ESAF Bank continues to play an instrumental role in driving sustainable and inclusive growth under CSR.
The unwavering commitment of ESAF Bank to CSR is evident in its dedicated efforts to allocate a substantial portion of its profits towards socially impactful initiatives. The decision to allocate 5% of the average net profits each financial year, surpassing the statutory obligation of 2%, is commendable. This move underscores the Bank’s commitment to not just fulfilling regulatory obligations, but to genuinely creating a positive impact in the community.
Overview
5th Scheduled Commercial Bank with its headquarters in Kerala has consistently shown its commitment to Corporate Social Responsibility (CSR) by focusing on key areas such as preventive healthcare, sanitation, education, livelihoods, and the environment. In FY22, the Bank allocated Rs. 8.76 crores and contributed 10,000 hours of non-profit activities, striving to facilitate a positive change in society. The Bank’s CSR agenda seeks to create meaningful value through optimal utilization of profits, generated through socially responsible initiatives.
Financial Inclusion, Livelihoods and Economic Development
Bank’s vision encapsulates promoting financial inclusion, livelihood, and economic development. ESAF Bank extends quality, affordable financial services to underserved and unserved people, concurrently developing a wide range of social initiatives. These efforts aim to improve the quality of life of low-income constituents, reflecting the Bank’s enduring commitment to creating a more equitable society.
CSR Outlay
| Year | Rs. Crore |
|---|---|
| FY19 | 1.15 |
| FY20 | 2.89 |
| FY21 | 7.15 |
| FY22 | 8.76 |
Partnering for Change
To effectively implement our CSR initiatives, we collaborate with our implementation partners, ESAF Foundation, and Prachodhan Development Services Limited. “We not only comply with the MCA’s CSR guidelines but go beyond, with our CSR Policy allocating 5% of the average net profit of the last 3 financial years for CSR initiatives.”, Bank’s Annual Report said. “This generous allocation underscores our commitment to making a difference in the communities we serve.”, it said.
Building a Sustainable Society
“Our diverse flagship projects, such as infrastructure development for rural schools, skill training, entrepreneurship training, and initiatives for migrant labourers, drive our contributions towards building a sustainable society.”, the report said. The Balajyothi Clubs for holistic development of children and sustainable agriculture training also feature prominently in our CSR portfolio, reflecting our commitment to nurturing future generations and promoting sustainable practices.
CSR Initiatives in FY2022
In FY2022, the Bank’s total CSR outlay amounted to Rs. 8.76 crore. “Our employees contributed significantly to these initiatives, volunteering over 10,000 hours and providing crucial support to communities. Through these activities, we not only met our goals but also encouraged non-profit humanitarian work, fostering a positive societal change.”, Bank said.
Social and Economic Development
The 25 years old bank’ CSR Policy articulates a positive contribution toward the economic, environmental, and social well-being of communities. “We aim to create a reliable, credible, and responsible business image by making a positive difference in society and giving back to the community. Our CSR focus areas are education, healthcare, sanitation, and livelihood development, areas that are critical to the overall development of the communities we serve.”, Bank said.
Compliance with Regulatory Provisions and Beyond
The Bank has constituted the Corporate Social Responsibility and Sustainability (CSRSCB) Committee (Read: Role And Responsibilities Of CSR Committee And Board ) in accordance with the provisions of Section 135 of the Companies Act, 2013. This Committee oversees the implementation of our CSR Projects and Programmes, ensuring inclusive and sustainable community development. In a bold move, the Bank has decided to allocate 5% of the average net profits every financial year for CSR, exceeding the statutory obligation of 2%.
Allocation and Utilization of CSR Funds in FY2022
In FY2022, the Bank allocated Rs. 8.76 crore towards CSR expenditures. Of this, Rs. 4.02 crore was spent on ongoing projects, and the unspent amount of Rs. 3.43 crore was transferred to the Unspent CSR Account. The Bank also spent Rs. 4.04 crore towards the completion of ongoing CSR projects initiated in the previous financial year. CSR projects and programmes were implemented either directly or through partner organisations with proven track records in executing cost-efficient, scalable, and outcome-driven CSR initiatives.
Promoting Social Well-being
ESAF Bank’s CSR policy underscores its commitment to promoting economic, environmental, and social well-being. The Bank’s efforts to build a sustainable society through diverse projects, including infrastructure development for rural schools, skills training, entrepreneurship training, and initiatives for migrant labourers, have all contributed significantly to enhancing the quality of life in the communities it serves.
Looking Ahead: Sustained Commitment to CSR
Going forward, ESAF Bank plans to maintain its robust commitment to CSR. With its focus on education, healthcare, sanitation, and livelihood development, the Bank aims to continue making meaningful contributions to the societal fabric. As ESAF Bank continues to grow, so too will its impact on the communities it serves. Through its consistent dedication to CSR, the Bank is indeed setting a shining example for other corporates to follow.
ESAF Small Finance Bank: A Trailblazer in Sustainable Banking
ESAF Small Finance Bank has emerged as a forerunner in executing sustainable banking practices within the Indian financial landscape. Together with its promoters, the Bank has an impressive track record of over 25 years, chiefly devoted to serving the unserved and underserved sections of society. The central focus has always been on promoting financial inclusion. Presently, ESAF Bank stands as one of the premier Small Finance Banks in India, distinguished by its high yield on advances, robust AUM growth rate, and a substantial share of retail deposits.
ESAF Bank holds the distinct honour of being the 5th Scheduled Commercial Bank with its headquarters in Kerala.
Additionally, it takes pride in being the first private sector institution to have been granted a banking licence in the state since India’s independence. This recognition underscores its significant contribution to the banking sector and its steadfast commitment to bringing financial services to the doorstep of every individual.
Dear Reader, You have reached the end of our article journey, and we want to extend our gratitude for accompanying us on this exploration. We hope that the words you’ve encountered have sparked new ideas, inspired fresh perspectives, and expanded your understanding of the subject matter. Kindly share the article within your network.
Copyright @ India CSR
Also Read: Corporate Governance: Top 10 Questions That Every Director Must Ask Itself
