CSR – Corporate Social Responsibility of Utkarsh Small Finance Bank

The Bank’s CSR aims to contribute to the social and economic development of the underprivileged and underserved community in low-income geographies.

The Board of Utkarsh Small Finance Bank Limited has approved CSR spend of Rs. 3.70 Crore during the FY 2021-22. Accordingly, the Bank has paid total corpus of CSR amount to Utkarsh Welfare Foundation, Section 8 company, specially formed to carry out CSR activities. The Bank’s CSR activities are implemented through Utkarsh Welfare Foundation. Utkarsh Small Finance Bank Limited (USFBL) commenced banking operations in 2017 with the objective of aiding in financial inclusion of the underbanked and the unbanked masses of the country.

The Bank strives to proactively encourage inclusive growth and development, thereby participating in building a sustainable future. The Bank has a duly constituted Corporate Social Responsibility Committee (CSR Committee) of the Board consisting of majority of Independent Directors.

The CSR spend was carried out in the fields of financial literacy, health initiatives, skill and entrepreneurship development programmes and other philanthropic initiatives (supporting orphanages and care centres for the elderly). The Bank has a Board approved CSR policy in line with the provisions of Section 135 of the Companies Act 2013. The Bank’s CSR spend, approved by the CSR Committee of the Board, is within such Board approved policy parameters.

The Bank’s CSR aims to contribute to the social and economic development of the underprivileged and underserved community in low-income geographies. Through impact-oriented interventions, the Bank seeks to mainstream economically, physically, and socially challenged groups and to draw them into the cycle of growth, development, and empowerment. Initiatives have been largely focussed on education, health, promoting livelihoods through skill building and vocational training. The Bank shall also promote initiatives that preserve, restore and enhance environment, ecological balance, natural resources, and improve sanitation and hygiene. All the projects or programs activities have been as per areas or subjects as specified in Schedule VII under Section 135 of the Companies Act, 2013.

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The Bank’s strategy is to integrate its activities in community development, social responsibility and environmental responsibility and encourage each business unit or function to include these considerations into its operations.

CSR Philosophy & Guiding Principles

CSR policy covers the entire process by which an organization approaches, defines and develops its relationships with stakeholders for the common good, and demonstrates its commitment in this regard by adoption of appropriate strategies and projects. Thus, CSR is not charity or mere donations but a way of giving back to society by going beyond business as usual, creating shared value and contributing to social and environmental betterment. The Bank’s CSR philosophy is based on cardinal principle to make a meaningful and measurable impact in the lives of economically, physically, and socially challenged communities of the Country.

The Bank invests in continuous efforts to positively impact the society particularly, the underserved and unsecured communities. The Bank has formulated policies for social development based on following guiding principles:

• Adopt an approach that aims at achieving a greater balance between social development and economic development.
• Adopt new measures to accelerate and ensure the basic needs of all people.
• Work towards elimination of barriers for the social inclusion of disadvantaged groups- such as the poor and the disabled.

• Support underprivileged and underserved segments by providing financial and non-financial services through a socially responsible, sustainable, and scalable institution

Organization set up

Utkarsh Welfare Foundation has been assigned with responsibility to undertake Corporate Social Responsibility activities on behalf of Utkarsh Small Finance Bank Limited. Utkarsh Welfare Foundation (UWF) aims to make a meaningful and sustainable impact in the lives of the community through a multi-pronged service-oriented market led approach. UWF initiatives are focussed on range of issues such as education, health, skill development, environment, micro enterprise training, sustainable livelihoods, water & sanitation.

The Bank overachieved its target outreach across all key thematic interventions such as Financial Literacy, Healthcare, Skill, vocational and enterprise and Village Development. A total of 2,20,038 beneficiaries were covered through various CSR initiatives against target outreach of 1,14,266 as on March 31, 2022.

There is a paradigm shift from outreach to outcome-based approach in project interventions. With this intended objective, the implementation partner Utkarsh Welfare Foundation continued with the community resource person model aimed at capacity building of the communities at local level in a sustainable manner.

During the FY 2021-22, the second wave of COVID-19 pandemic had adversely affected all and sundry, but the impact has been severe for the section at the bottom of the pyramid in terms of both health and economic hardships. For the year, CSR initiatives were focused around mitigating the effects of the COVID-19 pandemic besides focussing on key thematic areas such as financial literacy, skill, vocational and enterprise development, education and village development initiatives undertaken. In this direction, the foundation collaborated with M-Insure, Parul Sevashram Hospital, Mahamana Pandit Madan Mohan Malviya Cancer Centre, Community Health Centres and Primary Health Centre to intensify the COVID-19 response mechanisms.

The Corporate Social Responsibility Committee comprises:

a. Muralidharan Rajamani (Chairperson)
b. Ms. Kalpana Prakash Pandey (Member)
c. Govind Singh (Member)
d. Ajay Kumar Kapur (Member).

Following are the functions of the CSR Committee

i. Formulation and recommendation to Board, the Corporate Social Responsibility (CSR) strategy of the Bank including the CSR Policy and its implementation.

ii. Formulation and recommendation to Board, the CSR activities to be undertaken by Bank, either directly or through Utkarsh Welfare Foundation or through any other entity working for the welfare of society and determining the CSR projects / programmes which Bank plans to undertake during the year of implementation, specifying modalities of execution in the areas/sectors chosen and implementation schedules for the same.

iii. Recommendation to Board, the amount of expenditure to be incurred for CSR activities.

iv. Review and monitoring the compliance of initiatives undertaken and evaluate performance of the activities against the agreed targets.

v. Ensuring an impact-assessment of various initiatives undertaken in terms of the CSR Policy at periodic intervals.

vi. Instituting a transparent monitoring mechanism for ensuring implementation of the projects / programmes / activities proposed to be undertaken by Bank.

vii. Reviewing and recommending the annual CSR report for Board’s approval and for public disclosure.

viii. Performing such other duties with respect to CSR activities, as may be required to be done under any law, statute, rules, regulations etc. enacted by Government of India, RBI or by any other regulatory or statutory body.

x. To consider and review the CSR Initiatives of Bank with as per Section 135 of the Companies Act, 2013, Schedule VII of the Act and related circulars issued by the Ministry of Corporate Affairs from time to time.

xi. To review annual CSR policy of Bank and suggest changes within the purview of section 135 of the Companies Act, schedule VII of the act and related circulars issues by Ministry of corporate affairs.

xii. To monitor and review the CSR activities to be undertaken by the Bank through Utkarsh Welfare Foundation/ Identified CSR Implementing Partner.

xiii. To undertake CSR programmes/ projects with the approval of Boards on the recommendations of their CSR Committees.

ix. Corporate Social Responsibility Committee shall: a) formulate, review and recommend to Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by Bank as specified in Schedule VII; b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and c) monitor the Corporate Social Responsibility Policy Bank from time to time.

xiv. Performing such other duties with respect to CSR activities, as may be required to be done under any law, statute, rules, regulations, notifications etc. enacted or issued by Ministry of Corporate Affairs, Government of India, RBI or by any other regulatory or statutory body applicable to Bank.

xv. To consider and review the thematic areas under CSR initiatives of the Bank which currently comprises – Financial Awareness, Primary education, Health Camps, Health Awareness Programme, Health Infrastructure Support, Skill development and Vocational Training, Cluster based comprehensive village development programme, Supporting Orphanages and Support to Elderly Care.