New Delhi: Kotak Mahindra Bank spent Rs 36.55 crore on corporate social responsibility (CSR) in the financial year 2018-19 (Apr-Mar) which was 0.76% of the prescribed budget under the Companies Act 2013.
The companies are required to spend at least 2% of the amount of the net profit for the last 3 financial years under the Companies Act 2013.
The Act prescribes 17 areas of CSR activity in Schedule VII of the act. Section 135 of the Act lays down rules for CSR activity in India. The policy which became effective from 1 April 2014, mandates those companies for CSR activity which have net worth of Rs 500 crore or more; or turnover of Rs 1,000 crore or more; or net profit of Rs 5 crore or more during any financial year.
The average net profit of the bank for the last three financial years was over Rs 4,813 crore, according to which the bank needed to spend Rs 96.27 crore on CSR activities during the year ended 31 Mar.
The Bank’s CSR expenditure in FY 2018-19 is over 38% higher than the previous financial year. In FY 2016-17, the CSR expenditure was Rs 17.33 crore, which increased to Rs 26.40 crore in FY 2017-18.
The company undertakes its CSR initiatives in sectors including education, vocational skills, livelihood, preventive healthcare and sanitation, reducing inequalities. Under the programmes, the company provides help to socially and economically backward groups.