DOES CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE INFLUENCE BANKS FINANCIAL PERFORMANCE? – EVIDENCE FROM SELECTED PRIVATE SECTOR BANKS IN INDIA

Urpose- Corporate social responsibility (CSR) has taken an increased attention and importance in recent years especially in India for companies' act 2013 and its influence, as banking investors have given an increased priority to solve existing issues in their banking investment decision-making. The purpose of this paper is to empirically examine the impact of CSR on financial performance in terms of Net profit After Tax (NPA), Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS). Design/methodology/approach –This research is basically a causal study and Cross sectional models are employed to identify the impact of CSR on financial performance of selected private sector banks in India. Sample& Statistical tools techniques– In this study the sample of five years data from (2012-2017) of four private sector banks HDFC, Axis, KMB and ICICI have been taken. To find out the cause and effect relationship between CSR on financial performance of the banks correlation and Regression tools have employed. Findings – The empirical results shows that there is no relationship between CSR expenditure and financial performance of private sector banks in India. The CSR expenditure pattern of the banks explained that the banks in India have increased the level of CSR activities year by year and it is a sign of good improvement.