The logo of HDFC Bank.
Credit: Reuters File Photo
Varanasi: The country's biggest private sector lender HDFC Bank looks to increase the income of 5 lakh marginal farmers earning less than Rs 60,000 annually by 2025, as part of its corporate social responsibility (CSR) initiative, Parivartan.
"The bank's focus on rural development reflects our continued commitment to fostering sustainable growth and uplifting vulnerable communities. Since its inception in 2014, Parivartan has grown into one of India's largest CSR programmes, active in 28 states and 8 Union Territories," HDFC Bank Deputy Managing Director Kaizad M Bharucha said.
Launched in 2014, HDFC Bank 'Parivartan' was established with the vision to contribute to the socio-economic development of communities across India.
With a CSR expenditure of over Rs 5,100 crore over the last decade, Parivartan has consistently aimed to empower individuals by creating sustainable livelihoods, fostering sustainable development, and creating real-life change.
Besides, he said, the bank under its CSR initiative, plans to impart skill training for nearly 2 lakh individuals to equip them with capabilities that drive self-sufficiency.
Bringing 2 lakh acres of unirrigated land under irrigation, fostering agricultural productivity and scholarships for 25,000 meritorious underprivileged students to improve access to education are some other initiatives that the bank intends to undertake.
Parivartan has made significant strides in key areas such as education, skill development, healthcare, and financial inclusion, aligning its efforts with nine of the 17 United Nations Sustainable Development Goals (SDGs), he said.
"Economic and financial well-being of society is what every responsible lender should aspire for. Our commitment to this principle is underscored in our CSR programme. Unequivocally, the business of banking is underpinned by trust and as a responsible lender, and the bank stands committed to contributing to nation-building," he added.
HDFC Bank has reported a CSR spend of Rs 945.31 crore for the financial year 2023-24, an increase of nearly Rs 125 crore from the previous year.
As per the Companies Act 2013, every company for which the CSR provisions apply must ensure that the firm spends in every financial year at least 2 per cent of its average net profits made during the immediately preceding three financial years as per its CSR policy.
The bank's net profit increased by 38 per cent to Rs 60,812 crore on FY'24 from Rs 44,109 crore in the previous fiscal. Average net profit of the company for the CSR calculation comes out to Rs 47,294 crore taking into account net profit of Rs 36,961 crore for FY'22. So, the bank should be spending around Rs 950 crore during the current fiscal.
"With over 65 per cent of India's population residing in rural areas, we strongly believe that inclusive development can only be attained when the prosperity and livelihood in villages keeps pace with the growth. We prioritise rural areas for our programme and currently 70 per cent of our programmes are being implemented in such areas," said Nusrat Pathan, Head CSR, HDFC Bank.
Bharucha further said that the bank is working towards becoming carbon neutral by 2031-32.
As part of this initiative, he said, the bank is looking at reducing its emissions, energy, and water consumption. The bank will continue to incorporate and scale up the use of renewable energy in its operations.
As part of the green initiative, he said, the bank has raised USD 300 million through its first ever sustainable finance bond issue in February this year.
It is being deployed for funding green and social loans including MSMEs and EV, he added.