Axis Bank, India’s third largest private sector bank, has spent more than the mandated 2% of its average net profits for the last three financial years, amounting to Rs. 100.96 crores (previous year Rs. 127.94 crores)., earmarked for various CSR – Corporate Social Responsibility Projects during the year 2019-20, the bank said.
Since its founding in December 1993 as one of India’s first new-age private sector banks, the Bank has strived to play a leading role in helping create an open, resilient and sustainable Indian economy, one that is capable of serving the diverse needs of its diverse population and catalysing a robust environment for innovation and entrepreneurship, the bank said.
Guided by the CSR Committee of the Board and aligned to CSR Policy, the Bank’s CSR interventions focus broadly on poverty alleviation, rural sustainable livelihoods, financial inclusion and literacy, skill development, education and environmental sustainability. The Bank continues to implement and manage CSR activities directly as well as through the Axis Bank Foundation.
The Bank’s CSR activities are guided by its Policy on Corporate Social Responsibility, which has been formulated and adopted by the Bank, in terms of Section 135 of the Companies Act, 2013, the Companies (Corporate Social Responsibility Policy) Rules, 2014 with Schedule VII to the Act, as amended, from time to time.
The Composition of the CSR Committee
The Bank has constituted the Corporate Social Responsibility (CSR) Committee of the Board, in accordance with the provisions of Section 135 of the Companies Act, 2013, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended. The Corporate Social Responsibility Committee of the Board of Directors of the Bank (CSR Committee) comprises of 3 members out of which 1 is an Independent Director.
The CSR Committee comprises of Rakesh Makhija, Independent Director (Chairman), Rajesh Dahiya, Executive Director (Corporate Centre) and Rajiv Anand, Executive Director (Wholesale Banking) of the Bank.
CSR Committee meetings
In all, 4 meetings of CSR Committee were held during the Financial Year 2019-20 i.e. on 16th May 2019, 16th September 2019, 19th December 2019 and 16th March 2020. The meetings held on 16th May 2019 and 16th March 2020, were conducted through video conference.
Average net profit of the company for last three financial years: Rs. 5,030.78 crores
Prescribed CSR Expenditure (two per cent of the amount): Rs. 100.62 crores
Total amount spent for the financial year (2019-20): Rs. 100.96 crores (previous year Rs. 127.94 crores)
Axis Bank Foundation
Axis Bank Foundation (ABF), the Bank’s CSR arm, reaches out to millions of households across rural, sub‑urban and urban India. ABF’s work is around the core theme of ‘Sustainable Livelihoods’ wherein it works towards creating and strengthening rural livelihoods and imparting skilling to youth, including the differently abled, in rural and peri-urban areas. ABF works with experienced implementation partners with strong expertise in grassroots developmental solutions.
Under its Mission 2 Million, ABF is committed to supporting 2 million households by 2025, and has adopted a progressive and knowledge‑based approach that is closely aligned to India’s developmental priorities. ABF is active in 7,097 villages in 153 districts in 22 states.
The Bank executes its CSR activities directly by leveraging its geographical presence across the country, through Axis Bank Foundation (ABF), through registered NGOs, or in association with any other trusts, agencies or entities as deemed appropriate. Wherever possible, the Bank tries to align its CSR activities with pertinent Government schemes, with an intention to create a multiplier effect in the true spirit of the extant CSR norms.
India’s CSR Law
As per Section 135 of the Indian Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit computed as mandated by the Act for the immediately preceding three financial years on CSR activities. The Act prescribes that every company having a net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during any financial year shall ensure that it spends, in every financial year, at least 2% of the average net profits computed as mandated by the Act, in pursuance of its CSR Policy.
