in view the Bank’s CSR Policy, CSR focus areas and CSR Budget.
As per RBI guidelines, all scheduled commercial banks including Public sector Banks are allowed to extend voluntary contribution/donation during a financial year, aggregating up to 1% of their published profit for the previous year. In case of loss making banks, they can make donations totalling Rs. 5 lakh only in a financial year. Such spending on donations by banks is voluntary in nature subject to respective board’s approval.