Impact of corporate social responsibility in Indian Banking Sector

The major corporate social responsibility initiative has positive impact on Indianbanking sector. It significantly influences banking performance in terms of equitable income distribution, balanced regional economic growth, financial inclusion, lower cost of transaction, and provision of finance to all segments. Financial performance of banks has also been increased due to wide presence of corporate social responsibility initiatives. In order to check the impact of corporate social responsibility initiative in socio-economic development, this study considered ten years data from 2007–08 to 2016–17. This study widely used Augmented Dickey-Fuller test, Co-integration test, financial data analysis, and Bank Efficiency Score analysis for data analysis. The empirical result shows that the existence of significant long-term relationship between socio-economic development and corporate social responsibility components. Financial performance of banks due to the implementation of corporate social responsibility is found at satisfactory level. Moreover, the efficiency of banks has also been systematized due to corporate social responsibility initiatives. It was concluded that that corporate social responsibility has significant impact on Indian banking sector.